MONEY CRISIS

New Zealand Herald, Volume LXXIV, Issue 22670, 6 March 1937, Page 15

MONEY CRISIS

' FRENCH_POLICY CHANGES ANTICIPATED CABINET SUMMONED M. BLUM'S DILEMMA NO AID FROM BRITAIN By Tcletrraph—Press Association—Copyright ' (Received March 5, 5.5 p.m.) LONDON. March 5 The Paris correspondent of the Daily Telegraph states that the French Prime Minister, M. Blum, unexpectedly summoned the Cabinet at 10 a.m. to-day. It is persistently reported that the Ministers ■will take far-reaching decisions to relieve the financial situation. These are expected to include the stabilisation of the franc at 112 to the pound, and concessions to secure the return of hoarded gold and capital from abroad. Changes in the financial policy arc also believed to be likely, anticipation • of which has caused Government bonds and other securities to appreciate sharply. The Paris correspondent of the Times says h'e does not believe stabilisation or devaluation will occur. Ho expects ' the Government's measures to bo aimited to the withdrawal of taxes on transactions in gold and foreign currencies with a view to reassuring Capitalists. The political correspondent of the iAustralian Associated Press says he understands that the British Government, while expressing active interest in and strong sympathy with M. Blum an his financial difficulties, has firmly intimated that neither the Treasury nor the Bank of England at present can extend,further financial support.