FULL POWERS

Evening Post, Volume CXXV, Issue 80, 5 April 1938, Page 11

FULL POWERS

FRENCH GOVERNMENT

A FURTHER EFFORT

CABINET APPROVES

(United Press Association—By Electrta Telegraph—Copyright.) (Received April 5, 9.30 a.m.)' PARIS, April 4. Cabinet adopted M. Blum's Financial Bill, without modification, authorising the Government to issue decrees for measures for national defence, to protect the gold stocks of the Bank of France, and to,carry out the country's.financial and economic recovery.

It is understood that possible measures include a capital levy, a tax of 4 to 17 per cent, for defence, higher income tax, arid increases in the Customs tariff. '

The powers sought in Mi, Blum's Financial Bill are practically those upon which the French . Legislature differed in June last year, resulting in M. Blum's Popular Front Ministry resigning. -The (Senate refused to sanction M. Blum's Bill in which full powers were demanded to, deal with the financial situation., The Government demanded an authorisation to take by decree all the necessary steps to assure restoration of . public confidence and to combat attacks on currency and public credit. The Bill was passed by the Chamber of Deputies, mainly,as a result of the support of the Communist' Deputies, who had previously decided to abstain from voting. The Bill was emasculated by the Finance Committee of the Senatej which limited the scope of tHe legislation to the suppression of speculators and fiscal frauds. M. Blum was under . double pressure, by the Communists and by the Kadicals,; and the Senate', remained under the domination of the Radi-cal-Socialists.: Being assured ofI'the support of the Socialists, the largest party in the Chamber," M. Chautemps formed a Cabinet, which included M. Blum

A month ago M. Chautemps's Cabinet resigned because the Socialists and Communists refused to grant special powers to ensure the success ql the national defence loan, and M. Blum again agreed to take office." , ,