THREE BANKS FAIL

Dominion, Volume 24, Issue 143, 13 March 1931, Page 9

THREE BANKS FAIL

Finances of Air Company GRAVE DIFFICULTIES French Minister Resigns r- *» GOVERNMENT MAY FALL % By Telegraph—Press Assn.—Copyright (Rec. March 12, 10.30 p.m.) London, March 12. Tlie “News-Clironicle’s” Paris correspondent states that the resignation of the Finance Minister, M. Fladin, possibly involving the fall of the Laval Government, is likely to follow the suspension of payment by three Franco-South American banks. These institutions have been financing the Compaguie Generate Aero Postale, which operates an air line between Paris and South America. This company is involved in grave financial difficulties. It is a coincidence that the previous Government, which held office in Franco for any length of time—that headed by M. Tardieu—was obliged to resign following the failure of the Oustric Bank and the arrest of its principal. That was on December 3of last year. M. Poincare refused to form a Cabinet, and M. Barthau stepped forward, only to abandon the idea a few days later upon meeting with Radical opposition. Then M. Steeg, 62 years of age, and a veteran Cabinet member, stepped forward, but his Government fell on January 23 after beingf defeated on an issue involving the importation of wheat. Four days later M. Laval appeared on the scene and formed the Cabinet that is in power today, and that, in its turn, is being threatened.