Frances Financial Crisis

Manawatu Times, Volume 62, Issue 55, 6 March 1937, Page 5

Frances Financial Crisis

Prime Minister Calls Cabinet Together POLICY OF REASSURANCE. United Press Association—By Electric Telegraph.—Copyright. Received Friday, 7 p.m. LONDON, Alarch 5. The Daily Telegraph's Paris correspondent says AI. Blum unexpectedly summoned Cabinet at 10 a.m. to-day. It is persistently reported that the meeting will take far-reaching decisions to relieve the financial situation, which is expected to include the stabilisation ot the frane at 112 to the £, concessions to secure the return of hoarded gold and capital from abroad, and changes of financial policy, anticipation of which has caused Government, bonds and other securities to appreciate sharply. The Times Paris correspondent does not believe stabilisation will occur but expects the Government's measure to be limited to a policy of personnel, and withdrawal of taxes on transactions in gold and foreign currencies, with the view of reassuring capitalists. The situation developing in France as the result of financial difficulties may have serious repercussions on the international situation, conceivably leading to disorders iu the next few weeks, an earlier cable message stated.

The Australian Associated Press' political correspondent understands that the developments are arousing considerable concern in London, because Britain at present was so intimately bound up with France, that she woukl be drawn into any crisis, which moreover, might be a temptation to Hitler.

The French are in a state of alarm and find the dilemma was intensified because nobody was anxious to replace M. Blum, whose one chance of saving the situation may be a National appeal, hoping to rally the nation. One of the few factors in his favour is that the army at present is very strong and is believed to be entirely unaffected by politics.