Desperate Situation

Hawke's Bay Tribune, Volume XVI, Issue 87, 29 March 1926, Page 5

Desperate Situation

French Finances PREMIER’S ANXIOUS INQUIRY. NEW TAXATION PROPOSALS. IBy Cable—Press Association—Copyright? Paris, March 27. Al. Bria nd unexpectedly visited the Senate. He appeared upset over the fall of the franc, which, he remarked, was most unfortunate. He anxiously inquired as to the prospects of the Senate’s acceptance oi the Government’s financial proposals. Earlier in the day a statement was made to the Chamber’s Finance Committee by M, Peret, Minister of Finance, in which he said money must be collected by the Treasury immediately and must be collected every month. Newspapers consider this statement in some measure contributed to the franc’s sensational fall. On the other hand it may save the life of the Government, because no combination is willing to take over the desperate situation. - (A. and N.Z.) NEW TAXES INDICATED. Faris, March 27. The Chamber Finance Committee agreed to new taxation yielding an estimated revenue of 1380 million francs, including a profits tax from the conveyance of real property, increased tax on the sale of business and doubling the turnover tax on firms whose figures exceed 1,000.000 francs. It is understood the Finance Minister, M. Peret, is willing to accept a compromise proposal to make up the remaining deficit of over a milliard francs by a general turnover tax exclusively confined to wholesalers and middlemen.—(Reuter). UNEXPECTED RELIEF. (Received 29, 10.50 a.m.) Paris, March 28. The political and financial situation has drastically transformed the Government’s late, which, on Friday, seemed sealed owing to the Socialists and Radicals opposing an increase in th© business turnover tax, upon which the Government insisted. But on Saturday Al. Peret suddenly informed the Finance Committee of th© Chamber that lie had given up this tax and would instead submit proposals for an increase on certain indirect taxes, especially wines, beers, spirits, and certain stamp duties. Al. Peret asked for a little time to put the finishing touches on the new project, and the committee readily agreed. Thus the anti-Government majority on the turnover tax was averted at the eleventh hour. STATE MONOPOLIES PROPOSED. An amendment by Deputy Margaiue in favour of a state monopoly of petroleum and sugar which was adopted by the Finance Committee, provides for the state control of the importation of raw’ petroleum and its derivatives and sugar from January 1, 1927, but it is now certain Parliament will not pass it.—(Reuter,)’