M. BLUM MEETS OPPOSITION

Press, Volume LXXIV, Issue 22370, 6 April 1938, Page 9

M. BLUM MEETS OPPOSITION

Financial Proposals Examined

REJECTION BY SENATE THOUGHT CERTAIN (united press association —coptright.) (Received April 5, 9 p.m.) LONDON, April 5. The Cabinet adopted M. Leon Blum’s financial bill without modification, authorising the Government to decree measures for national defence, to protect the gold stocks of the Bank of France, and to carry out the country’s financial and economic recovery. It is understood that possible measures include a capital levy tax of from 4 to 17 per cent, for defence, higher income tax and customs tariff. The Paris correspondent of “The Times” says M. Blum’s financial proposals are so sweeping and contentious that, even if the Radicals confirm the decision of their Parliamentary group leaders, who agreed by 28 votes to 22 to support the bill, the Senate is certain to reject them. The Radicals’ feeble majority included eight Ministers, who were naturally desirous of averting a crisis, while 25 did not vote.

The Minister for War (M. Edouard Daladier) at the Cabinet meeting said the peasants were being asked to make sacrifices which the industrial workers would not suffer. The Finance Commission of the Chamber of Deputies accepted the bill by 25 votes to 18, but insisted that the exemption limit for the capital levy be raised from £6OO to £9OO.