Paris, Aug. 21, The bank strike still continues, to the manifest annoyance of the Government, which is beginning to be worried about the new 4 per cent. loan. This operation, as T have explained, is intended for the conversion of the bulk of the short term floating debt which attained guch proportions that any general tendency not to renew these loans would place the Treasury in the position of a bank confronted with a serious "run." M. Painlevé has publicly described the loan the only way of scrupulously fulfilling the national obligations and at the same time maintaining a sound currency. If the floating debt is not consolidated, the Government, he said, must either repudi its financial ' commitments—which would amount to national bankruptey—or borrow, more money from the Bank of France and increase the note circulation, Tu auch 4 position the Government would no doubt follow the line of least resistance and sanction a further issue of notes, which would be a disguised form of forced loan with all its consequences, such further fall in exchange, rise in prices and relapse in fixed interest securities.
Text read from the printed page and cleaned; old type leaves the occasional error.