Cynosure

All financial eyes fixed Finance Minister Joseph Caillaux with a world stare. With the British back on a gold basis (see Page 6), what did he intend to do?

M. Caillaux did not answer at once. On two occasions, he received U. S. Assistant Secretary of the Treasury Garrard B. Winston (on one occasion accompanied by U. S. Ambassador Myron T. Herrick) but, for the most part, he shut himself up in his departmental office and refused to be seen. Then came strange rumors of financial "novations" and "painful financial penance." Finally, the Finance Minister spoke.

Beyond saying that France could be expected to honor its bonds as soon as possible, he avoided reference to France's U. S. and British debts. He said that he was engaged in preparing the 1926 budget (the 1925 budget is still before the Senate) and that he aimed to produce one "which will be absolutely sound, as you English and Americans understand the word, which will meet every expenditure out of taxation and produce an impression of absolute sincerity." That, he said, was France's and his immediate task.

On the possibility and the probability of France's returning to a gold standard currency, he confessed that it was impossible for the country to remain indifferent to the predominant tendency among other nations in that direction; but, said he, "many other things come first," and concluded that the time was not yet ripe for its consideration.

Questioned on the means he would employ to increase revenue, the Finance Minister indicated more by emphasis than by direct discourse that the State monopolies would be reorganized; that Government relations with the railways would be revised in such way as to increase revenue and decrease expenditure ; that the Treasury would be relieved of the necessity of floating short-term credits to keep the floating debt floating; that, in his opinion, the most important item of all was to restore public confidence at home and abroad.