No Devaluation in France

Manawatu Times, Volume 61, Issue 145, 22 June 1936, Page 7

No Devaluation in France

"Nation lust Save Itself” CONTROL OF PRIVATE BANKS United Press Association—By Electric Telegraph.— Copyright. PARIS, Juno 1!). In the course of an outspoken account of Franco’s iiuauces, the Minister ol Finance, if. AurioJ, dismissed devaluation as an economic panacea and emphasised that the Government desired the natiou to save itself and the currency. It was estimated that £338,000,000 worth of French eap.tal had been exported since January last, and that £78,000,000 in gold and £300,000,000 in notes had been hoarded. The Budgetary delicit stood at between £75,000,000 and £91,000,000. Revaluation of the gold stocks of the Bank of France would yield only £212,000,000, of which £180,000,000 had already becu bespoken. Short-Term Public Loan. M. Auriol announced that the Government is issuing short-term bills of smalt denomination in which the man in the street could invest. Meanwhile the Government, publicly and without hypocrisy, was seeking a loan from the Bunk of France.

The Finance Minister is tabling two Bills providing penalties for concealing funds abroad, authorising the Minister severely to repress action prejudicing the State, and empowering Cabinet to promulgate decrees ensuring that the Bunk of France will respect the economic interests of the nation. The Minister stated that the Government did not intend to nationalise private banks, but to control them and prevent abuses. Capital Levy Impossible.

M. Auriol bluntly told the Communists that a capital levy was impossible and would kill the French Treasury, but taxation would be reduced to a few simple imposts which would be rigorously collected.

Lucid and Frank AURIOL IMPRESSES, BENEFICIAL PROPOSALS. LONDON, June 19. The Paris correspondent of The Times says that M. Auriol deeply impressed the Chamber with his lucidity and frankness, and ail agree that ha deserves credit for his boldness. His proposals mean iiuancial revolution, which might bo dangerous, but they are likely to be of incalculable bcuciit to France.

The franc has improved sharply as a result of the speech.

M. Auriol added that the Government did not propose formal control of exchange, but speculators would be taught a severo lesson, especially those who were depositing securities abroad. They were double traitors