IN THE BALANCE

Dominion, Volume 19, Issue 255, 12 July 1926, Page 7

IN THE BALANCE

FRENCH GOVERNMENT SAVED CHAMBER’S VOTE OF CONFIDENCE EXTRAORDINARY POWERS REQUIRED By Telegraph.—Press Association, copyright. Paris. July 9. The fate of the new Government is in the balance, and it is agreed that today’s debate will be decisive. It is considered that the Socialist plan of a capital levy has ceased to count after M. Caillaux’s speech. It is estimated that the Government can rely on 230 votes, but a dubious factor is the attitude of the Moderates, under M. Marin, who has not yet participated in the debate. In the meantime the franc in London is rather better at 187.37 to £l, with the Belgian franc at 199.25.—Reuter. MAJORITY OF 22 VOTES (Rec. July 11, 5.5 p.m.) Paris, July 9. The Chamber of Deputies adopted a motion of confidence in the Government by 269 votes to 247. Before the Chamber voted, M. Caillaux (Finance Minister) declared that the Washington debt agreements and also foreign loans were necessary to France’s personal restoration. Fie explained that the extraordinary powers the Government required did not imply the imposition of taxes without the consent of Parliament, but merely simplified and accelerated the procedure. M. Caillaux will fly to London on Monday to pursue his conversation respecting the debt!, with Mr. Churchill. The “Temps” states that M. Caillaux now proposes to introduce immediately a Bill containing only one. clause, substantially authorising the Government to take by decree all necessary measures to maintain the equilibrium of the Budget and stabilisation of the franc. An annexe to the Bill contains a list of measures it is proposed to enforce.— Reuter. EFFORT TO CREATE NEW FRANC (Rec. July 11, ILS p.m.) London, July 10. The “Observer’s” Paris correspondent states that though the majority was narrow, the confidence will enable M. Caillaux to negotiate for ameliorated terms in the Washington and London debt settlements, but the Government is still without the chamber’s sanction of the fiowers it is seeking for financial reforms by decree. The correspondent emphasises that the confidence vote authorises the Government to attempt a scheme of monetary stabilisation. •‘From this viewpoint,” be says, *4t may be described as the meat important financial decision since the war, perhaps the most important for a century, for it means an effort to create a new franc.” Despite the vote, the franc to-day depreciated to 188 to £l.—.Aus.-N.Z. Cable Assn. INTERNATIONAL CONFERENCE MOOTED Paris, July 10. Tt is reported in German financial quarters that an international finance conference will shortly he held in Berlin. Tt is stated that France is disposed to make concessions to Germany if the Reichsbank joins the British and American efforts to stabilise the franc. —Aus.-N.Z. Cable Assn.