Full Powers For French Government

Manawatu Times, Volume 63, Issue 81, 6 April 1938, Page 5

Full Powers For French Government

Cabinet Approves

RIGHT TO ISSUE DECREES United Press Association—By Electric Telegraph.—Co pyriarh t. PARIS, April 4. Cabinet adopted M. Blum’s Financial Bill without modification, authorising the Government to issue decrees for measures for national defence, to protect the gold stocks of the Bank of France, and to carry out the country’s financial and economic recovery. It is understood that possible measures include a capital levy, a tax of 4 to 17 per cent, for defence, higher income tax, and increases in the 'Customs tariff. SENATE REJECTION SURE SACRIFICES BY PEASANTS Received Tuesday, 7.5 p.m. LONDON, April 5.

The Times’ Paris correspondent says M. Blum’s proposals are so sweeping and contentious thar., even if the Radicals confirm the decision of their Parliamentary group leaders, who agreed by 28 votes to 22 tc support the Bill, the Senato is certain to reject them. The Radicals’ feeble majority included eight Ministers naturally desirous of averting a crisis, while 25 did not vote.

M. Daladier, at the Cabinet meeting, pointed out that peasants were being asked to make sacrifices which industrial workers would not suffer.

The Chamber’s Finance Committee accepted the Bill by 25 votes to 18, but insisted that the exemption limit of the capital levy be raised from £6OO to £9OO.

The powers sought in M. Blum’s Financial Bill are practically those upon which the French Legislature differed in June last year, resulting in M. Blum’s Popular Front Ministry resigning. The Senate refused to sanction M. Blum’s Bill in which full powers were demanded to deal with the financial situation. The Government demanded an authorisation to take by decree all the necessary steps to assure restoration of public confidence and to combat attacks on currency and public credit. The Bill was passed by the Chamber of Deputies, mainly as a result of the support of the Communist Deputies, who had previously decided to abstain from voting. The Bill was emasculated by the Finance Committee of the Senate, which limited the scope of the legislation to the suppression of speculators and fiscal frauds. M. Blum was under double pressure by the Communists and by the Radicals, and the Senate remained under the domination of the Radical-Socialists. Being assured of the support of the Socialists, the largest party in the Chamber, M. Chautemps formed a Cabinet, which included M. Blum.

A month ago M. Chautemps’ Cabinet resigned because the Socialists and Communists refused to grant special powers to ensure the success of the national defence loan, and M. Blum again agreed to take office.