ANOTHER CRISIS.

Press, Volume LXII, Issue 18591, 16 January 1926, Page 13

ANOTHER CRISIS.

DISPIRITED FRANCE. FURTHER FINANCE TANGLE, I (BY CABLE —PRESS ASSOCIATION COPYRIGHT.) I ' ( 'THE TIMES.") LOXDOX", January 14. The Paris correspondent of "The Times" states that France is again ' perilously near a new political crisis as ' a result'of the Chamber of Deputies' Finance Committee's decisive rejection of M. Doumer's carefully-prepared scheme. This has had a dispiriting effect upon public opinion, while the impression produced in business circles may be judged from the sudden drop in the , franc to 130. It is very difficult to foretell how tho situation will now develop. The Press is very reserved, and there is almost a complete absence of comment on the Government's predicament. M. Doumer's resignation is freely predicted, but well-informed political opinion does not take such a tragic view, believing that M. Briand, fully aware of .his great authority, will stick to M. Doumer's scheme, and endeavour to get the Chamber's acceptance of it, in spite of the committee's rejection. [The need for the imposition of heavier taxation, and the stubborn lefusal of first one and then another section to accept the various proposals which have been made, has led to a series of grave political and financial crises in France, with the franc slipping downwards the whole time. A temporary respite was gained by M. Briand taking over the Prime Ministership and appointing M. Doumer as Finance Minister. M. Doumer planned to bring m increased taxation totalling 8,800,000,000 francs. He proposed an extraordinary temporary tax of l-20th per cent, upon gross takings, bringing in 3,800,000,000 francs, which is much the same as the turnover tax, but the verbal chancres enabled dissentients to save their" faces. He estimates the deficit in the 1.026 Budget at 0,000,000,000 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 the Treasury. " He further hoped to recover 3,000*000,000 francs from tax evaders, to save 200,000,000 francs on Government expenditure, and to obtain 600,000,000 francs from a tax on exports, and 100,000,000 from an increased tax on Stock Exchange operations.] RIVAL PLANS. (RECIER'S TELEGRAMS.) (Eeceived January 15th, 7.15 p.m.) PARIS, January 14. After practically rejecting the Government's financial proposals, and approving of the counter scheme submitted by the Left Cartellists, the Chamber Finance Commission agreed to defer the Government's wish to draw up a report tv. enable the Chamber to decide between tAe rival plans. POINT OF DISAGREEMENT. (REUTER'S TELEGRAMS.) PARIS, January 14. The Finance Committee of the Chamber rejected by 21 votes to 5 Article IS of M. Doumer's Finance Bill, taxing commercial transactions. The Article is considered the cornerstone of M. Doumer's project, and its rejection is regarded as tantamount to throwing out the entire Bill.