TROUBLE FEARED

Hokitika Guardian, 7 June 1935, Page 5

TROUBLE FEARED

FRENCH SITUATION

FINANCIAL crisis continues

(United Press Association—By Electric Telegraph—Copyright).

LONDON, June 6

The “Daily Herald’s*’ Paris correspondent says M. .Elanncry, th e Governor of the Bank of France, was interviewed by M. Laval. M. Flannery said that only if the new Government were prepared to adopt a programme oi drastic economics would the Bank of France re-discount the Treasury bills due on June 15'. He added that the Treasury then would ibe empty and va financial panic would ensue, and then it would .be clear to the public that the Government we r e responsible for the disaster. •When the Radicals learned of the ultimatum of the Bank and thus gath ■ ered that. M. Lavel’s only chance of forming a 'Government was to accede to the Bank’s demands, they refused him their support. . . M. ’Levels’ reply was to tell President Lebi-um that he was unable to form a Cabiu c t. The police dispersed a Royalist d c ‘ monstration. They arrested pight. A gang of unknown men smashed the windows of “The Petit Jourimal,” which champions ,the devaluation of the franc. They also attacked the (Masonic headquarter*;

■The Socialists in the Chamber of Deputies have issued a manifesto con demning the granting of plenary Powers, and demanding the following: The nationalisation of the key industries and possibly of tfle Bank of France ; The dissolution of semi-mili-tary leagues; The dissolution of the ■Chamber, of Deputies, with a view of holding an election on the basis of proportional representation.

M. LAVAL ABANDONS ATTEMPT

TO FORM NEW CABINET

PARIS. June 6

The process of sifting ex-Membci's of Cabinet for a possible new leader continues, while the situation becomes

more critical.

M. Jcanneney has excused ‘himself from leadership, for health reasons. _ M. Laval has abandoned his attempt to form a' Cabinet) because the Radicals would not agree by sufficient majority to support his proposal to limit the plenary powe r s qf the Cabinet. to the defence of the franc. President Lebrun'then consulted MiHerriot, who then departed to sound, the Radicals, declaring that -he was only on the threshold of the task. M(Herriot failed in his quest, and thus proved the truth of liis observation. Columns of motor cars, filled with ex-soldiers, members of the Fiery Cross Organisation, which is Fascist, are now en route to the capital from Cambrai, and from other places, with the intention of making a demonstration to-day The police fear dashes. '

Mobs of ipeople have (paraded the boulevards, shouting, “Down with Parliament!” and “To the gallows with the Deputies!” There were frequent clashes with the police .’before the crowds were dispersed.

M. PIETRI THE NEW LEADER

RARIS, June 6

The differences between the'* Radicals and .Socialists has led to an impasse which seems to clear the path for the Corsican Deputy, M: Pieti’i to lead. He has been Minister,of Marine and 'Minister of finance. He is the latest to accept an invitation to form a Cabin e t. He also demands plenary Cabinet powers, but he is unlikly to complete bis consultations before Friday. He will, if successful, he Premier and Finance Minister.

PIETRI ADMITS FAILURE

(Received this day at 11.30 a.m.) PARIS, June .6.

M. Pietri attempted to form a cabinet, but later stated lie was,.unable to do so.