FRENCH FINANCES

Evening Post, Volume CXXI, Issue 145, 20 June 1936, Page 9

FRENCH FINANCES

NO DEVALUATION "NATION MUST SAVE ITSELF" CONTROL OF TRIVATK BANKS Viutert I'rcss Association —By Electric IVlrgraph—Copyright. e (Received June 20, noon.) Y PARIS, June 19. f In llie course of an outspoken account of France's finances, the " Minister of Finance, M. Auriol, dis--1 missed 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 l since January last year, and that r £78,000,000 in gold and £390,000,000 - in notes had been hoarded. The * Budgetary deficit stood at between I £78,000,000 and £91,000,000. Re- * valuation of the gold stocks of the t Bank of France would yield only - £212,000,000, of which £186,000,000 1 had already been bespoken. ! SHORT-TERM PUBLIC LOAN. [ M. Auriol announced that the Gov- . ernment is issuing short-term bills of * small denomination in which the man 1 in the street could invest. Meanwhile the Government, publicly and without hypocrisy, was seeking a loan from : the Bank of France. The Finance Minister is tabling two 1 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. CAPITAL LEVY IMPOSSIBLE. 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. LUCID AND FRANK AUEIOL IMPRESSES BENEFICIAL PROPOSALS (Received June 20, 12.45 p.m.) LONDON, 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 to 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.