FRENCH FINANCES

Evening Star, Issue 22688, 30 June 1937, Page 11

FRENCH FINANCES

GOVERNMENT LEGISLATION MINISTER WANTS UNLIMITED POWER Press Association—By Telegraph—Copyright LONDON. June 29. It is officially announced that the Paris Bourse closed to-day until a date to be fixed by the Minister of Finance (M. Bonnet). It is understood that the object of the closure is to check speculation while the Government’s financial legislation is being debated. According to the Parts correspondent of the ‘ Daily Mail,’ M. Bonnet intends to demand unlimited powers. A message from New York states that the Secretary of the United States Treasury (Mr Henry Morgenthau, inn.), in a statement to the ‘ New York Times,’ said that there was no change in the tripartite agreement caused by the French situation. This is interpreted to mean that Britain and the United States are co-operating to offset any international repercussions arising from the French monetary crisis. PROPOSALS APPROVED BY CABINET TO BE RUSHED THROUGH , PARLIAMENT. PARIS, June 29. (Received June 30, at 11.5 a.m.) Cabinet has approved M. Bonnet’s finance proposals, which will be rushed through Parliament in 24 hours. A meeting of Radical Socialists has expressed absolute confidence in the Government. The Socialists have not decided on their attitude. Before a crowded Chamber of Deputies M. Chautomps read a Ministerial statement and announced that he would not leave the Chamber or the Senate until the necessary Bills were approved. The Premier declared that he held a decree for adjourning Parliament. Ho asked the Chamber to postpone its debate on general policy and proceed to the Bills granting the Government full powers. The Chamber passed a vote of confidence by 393 votes to 142. The sifting was suspended to allow the Finance Committee to examine M. Bonnet’s proposals. ONE-CLAUSE BILL PARIS, June 29. (Received June 30, at 11.45 a.m.) The Finance Bill consists of one clause —“ The Government is authorised until August 31 to take, by the decrees previously adopted by the Council of Ministers, all measures to assure suppression of attacks on State credit, fight again speculation, assure economic recovery, control prices, balance the Budget, and defend the gold reserve without control of the exchanges. The decrees will he submitted to the Chamber for ratification within three months of publication of the present law.” FRANC TO FIND OWN LEVEL NO GOLD IN EQUALISATION FUND. PARIS, Juno 29. (Received June 30, at 1 p.m.) Startling figures showing France’s financial plight were given by M. Bonnet before the vote on his proposal,, which was ultimately approved by 20 votes to 15, with eight abstentions. M. Bonnet revealed that £47,250,000 worth of gold left the country between June 1 and June 22, and £22,250,000 worth of gold between June 23 and yesterday. There was only £182,000 in hand that morning, and the Government had been obliged to borrow £3,036,000 from the autonomous State fund. He proceeded that it was impossible to maintain the franc at the present rate. The Government proposed to allow the franc to find its own level. M. Bonnet revealed that the franc equalisation fund no longer had gold on hand. It is expected that M. Bonnet at a later stage will denounce the threePower monetary agreement with the assent of Britain and the United States. This would eliminate the necessity of maintaining the equalisation fund, which at present holds about £IOO,OOO, 000 in bank notes, but, as stated above, no gold.