State’s Coffers Are Empty

Manawatu Times, Volume 60, Issue 132, 7 June 1935, Page 7

State’s Coffers Are Empty

FASCISTS COMMENCE MARCH ON PARIS. Received Thursday, 10 p.m. LONDON, June 6. The Daily Herald’s Paris correspondent says M. Flannery, Governor of the Dank of France, in an interview with M. Laval, said only if the new Government were prepared to adopt a programme of drastic economies would the Bank rediscount the Treasury Bills due on June 15. The Treasury would then be empty, a financial panic would ensue and it would be clear to the public that the Government was responsible for the disaster. When the Radicals learned of the ultimatum and gathered that M. Laval’s only chance of forming a Government was to accede to the bank’s demands they refused their support. M. Laval’s reply was to tell President Lebrun that he was unable to form a Cabinet. Meantime the parties of the Left, ranging from Radicals to Communists, also became aware of the issue between the bank and Parliament. Columns of motor-cars filled with ex-soldiers of the “Fiery Cross” organisation, which is of Fascist origin, are on route to the capital from Cambrai and other places with the intention of a demonstration to-day. The police fear clashes. Mobs paraded the boulevards shouting: “Down with Parliament!” “To the gallows with the Deputies!” There were frequent clashes with the police before they were dispersed. The Daily Mail’s Paris correspondent says the Treasury lacks ready’ money, yet the Government must secure £200,000,000 before January 1, 1936, for urgent expenditure. Moreover, heavy commitments for June 15 must be faced during the next few days, and in this connection M. Laval has consulted the financial experts.

Unstable Franc Steadied by Britain

LONDON, June 5. The Daily Telegraph’s City editor says that the operations of the British Exchange Fund again checked a tc-

lapse of the franc, stopping in 'when it fell to 75 3-8 and restoring it to 75 3-10, but the franc, delivery in three months, is quoted at 79.