What happened over the next few days illustrates the overwhelming power that psychological factors had come to exercise over the currency market. On the day that Poincaré became prime minister, the franc touched 50 to the dollar. But even before he had had a chance to outline his financial program or introduce any new tax measures, his presence alone seemed to reassure investors. Within the space of two days, the franc had rebounded to 43 to the dollar and by the following week, it
