“SLIPPERY SLOPE”

Greymouth Evening Star, 15 November 1938, Page 7

“SLIPPERY SLOPE”

FRENCH FINANCIAL CRISIS

MINISTER’S GRAVE WARNING

[BY CABLF —PRESS ASSN. —COPYRIGHT.]

(Rec. Nov. 15, S a.m.) PARIS, Nov. 14. Statistics explain the seriousness of M. Reynaud’s warning. He said: “Our fate will be tragic if we don’t act. Make no mistake about it. We are sliding on a slippery slope of an abyss.” The facts are that on the basis of the 1930 figures of world production, France is now at the bottom of the list. Her exports and manufactures have fallen by half. One in every three railway waggons during the last eight years have been idle. The torment of the capitalist is revealed by the fact that in the ten years, he has lost sixty per cent, of his capital. The remainder consists of francs which have lost half their value, even with the revaluation of gold stocks yielding--175 millions sterling, the whole of which will be handed over to the bank to reduce the overdraft. The latter will then stand at 125 millions.

TAXATION INCREASES

(Recd. Nov. 15, 11 a.m.)

PARIS, November 14

Apart from the Socialists’ attacks on the abandonment of the forty-hour week, M. Reynaud’s programme seems to have been accepted with quiet resignation.

The national contribution p-:.hme consists of two per cent, tax on earnings, pensions and annuities in 1939, applied even to incomes below £56, which, hitherto, have been exempt from income tax. Payers are also taxed an additional 30 per cent, on the general income tax, ranging from 16 to 32 per cent. It is also decreed that savings bank accounts must not exceed £ll2, in order to encourage the movement of capital.

A million sterling is being devoted annually to measures to increase the birthrate.

PARTY LEADER RE-ELECTED.

PARIS, November 14. The Democratic Alliance Party at

its conference, re-elected M. Pierre Flandin, president, by 1626 votes to 25.