FRENCH FINANCE.

Hawera Star, Volume XLVIII, 7 April 1925, Page 7

FRENCH FINANCE.

NEW MINISTER’S PLANS

FOR RESTORING STABILITY

VOLUNTARY CAPITAL CONRIRUTION.

BY CABLE—PRESS ASSOCIATION—COPYRIGHT

Received April 7, 12.5 p.m. PARIS, April 0. M. Demon/,ie, the new Minister for Finance, has submitted to Cabinet Bills with which he proposes to improve Lhe financial situation of the State Treasury. The first authorises the Banque du France to issue tour milliards of new banknotes. This is an to within torty-fi vc* milliards of the limit fixed for the issue of banknotes, which at present is forty-one milliards. This will be met b v exceptional voluntary contribution from capital, the amount of which will be fixed’ in principle at 1<) per centum. This contribution will he productive of interest at 4 per centum, and all Treasury bills will he accepted for payment at current - market rate with a slight bonus. The product of the exceptional contribution will be applied to the redemption of debt. M. Demonzie only contemplates a Levy on capital as a last resort, in tne event of the foregoing proposals being refused. M. Demonzie ask'ed for the debate in the Chamber on his Bill to take place to-morrow, /When the adoption will lie made a question of confidence. , Cabinet discussed. M. Demonzie s proposals in the morning and adjourned till the evening, and meets again to-morrow morning. This delay in reaching a decision is attributed to M. Herriot’s desire to. confer with Socialist leaders, as the idea of a voluntary capital contribution is opposed to the Socialist idea of a compulsory levy. M. Millerand ha s joined the Poincarist senatorial group, known as the Republican Union. In acknowledging the chairman s welcome, lie said that their task was to restore national concord. i Millerand, on taking his seat in the. Senate, was received with cheers from the Centre and jeers and shouts of “renegade” from the Left.— Reuter.