CRISIS IN FRANCE.

Press, Volume LXI, Issue 18578, 31 December 1925, Page 7

CRISIS IN FRANCE.

FINANCIAL PROPOSALS. TO COME BEBORE CHAMBER. (BY CABLE—PRESS ASSOCIATION'—COPYRIGHT.) (BXOTZB's TXLEOBAHB.) PAJRIS, December 29. The Ministers' Council bavo reached an agreement. M. Doumer has been authorised to table his financial proposals in the Chamber of Deputies. THE LOCARNO SPIRIT. (heuteb's TELEGKAJJS.) PAKIS, December 29. It iss semi-officially stated that the Cabinet agreement in regard to M. Doumer's proposals was unanimous. M. Briand said they had introduced tho Locarno spirit into tho Ministerial Council, and an agreement had been reached on all points in an atmosphere of perfect cordiality. BUDGET DEFICIT. NEW TAXATION. PABIS, Decembor 29. M. Doumer estimates the deficitl in the 1926. Budget at 9,000,000,000 francs, including 2,500,000,000 for the amortisation of the public debt, and 2,000,000,000 for the repayment of advances made by the Bank of France to tho Treasury. M. Doumer proposes to meet the deficit by a special "tax of one-twentieth per cent, on all business payments (which is estimated to produce 3,800,000,000 francs), and by applying tho increases in tho income-tax voted on December 4th to tho Budget instead of for tho re-absorption of inflation (estimated to produco 3,000,000,000 francs), and an increase in tobacco duties, which will produce 1,000,000,000 francs. M. Doumer , also hopes to recover 3,000,000,000 francs from tax evaders, to save 200,000,000 francs on Government expenditure, to obtain 600,000,000 francs from a tax on exports, and 100,000,000 from an increased tax on Stock Exchange operations. The new taxes proposed by M. Doumer are indirect taxes. The Eadical members of the Cabinet are opposed to an increase in indirect taxation on the ground that it bears unfairly on tho poor. / M. Doumer expresses the opinion that three milliard francs of M. Loucheur's taxes, which he is incorporating in the 1926 budget, will form the high-water mark of direct taxation, and direct taxes cannot be collected quickly, whereas the money is needed immediately.