Lao Issara
The Lao Issara also did not manage the finances of the country appropriately. The army itself incurred a high cost for its maintenance, and Souphanouvong refused to account for it. Within a very short period of time, the Issara government ran out of money to pay for its own running, let alone anything else. In an attempt to reign in fiscal expenditure and inflation, the Minister of Finance, Katay Don Sasorith, issued new money in early 1946, which quickly became known as ‘Katay’s dried banana leaves’ for the poor quality of the paper on which it was printed and its uselessness. The Lao Issara, bankrupt and ill-equipped, could only await the inevitable French return. At the end of April 1946 the French took Vientiane, by May they had entered Luang Prabang, and the Lao Issara leadership fled into exile in Thailand.