FINANCES OF FRANCE.

Auckland Star, Volume LVI, Issue 83, 8 April 1925, Page 5

FINANCES OF FRANCE.

NEW MINISTER'S SCHEME.

SOCIALISTS' PROJECTS

THS LEVY ON CAPITAL

(Br C.-ble. — rress Association.—Copyright.)

(Received 2 p.m.) PARIS, April 7. The Chamber of Deputies has referred ' the Finance Bill to ifs Finance Committee for report. It agreed to M. de Jloiizie's i-ei|iM'.-t to debate the measure to-morrow in view of the anxiety of public opinion. I 11. de Jlonzie announced that interest i on the new perpetual rentes was issu- i able to subscribers of voluntary 10 per rent capital tax. and was fixed at 3 per cent. The. issue would be at par. All •who arc liable to income tax (with the cxpection of wiipe-earncrs) . who did not subscribe a tenth part of their capital, would bo exceptionally taxed on the amount of their default. Subscription would be payable quarterly for five year?. M. fie Monzie summed up the measure as "The Maximum of Option and the Jlinimum of Constraint Bill." Socialists are submitting to the committee a counter-project providing 10 per cent capital levy, but this ia simply a party demonstration. The Socialists are expected to vote for M. de Monzie's bill— (Reuter.) DIFFERENCES IN CABINET. M. HERRIOT'S HARD TASK. LONDON", April 7. Dispatches from Paris state that the Parliamentary struggle which is to eventuate to-day promises to be extremely severe. It is an open secret that serious differences arose in the Cabinet yesterday over the financial j measures which th<? Minister of Finance, M. de Monzie, submitted.

After several meetings of the Cabinet ihad been held it was announced that an agreement had been reached and a finance scheme had boon approved which ■would be ready for the signature of the President, M. Doumergue, this morning.

The members of the Chamber of Deputies will be asked this afternoon to refer the proposals to the Finance Committee. A clash may come on this motion if the Premier, M. Harriot, demands that it shall be treated as a vote of confidence.

The Paris correspondent of the "Morning Post" says the root of the trouble is that the Government is no longer able to count upon the small investors, because the high post-war loans which were raised to provide the money to pay for the restoration of the areas which were damaged in the war have fallen in value, and because tlie purchasing power of the franc has decreased.

'"Two solutions arc possible," says the correspondent. "The patient may be called upon to submit to an operation, or to l>o placed under a dietary regime. It seems as if the Senate is most unlikely to consent to the amputation of the national fortune.

"On the other hand, a majority could be found in favour of further taxes on alcohol and tobacco and other indirect taxes if M. Herriot were willing to accept the help of the parties of the Right."—(A. and N.Z.—Renter.)