FRENCH POLITICS

Otago Witness, Issue 3117, 10 December 1913, Page 27

FRENCH POLITICS

PARIS, December 2. The Government was defeated by 290 vote‘s to 265. It advocated giving investors a promise tiiat the now Rentes (Government Bonds) should bear immunity from taxation. MM. Caillaux and James led the Opposition. The President lias accepted the resignation of tho Cabinet. December 5Thc crisis indefinitely postpones the raising of the £52,000,000 loan and has dislocated tho arrangements for financing the Balkan States which were awaiting conclusion. The dissolution of the Chamber of Deputies is not expected as a. result of tho crisis. The Government proposed that the new Rentes should bear an inscription guaranteeing them the enjoyment of the same immunities as heretofore. The Government urged that Rentes had fallen to £B6, that the new issue was unlikely to be above £O3, and that if direct taxation were imposed tho price would bo further depreciated. M. Caillaux pointed out that a tenth of French wealth was invested in Rentes, and unless tho Chamber reserved tho liberty to tax Rentes it would be impossible to impose- an income tax. Even if the promise of exemption resulted in a profit of 4 per cent, on tho present loan, it would eventually moan a loss of £40,000,000 to the detriment of tho peasant. Tho majority against the Government was composed of elements which are unlikely to collaborate for long. The dislike to triennial service and the objections to the Proportional Representation Bill are the chief factors in the Government’s defeat. M. Caillaux recently advocated a return to the two years’ service, which makes his chance of the Premiership apparently impossible. . December 5. In connection with the political situation it is suggested that M. Delcasse should be recalled from St. Petersburg, and entrusted with the task of concluding the loan flotation and preparing for tho election, or, in the alternative, that President Poincare should obtain the consent of the Senate to an immediate dissolution. M. Dnpuv is considered tho likeliest candidate for the Premiership. It is expected that M. Dupuy will form a Cabinet of conciliation, including M. Ribot and M. Pichon. M. Ribot, who is in poor health, is at present sounding bis friends, including M. Clemenceau and M. Briand. Many members of the Chamber of Deputies desire President Poincare to exercise bis right of dissolution. M. Caillaux will oppose a Dupuy Ministry. Since the crisis commenced Rentes have declined £15,500,000 December 7. The group of Radicals who are headed by M. Caillaux refused their co-operation, and so prevented M. Dupuy and M. Ribot from forming a Cabinet. The President has now invited M. Doumergue to undertake the task. December 8. M. Doumergue is endeavouring to form a Socialist-Radical Cabinet, with M Cailleux as Minister of Finance.