FRENCH PUN FOR STABLE CURRENCY.

Auckland Star, Volume LXVIII, Issue 154, 1 July 1937, Page 7

FRENCH PUN FOR STABLE CURRENCY.

POLICY ACCEPTED.

Government Granted Extreme Powers.

LIVELY DISCUSSIONS

United Press Association.—Copyright.

(Received 1 i a.m.)

PARIS, June 30.

The Finance Committee of the Senate adopted the Government's Finance Bill by 20 votes to 3, with 10 abstentions, and the Senate later accepted the measure by 167 votes to 82.

Shouts in the Senate of "Post it" greeted the explanation by M. Abel Gardey, the Finance Commission rapporteur of why the Senate had refused the Socialist, M. Blum, full powers but had granted them to the Radical, M. Chautemps.

"Post it"' means that under the law the speech will be placarded in every town hall public hoarding, but though the show of hands favoured this, Si. Caillanx secured a suspension of the sitting to decide the question, the motion having so incensed the Socialists that M. Auriol. former Finance Minister, and several of his colleagues left the Chamber.

M. Cardey's speech amounted to a funeral oration for the Popular Front. He argued that M. Blum would have used plenary powers for coercion and nationalisation instead of ' for national recovery.

Later M. Gardev testified how touched he was by the compliment of posting the motion, but as it might create a fresh Parliamentary conflict he begged the Senate to cancel'the decision which, after consultation, was done. Fistic Clash of Deputies. The Chamber of Deputies resumed its sitting last evening when M. Schmidt, recorder for the Finance Committee, stated that the Government's financial proposals had the full support of the United States and Britain. It was believed that the Government contemplated a fall from 110 to 125 francs to the pound.

M. Schmidt added that the Government proposed to increase the inconje tax and certain indirect taxation and railway rates.

The Chamber ultimately adopted the bill by 374 votes to 206.

The sitting was suspended at 1.30 a.m. owing to disorder among the Communists. The deputies immediately raced to the refreshment room where angry arguments culminated in fighting with fists between Communists and Right Wing deputies. They were separated by the Sergeant-at-Arins.

When the sitting W&s resumed at 2 a.m. Right Wing deputies demanded the suspension of the Communist fighters. This caused pandemonium, with deputies screaming insults at one another. Feeling ran so high that M. Herriot again suspended the sitting. Further Uproar Caused. On the Chamber again resuming the sitting, a Communist, M. Ramadier, asked to be allowed to speak, but M. Herriot refused, declaring that the Chamber had more important things to do. This caused further uproar and another short suspension of the sitting.

M. Bonnet, Finance Minister, said: "I am determined to balance the Budget before the end of the year." He insisted that France no longer had the choice between various solutions. . She must give the present Cabinet full powers to stop the drain of gold from the country.

"The maintenance of peace in Europe depends upon a strong France," Baid the Minister, "and to be strong, France must have healthy finances."

M. Bonnet is also reported to have told the Finance Committee that he will meet the Treasury's obligations during the year at least partly by raising the upper limit of the Government's current account with the Bank of France by £100.000,000 to £150,000,000. He said the ordinary Budget showed a deficit of £70,000,000, which will be covered by new taxation.

It is regarded as certain that the Government wishes to be able to devalue further if necessary.

Financial circles in Paris anticipate that the franc will be allowed to fall to 130 or 135, later being suddenly brought back to 125, thereby confounding speculators and encouraging repatriation of French capital.

TRIPARTITE PACT.

PRANCE AND WITHDRAWAL.

WASHINGTON, June 30.

The French Government has notified the United States Treasury that it contemplates withdrawing from the tripartite agreement. The French Embassy explained that the notice was simply "a desire to fulfil the terms of the agreement by an exchange of views before any action tending to upset the currency ratios.

The notice was not to be interpreted to mean the devaluation of the franc.