London, Apr, 6.
'Speculative covering, engendered by the proposals in the new French Finance Bill, continued to give the frane a very' steady undertone during early dealings in the London foreign exchange market yesterday morning, although business was not large.
Dealers described the market as very thin. Hence, even a very small demand exercised a. disproportionate effect on the rate which, during the morning, was listed at 159.25 to the ound, compared with the opening fence level of 16025. However, at the close, it was quoted at 16050.
Most well-informed quarters believe {i the French Finance Bill is unlikely Altair {o pass the Senate in its present form, and that, even if another stop-gap Cabinet were to follow that of M. Leon Blum, the formation of a National Government cannot tong be delayed. Many views are held on what would happen to the frane if a National Government—materializes, Some circles believe a sharp "an-redation would accompany wholesale appreciation of capital, on the basis that France is, at present,! Undervalued in terms of general prices.
Other quarters believe any ten dency to repatriate would be offset by the fear that, in order to liquidate the State's heavy indebtedness to the Bank -of France," a new Finance Minister, especially if he were M. Paul Reynaud, would be anxious to devalue the currency, at least to the existing level, in order to secure profit from the re-valued gold stocks Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.