The French Financial Problem

Archive Report

The Immediate Issue

The final overthrow of the Herriot Government on April 10 by an adverse vote of 156 to 152 In the French Senate was directly due to the fact that the Government, in spite of repeated declarations against inflation, had secretly authorized the Bank of France three months ago to exceed the legal 41 billion franc limit of bank note circulation by 5 billion francs. Herriot defended his government by placing the blame for France's financial crisis on the successive post-war governments which he claimed had left him a legacy which only radical treasures could solve. The Opposition pointed out that no matter how acute had been the crisis in the past no former government had ever resorted to illegal inflation. The real ...

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