TWO-DAY MINISTRY.

Grey River Argus, 23 July 1926, Page 5

TWO-DAY MINISTRY.

HERRIOT IN THE DISCARD Poincare to Try. WILL BANK OF FRANCE SUSPEND? (Received July 22 at 5.5 p.m.) PARIS, July 22. The Herriot Ministry was defeated, after two days’ office, on a vote of confidence. The voting- was:— Pot the Government 237. Against 290. Majority Against 53 The Government's resignation followed and caused tremendous excite- \ inent, crowds hooting M. Herriot and cheering his defeat, and demanding a dissolution. Before the vote the excitement in the Lobbies and Chamber was more intense even than yesterday. A feature of the situation has been the ten dency towards further splitting the parties. In a packed Chamber, M. Herriot read the Ministerial policy declaration stating that the Government had im mediately concentrated its attention on the financial problem. Immense difficulties were ahead and the Gov eminent Considered it necessf/Ty to meet these difficulties, even the most pressing, in the closest conjunction with Parliament France intended 1° * pay the debts she had contracted in ( defence of her liberty. “We absolute ly refuse te resort to any increase in the limit of our note circulation, and reserve to ourselves absolute indepen donee. Our object is to stabilise the franc.” M. Herriot’s declaration was met with a very cold reception, and defeat followed. STATE CREDIT LIMIT, DEMONZIE’S “HEROIC” MEASURE. (Received July 22 at 8.40 p.m.) PARIS, July 22. After the vote, all the Ministers walked out of the Chamber except M. Demonzie (Treasurer) who asked the Chamber to vote immediately a Bill authorising the Bank of France to use part of the Morgan credits to enable the State meet its obligations. The sitting was then suspended while the Finance Committee discussed the Bill. M. Demonzie created a sensation when he read a letter from the Governor of the Bank of France, stating that the country’s balance is now only sixty million francs, which would be absorbed within one day, thus putting the Bank under the necessity I of stopping the payments to the Treaty sury. M. Demonzie declared that panic on the Bourse had been deliberately organised. He added that if the Morgan Credits Bill were not passed, he personally would take the responsibility of authorizing the Bank of France to sell part of the loan in question in order to save the Bank from suspending payments on the Treasury's account, even if he afterwards were arraigned before the High Court.

DEMONZIE’S PLAN AUTHORISED. CURRENCY LIMIT EXTENDED. (Received July 22 at 10 p.m.) PARIS, July 22. At a night sitting of the Chamber of Deputies adopted a bill authorising the Finance Minister to arrange an agreement with the Bank of France under which the Minister is to return to the Bank the currencies held by the Treasury, and also authorising an increase in the limit of the note issue by a sum corresponding with the sale of the currencies, which will be carried out. M. Demonzie subsequently explained that the credit balance had been in. creased from 60 millions to 150 millions. TH IT DEFEAT POPULAR. _ PARIS, July 21. Crowded streets greeted M. Herriot’s downfall, with cheering and boisterous execrations. The police had difficulty in scattering the feverishly excited mobs. Ex-Premier Poincare. CALLED TO THE RESCUE. (Received July 22 at 10 p.m.) PARIS. July 22. M. Poincare (ex-Premier) has been asked, and has undertaken to form a Ministry. WHAT WILL IT BE?

COMMITTEE OF PUBLIC SAFETY? LONDON, July 21. The “Daily News’s” correspondent predicts the formation of a committee 1 of Public Safety in Paris. (Received July 22 at 5.5 p.m.) PARIS, July 21. There is a movement growing m intensity in favour of a Dictator, or n Committee of Public Safety, invested with plenary powers. (Received July 22 at 8.40 p.m.) (Reuter.) PARIS, July 22. M Poincare’s Government will most likely be in the nature of an Erne - gency Committee, composed of only half a dozen Ministers. NATIONAL COALITION MOVE PARIS, July 21. Pnrlieal Socialists

promote the idea of the Ministry of National Union. PARIS, July 22. Mu Morinaud, a Republican Socialist Deputy, has formed a group of over three hundred members of the Chamber of Deputies, from which are excluded the Socialists and Communists. This group aims at salvation of Republic by means of a Ministry of National Union. BUSINESS PANIC RUSH TO BUY AHEAD OF SLUMP. PARTS. July 21. M. Poincare has undertaken to form a Cabinet. The panic among the investors, shopkeepers and business people generally continues, and it has now spread, to the public. The shops throughout the city arc beseiged by crowds of purchasers, fearing a rise in prices will follow the slump, they have rushed to buy vast quantities of foodstuffs, clothes, and. wines. The demands are so heavy that many of the shops have rationed their supplies, and have refused to sell more than one article of clothing or other goods. Foreigners, mostly Americans have again been the victims of angy crowds. Carrots were thrown at some 'of the tourists by the women carrot vendors. 1 THE FALL OF THE FRANC.

LONDON, July 21. The franc exchange rate opened at 244. LATER. Francs closed as follow:— French, .’l9/50; Belgian 213/50. NEW YORK FEARS. NEW YORK, July 21. Scores of stocks broke from two to eight points to-day, after there had been heavy selling, which was inspired by the publication of reports that the Bank of France may be forced to suspend payment to-morrow, because the note circulation or the Bank’s advances to the State had reached the legal maximum. Francs lost half of their opening gain of 20 points. Herriot Execrated. PARIS WILDLY EXCITED. FACISTI PARADE. (Received July 22 at 9.5 p.m.) LONDON, July 22. With M. Poincare already busy forming his Cabinet, it is scarcely worth narrating how M„ Herriot’s two-day’s ministry fell. As the “Daily Chronicle’s” Paris correspondent says: “It expired without tears or lamentations, and there were no followers for the seventh French Cabinet to fall within 15 ’'

The correspondent continues:—“M. Herriot and M. Demonzie revealed themselves barren of ideas, and the strange spectacle was witnessed of the same deputies cheering Caillaux who two days’ ago encompassed his defeat. So incensed was the populace that it might have manhandled the fallen ministers, if the police had not energetically intervened to protect them. Thousands of demonstrators were still before its Chamber at midnight, singing “The International,” and “The Marseillaise.” Police and military reinforcements were called out, and the streets were patrolled. The public buildings and the Elysee were strongly guarded, and the cafes and the night establishments were hastily closed down.” “Bands of Fascisti paraded in force, shouting “Down with the deputies!

J Long live the dictatorship!” He adds: —“An impression prevails that M. Poincare’s cabinet will be composed of only five or six members, and M. Caillaux, M. Albert, Sarraut, M. Barthou and M. de Jouvenel are four mentioned.” ' THE BANK OVERDRAFT EXHAUSTED. (Received July 22 at 7.10 p.m.) (Reuter.) PARIS, July 21. Following the rejection of the vote of confidence in the Herriot Ministry, M. Demonzie (Finance Minister) announced that the 38 millions of francs, which was the maximum amount that the Banque de France could legally advance to the State was exhausted within sixty million francs.