LATE NEWS DEFENCE OF FRANC

Evening Post, Volume CXX, Issue 132, 30 November 1935, Page 10

LATE NEWS

DEFENCE OF FRANC

LAVAL'S POLICY

NO DEVALUATION TO PLEASE

BANKERS

VOTE OF CONFIDENCE PASSED

United Press ' Association—By Electric Tcta< erapb—Copyright. (Received November 30^2.15 pan.), PARIS, November 29. France is ready-to consider-devalu-ing the franc to a lower gold basis it sterling arid the dollar are stabilised, but cannot align the franc with, melting currencies, declared M." Reghier, Minister of Finance, in defending M. Laval's finance policy in the Chamber of Deputies. He added that the franc was being subjected to violent attack, and every minute that was lost discussing policy increasingly endangered the currency. "I won't devaluate to please ths bankers^ as in the event of devaluation the middle classes would bear the brunt," he said. • . ■ The Minister characterised the flight of gold since November 4 as catastrophic, and added that to avoid chaos the Government was prepared to defend the franc against every attack and speculation until the last moment. M. Regnier was replying to a speech by M. Reynaud, a-former Minister of Finance, favouring devaluation, in which he declared the Government was trying to keep the gold reserves by an overvalued currency, a policy in which it was impossible for any Government to succeed. COMPARISON WITH OTHER COUNTRIES. . M. Reynaud contended that an overvalued currency disorganised the economic fabric owing to its effect on prices. He added that general currency stabilisation, extension of credits, great reductions in taxes, even an end to the Abyssinian war, were all mirages as far as the crisis was concerned. England and Vunerica : had practically overcome th<; depression by devaluation, while Friince was still in a slough of misery and unemployment was increasing. M. Blum announced that the Socialists would vote against! the Government because they disagreed with the entire programme. ' M. Dean (Socialist) declared that M. Laval's polioy was producing a danger of civil war. . In replying, M. Laval recalled Britain's use of economies, which'he also had adopted in order to overcome the crisis. He added that Britain after four years had been able to repay the nation for the sacrifices it had made, and he believed France would recover more swiftly. ■ The Chamber passed a vote of confidence in the Government by 325 votes to 247—a larger majority than was expected—causing a belief that M. Laval will be similarly successful with other issues. ■■:■.