OUTSPOKEN MINISTER

Dominion, Volume 29, Issue 227, 22 June 1936, Page 9

OUTSPOKEN MINISTER

Position of French Finances

GOVERNMENT’S? PLANS

Paris, June 19.

In the course of an outspoken account of France’s finances, the Minister of Finance. M. Auriol, dismissed devaluation as an economic panacea and emphasised that the Government desired the nation to save itself and the currency. It was estimated that £338.000.000 worth of French capital had been exported since January last year, and that £78,000,000 in gold and £390,000,000 in notes had been hoarded. The Budgetary deficit stood at between £78.000,000 and £91,000,000. Revaluation of the gold stocks of the Bank of France would yield only £212,000,000, of which £186,000,000 had already been bespoken. M. Auriol announced that the Government is issuing short-term bills of small denomination in which the man In the street could invest. Meanwhile the Government, publicly and without by pocrisy, was seeking a loan from the Bank of France.

The Finance Minister is tabling two Bills providing penalties for concealing funds abroad, authorising the Minister severely to repress action prejudicing the State, and empowering Cabinet to promulgate decrees ensuring that the Bank of France will respect the economic interests of the nation.

The Minister stated that the Government did not intend to nationalise private banks, but to control them and prevent abuses. M. Auriol bluntly told the Communists that a capital levy was impossible and would kill the French Treasury, but taxation would be reduced to a few simple imposts which would be rigorously collected. BOLDNESS PRAISED Improvement in the Franc Loudon, June 19. The Paris correspondent of “The Times” says that M. Auriol deeply impressed the Chamber with his lucidity and frankness, and all agree that he deserves credit for his boldness. His proposals mean financial ■ revolution, which might be dangerous, but they are likely to be of incalculable benefit t<> France. The franc has improved sharply as a result of the speech. M. Auriol added that the Government did not propose formal control of exchange, but speculators would be taught a severe lesson, especially those who were depositing securities abroad. They were double traitors.