M. HERRIOT RESIGNS.

Auckland Star, Volume LVI, Issue 85, 11 April 1925, Page 7

M. HERRIOT RESIGNS.

FRENCH GOVERNMENT DEFEAI THE FINANCIAL SITUATION " LET'S SAVE FRANCE 1" (By Cable.—Press Association.—Copyright. (Received 1 p.m.) PARIS, April 10. Tii<" fremier, M. Herriot, announcec his resignation after an adverse vote ii the Senate on the financial programme The announcement came almost im mediately after the vote of confidence which showed him to be defeated by 151 votes to 132. M. Herriot and his Cabinet walked out of the Chamber of Deputies, anc decided to resign without even the for mality of a Cabinet meeting. The vote followed a long, spiriteri debate on the Government's financial policy, and, coming on the heels of yes terday's meagre margin of 49 votes ir the Chamber of Deputies, clearly demon strated the dissipation of M. Herriot'i Parliamentary majority. Indications of the adverse vote were seen in the debate when tremendous applause was accorded to the formei Minister of Finance, M. Francois Marsal who reviewed and combated all M. Her riot's arguments. In the latter's address to the Chamber M. Marsal dwelt mainly upon the excess of the limit allowed in circulation by the Bank of France. M. Herriot, replying, again declared that the present financial crisis was an inheritance of previous post-war Administrations, and said the present Government had done its part in attempting to save the tottering franc. He said: "If this be war let's have it out right here. France must be saved. Let us save France with mc or without mc." M. Poincare, in a lengthy speech, denied M. Herriot's charge that former Administrations were responsible for the financial situation. Prior to the resignation a new turn was giver, to the financial situation as a result of the meeting this morning of all groups of the Left bloc to which M. Loucheur. who disapproves of M. de Monaie's bill, submitted a scheme for remedying the financial stringency by doubling the income tax, increasing the luxury taxes and applying the proceeds to the creation of a debt redemption fun. Simultaneously the debt will be reduced by successive conversions. The plan was favourably received, and will be submitted to the Finance Committee of the Chamber or* Deputies. Thus the Left bloc, which M. de Monzie's bill threatened to split, may reunite behind M. Loucheur's scheme. The extent of the excess of the banknote issue over the legal limit is disclosed by the weekly balance-sheet of the Banque de France, showing notes in circulation, 43,004,762,000 francs, which is 2,004,762.000 francs above the limit. This inflation was previously concealed. M. Herriot, defending Ms policy in a two hours' speech ?'n r>e Chamber of Deputies, said they wers faced with the curious fact that the aftermath of the war cost was 165 milliards in loans, whereas the war cost was 145 milliards. Dealing with the relations between the Banque de France and the Treasury, M. Herriot said they not only followed their predecessors, who constantly resorted to occult borrowing from the banks, but mentioned that the Poincare Covernment in April, 1924, clandestinely borrowed two and a-half millions from the banks. He had not revealed the truth earlier because he was convinced that France must be given a balanced budget before the appeal to make exceptional sacrifices was possible in order to help the Treasury out of a hole, for only then would the country feel that the money would be devoted to the redemption of the debt and not to current expenditure. M. Bokanowski, for the Opposition, while admitting the precedent of occult borrowing, charged the Government with being first to bear the responsibility of publication of an inaccurate balancefiheet by the Banque de France. The Chamber subsequently passed a vote of confidence in the Government. — (Reuter.)