Paris, Apr. 2
Th seriousness of the finanei situation is engrossing public atte tion. It appears that the Treasury does not kn which way to turn ¢e to meet ite iablities, which have been ager rated by the fact th many milliards of franes' with of short-term loans are maturing this Summer and that the bank note issue no longer suffices for com. mercial need The latest Bank of France state: ment shows that itx bank notex is dangerously near the legal cof Fes. 41,000,000,000.
he of Finance, Clementel, in a speech in the Senate to-day, attributed the high water mark of the note issue to the hoarding of bank notes. In order to cops with this, he foreshadowed a new feste, only to be employed for disommereial bills sisened by solvent traders. He denied that this was inflation.
'M. Clementel ment that Britain, France and Belgium had agreed to market 500,000,000 gold marks' worth of Dawes Scheme railway bonds in October.
The Premier, M. Herriot, follow-Jed. "He emphasized that the Government war opposed to intlatn nog intend to make a fre with the sits Later, M, Clementel's resignation, whi hasbeen accepted, followed Here ted intervention in the yesterday evening, Jicuyinge the Government's intention make a fresh note issue.
Herriot had been urgently summoned from the Chamber clear up misunderstandings an the Senators arising fro Clementel's speech dooli Treasury inflat The former Mi ter, M. Demonaie, has been nomi Clementel.
The seriousness of the et dicated by the fact that th wz of the Cabinet lasted until five clock this morning. M. Painlevé, Fresident of the Chamber, was present.
'A' report that the Cabinet fas signed is unfounded.—Reuter
Text read from the printed page and cleaned; old type leaves the occasional error.