FRENCH FINANCE BILL

Poverty Bay Herald, Volume LXIV, Issue 19364, 30 June 1937, Page 6

FRENCH FINANCE BILL

SINGLE CLAUSE ONLY POWERS TO CABINET DIRECTION BY DECREES (Klee. Tel. Copyright—United Press Assn.) (Reed. June JO, 2 p.m.) PARIS, June 29. The Finance Bill consists of one clause stating: "The Government is authorised, until August 31, to take by decrees previously adopted by the council of Ministers, all measures to assure the suppression of attacks on the State credit, fight against speculation, assure economic recovery, control prices, balance the Budget and defend the gold reserve without control of exchanges; decrees will be submitted to the Chamber for ratification within three months of publication of the present law." Startling figures showing France’s financial plight were given by the Minister of Finance, M. Bonnet, before the vote on his proposal, which ultimately was approved. M. Bonnet revealed that £47,250,000 worth of gold left the country between June 1 and June 22, and £22,250,000 worth of gold between June 23 and yesterday. There was only £182,000 in hand that morning, and the Government was obliged to borrow £3.636,000 from the autonomous State fund.

He proceeded that it would be impossible to maintain the franc at the present rate. The Government proposed to allow the franc to find its own level. He revealed that the franc equalisation fund has no longer gold on hand. It is expected that M. Bonnet, at a later stage, will denounce the threcPovver monetary agreement with the assent of Britain and the United States. This would eliminate the necessity of maintaining the equalisation fund, which at present holds about £106,000,000 in bank notes, but, as stated above, no gold.