FRENCH FINANCE.

Hawera Star, Volume XLV, 29 June 1925, Page 4

FRENCH FINANCE.

ADJUSTMENT PR OPOSALS

CARRIED BY CHAMBER

FIGHT BY SOCIALISTS.

BY CABLE—PRESS ASSOCIATION—COPYRIGHT. PARIS, June 26. In the Chamber, M, Caillaux (Minister for Finance) submitted financial proposals to increase by six milliard francs the advances by the Bank of France to the -State. The maximum issue of bank notes would be correspondingly increased by six milliards to fifty-one milliards. The issue of the 'pan would be reserved to holders of national defence bonds with a guarantee against fluctuating exchange and the Tate of interest. The maximum total of the floating debt will be fixed at the amount attained on closing the aforementioned loan excluding the six milliards advances to the State and any. sums requisite lor the Subsequent repayment of the short term debt. The preamble of the Bill draws attention to. the difficulties of the Treasury, and says that in order to meet the situation the Government is determined only to -resort to- normal methods, rejecting any system of constraint, and makes a supreme and urgent appeal to the nation to freely help to relieve the Treasury’s difficulties and dispel anxiety regarding the future. The Finance Committee of the Chamber, after hearing M. Caillaux, rejected the Socialists’ proposal fo,r a capital levy by 21 votes to 14, and adopted the Government Bill with modifications. The Socialists decided to maintain their demand in the Chamber.

The first clause of the Finance Bid was passed by the Chamber, a Socialist amendment being rejected by 340 votes to 210. A Communist amendment was also defeated by 421 votes to 29. The Premier (M. Painieve) then declared that the question was one of confidence, and the Chamber agreed to increase by six milliards the note issue tv 328 votes to 118. Most of the Socialists abstained from voting. The Chamber then passed the whole of the proposals of M. Caillaux by 330 votes to 34.

The Finance Committee of the Senate, by 9 votes to 5, with eleven absentees. 'adopted the proposals of M. CaiPaux. The .Senate passed the Government’s financial Bills by 273 votes to 11.

LONDON, June 27. In the foreign exchange market the French Government’s proposals caused a further heavy .slump in French francs, which c'osed at 106.62.

Belgian francs are quoted at 107.20. The Italian lira, also gave wav, closing at 135.18.