FRENCH CABINET

New Zealand Times, Volume XXXVIII, Issue 8740, 23 May 1914, Page 5

FRENCH CABINET

RESIGNING IN JUNE OWUNG TO CONFLICTING OPINIONS. By Telegraph—Press Association—Copjrieh' ’•Times" and Sydney "Sun" Seryices. (Received Mav 22, 6.5 p.m.) PARIS, May 22. M. Doumcrgue, the Prime Minister, is resigning in June owing to increasing difficulties and conflicting opinions in tho Cabinet.

"He Petit Journal” announced yesterday that the French Cabinet hi resigning without waiting tor the sissmbhe** of Parliament, owing to 102 Socialists iv fusing the Budget votes, and demanding a return to the two years’ military service system. The Socialists and Social-ist-Radicals are profoundlv divided on the question of electoral reform, which the Socialist-Radicals oppose. A financial crisis would be serious, as tbo Treasury is about empty. A few days ago M. Aimout, Reporter to the Senate Finance Committee, stated that Prance must secure twenty-four million pounds within two months or Pice bankruptcy. He suggested a Joan or a non-inquisrtoria 1 tax on capital and income yielding ten millions, and a tax on alcohol yielding eight millions. It was expected that, faced with a 'huge deficit oar the peat year’s financial operations, and with the expenditure to bo incurred in improving the army in answer to Germany’s challenge, the French Government would have to resort to a loan to cover at least all the nan-rocur-ring expenditure. This inis estimated by the Barthou Ministry at A 52,010,000, and when the Cabinet proposed to raise the amount by means of Rentes rmmuno from taxation it suffered defeat at the hands of the present Administration. The majority of the direct sources of taxation have already been tapped m Franco including super-tax on incomes, taxes on house property, on land, on doors -and windows, clubs and societies, on personal property, on mining royalties death duties, and billiard tables. There is also something equivalent to income tax in the patent duties levied on the apparent earnings of every trader and professional man—’•apparent, because they are calculated on the externa! signs of wealth, whether m the. shape of factory, workshop, or home, or-stylo of living. -