FRANCE’S FINANCES

Nelson Evening Mail, Volume LXX, 20 June 1936, Page 13

FRANCE’S FINANCES

LARGE SUMS HOARDED ABROAD (United Press Association—By Electric Telegraph—Copyright) (Received 20th June, 2.30 p.m.) PARIS, 19th June. In the course of an outspoken account of France’s finances, M. Auriol dismissed devaluation as an economic panacea. He emphasised that the Government desired the nation to save itself and its currency. He estimated that £338,000,000 of French capital had been exported since January of last year, £78,000,000 in gold, and £390,000,000 in notes, and hoarded. The Budgetary deficit stood at between £78,000,000 and £91,000,000. A revaluation of the gold stocks of the Bank of France would yield only £212,000,000 of which £186,000,000 was already bespoken.

M. Auriol announced that the Government was issuing short-term bills of small denomination in which the man in the street could invest. In the meanwhile the Government is publicly and without hypocrisy seeking a loan from the Bank ‘of France.

M. Auriol will table two bills providing penalties for concealing funds abroad, and authorising the Minister to severely repress any action prejudicing the State and empowering Cabinet to promulgate decrees ensuring that the Bank of France respect the economic interests of the Nation. The Government did not intend to nationalise private banks, but to control them and prevent abuses. M. Auriol bluntly told Communists that a capital levy was impossible as it would kill the French treasury, but taxation was being reduced to a few simple imposts which would be rigorously collected. “The Times” Paris correspondent says M. Auriol deeply impressed the Chamber with his lucidity and,frankness. All agree that he deserves credit for the boldness of his proposals which mean a financial revolution which might be dangerous, but are‘likely to prove of incalculable benefit to France.

The franc improved sharply as a result of the speech. M. Auriol added that he did not propose formal exchange control, but speculators will be taught a severe lesson, especially those who are depositing securities abroad. “They are double traitors,” he said.