FINANCES OF FRANCE.

Auckland Star, Volume LVI, Issue 84, 9 April 1925, Page 5

FINANCES OF FRANCE.

CRISIS FOR GOVERNMENT. PARIS, April 8. . The Finance Committee of the Chamber of Deputies considered the Finance Bill in the presence of M. de Monzie. It was suggested that the clauses in the ■bill providing for the issue of 4.000,000,000 francs' worth of new banknotes should be treated as a separatc'bill and be adopted immediately; also, that the remainder of the proposals, providing for a forced capital loan, should' be further considered. The Premier (M. Herriot) refused to separate the two portions of the bill. He said he would stake the existence of hia Cabinet on the issue. The committee rose in the early hours of the morning. A communique was issued stating that the committee, by 19 votes to 14, had rejected the suggested separation of the clauses of the bill, but desired to study a measure devoted entirely to the improvement of the financial situation. Therefore, it reserved the right, while it was considering the remainder of the 'bill, to examine any possible counter-proposals. The committee will meet again later.— (Eeuter.) THE NOTE ISSUE. LEGAL LIMIT EXCEEDED. PARIS, April 8. The preamble to M. de Monzie's Finance Bill admits that the legal limit of the note issue was exceeded this year. The practice was rendered possible by the manipulation of various items in the weekly balance-sheet of the Banque de France, which must be terminated.

The banque demanded that the position between itself and the Treasury be legally regularised. The Government considers the increase in the note issue limit indispensable to the integrity of the banque's credit and healthy administration of the country's finances.— (A. and N.Z. Cable.)