RIGOROUS MEASURES.

Poverty Bay Herald, Volume LII, Issue 17080, 8 July 1926, Page 7

RIGOROUS MEASURES.

FRANCE’S FINANCIAL POSITION. CAILLAUX outlines position. (Elec. Tel. Copyright—United Press Assn > (Australian and N.Z. Cable Association.! PARIS, July 7. In a crowded Chamber M. Caillaux said that if the situation was not desperate it necessitated the most rigorous measures. The internal debt amounted to 280,000,000,000 francs. The condition of tli,e Treasury was most precarious owing to the excessive amount of short-term obligations. M. Caillaux expressed the opinion that consolidation would lead to a. formidable inflation which would ruin the country’s credit and favor the encroachments of foreign capital into French undertakings. Therefore, he favored the creation of a management fund, maintained by foreign credits. The external commercial debt amounted to 18,945,000,000 francs, and it was impossible for France to continue to pay'4,000,000,000 francs interest, and the-repayment of this debt if sterling ■continued to vise and more favored countries did not give France credits. (Router's Telegram.) PARIS. July 6.

Opening what is widely described as the most important debate, since the war, M. Caillaux declared though Hie Budget balanced in 1921, ii was necessary to begin to repay advances to the Bank of France, consolidate short-term debts, and increase the salaries of underpaid State employees. These projects would require three milliard francs extra revenue. ' M. 1 Caillaux revealed that tho Treasury bank balance at present only amounted to half a milliard, which would be less but foV the sale of the Morgan loan- He concluded with an impassioned adjuration to tlie Chamber not to act like exhausted soldiers, and throw down their knapsacks,- but to make a determined effort to restore the country’s finances.