GOVERNMENT OF FRANCE.

New Zealand Herald, Volume LXIII, Issue 19377, 12 July 1926, Page 9

GOVERNMENT OF FRANCE.

A CRISIS OVERCOME. CONFIDENCE VOTE CARRIED. WAR DEBT REPAYMENT. CAILLAUX TO FLY 'TO LONDON. By Telegraph—Press Association—Copyright. (Received 5.5 p.m.) A. and N.Z-Reuter. LONDON. July 10. A message from Paris yesterday stated j that the fato of the new French Govern- I ment was in the balance and that it. was agreed that the pending debate in the j Chamber of Deputies would be decasive. In the- opinion of the Socialists the pjan of a capital levy had ceasfid to count after M. Caillaux's latest, speech, j It was estimated that the Government j could rely on 230 votes, but the dubious factor was the attitude of. the. Moderates under M. Marin, who had not mo far participated in the debate. It was-explained to the Chamber that • the extrabrdinat-y powers the Government required did not imply an imposition ot taxes without tho consent of Parliament, but that they would merely simplify and accelerate the procedure. M. Caillaux 'said the Washington, debt agreement and also foreign loans were necessary to France's financial restoration. At the close of the debate a vote of confidence in the Government was carried by 269 votes to 247. The Paris correspondent of the Observer says that although the majority for the Government was narrow the vote. of confidence will enable M. Caillaux to negotiate for ameliorated terms with Washington and London regarding debt settlements. ' The French Government, however, is still without the sanction of the Chamber for the powers it its seeking for the making of financial refbrms by decree. The correspondent lays emphasis on the fact that the vote of confidence authorises the French Government to attempt to put into force its scheme for monetary stabilisation. From this point of view jt may, he says, be described as the most important financial decision since* the war, perhaps the most important for a century, for it means an effort to create a new franc, M. Caillaux is to fly to London on Monday to meet the Chancellor of the Exchequer, Mr. Winston Churchill. RATES OF EXCHANGE. IMPROVEMENT ON FRIDAY. FLUCTUATIONS IN THE FRANC. (Received 8 5 p.m.) Reuter. LONDON. July 10 The exchange rate for the French franc in London was rather better yesterday, namely, 187.37 to the pound. Belgian francs were quoted at 199.25 to the pound. The previous day's quotations were 189.50 and 200.7/5 respectively. In spite of tho vote of confidence in the French Government, cafrried by the Chamber of Deputies, tho French franc again fell to-day to 188 to the pound. BERLIN CONFEEENCE. INTERNATIONAL FINANCE. STABILISATION OF FRANC. A. and N.Z. PARIS, July 9. It is reported in German financial quarters that an international Finance Conference will shortly be held in Berlin. It is stated that France is disposed to make concessions to Germany if the Reichbank joins with Britain and America in efforts to stabilise the franc.