FRENCH FINANCE

Poverty Bay Herald, Volume LXIV, Issue 19365, 1 July 1937, Page 5

FRENCH FINANCE

CAUSE OF STORMY DEBATE FIST FIGHTS IN LOBEIES PASSING OF MEASURE FALL IN FRANC EXPECTED (Kino. Tol. Copyright—United Press Assn.) (Reed. July 1, noon) LONDON, June 30. Reports from Paris state that M. Bonnet, the French Minister of Finance, told the Finance Committee of the Chamber of Deputies that he will meet the obligations of the Treasury during the year, at least, partly by raising the upper limit of the Government's current account with the Bank of France by £100,000,000 to £150,000,000. He said that the ordinary budget showed a deficit of £70,000,000, which would be covered by new taxation. It is regarded as certain that the Government wishes to be able to devalue the franc further, if necessary. It is believed that the Government contemplates a fall front 110 to 125 francs to the £. Financial circles anticipate that the franc will be allowed to fall to 130 or 135 to the £l, and later suddenly brought back to 125 to the £, thus confounding speculators and encouraging the repatriation of French capital. The Bank of France announced that pending the decision of Parliament it had suspended all exchange operations. The session of the Chamber reopened this evening. M. Schmidt, recorder for the Finance Committee, stated that the Government’s financial proposals had the full support of the United States and Britain. M. Schmidt added that the Government proposes to increase the income tax, certain indirect taxation and the railway rates. Suspension of Sitting The sitting of the chamber was suspended at 1.30 a.m. owing to disorder caused by Communist members. The deputies immediately raced to the refreshment room, where angry arguments culminated in fist fighting between the Communist and Right Wing deputies, who were separated by the sergeant-at-arms. When the Chamber resumed at two a.m., the Right Wing members demanded the suspension of the Communist fighters. This caused pandemonium, with the deputies hurling insults at each other. Feeling ran so high that M. Herriot again suspended the sitting. When the Chamber resumed, the Communist deputy, M. Ramadier, asked to be allowed to speak, but M. Herriot refused to allow him, declaring that the Chamber had more important things to do. This caused further uproar and another short suspension of the sitting. Balance by End of Year M. Bonnet said: “I am determined to balance the Budget before the end of the year.” He insisted that France no longer had the choice of various solutions. She must give the present Cabinet full powers. “The drain of gold from the country and the maintenance of European peace depends on a strong France, and to be a strong France we must have healthy finances,” he declared. The Chamber of Deputies adopted the Finance'Bill by 380 votes to 228. Revised figures of the voting show an increased Government majority of 374 votes to 206. The Senate adopted the Finance Bill by 167 votes to 82, after the Finance Commission had unconditionally accepted it by 20 votes to three. Shouts of ‘Post it” greeted an explanation by M. Abel Gardey, the commission’s rapporteur, of why the Senate refused the Socialist, M. Blum, full powers, but granted them to the Radical, M. Chautemps. Funeral Oration “Post it” means that under the law of affichage, the speech will be placarded in every town hall and public hoarding, but though a show of hands favoured this, M. Caillaux secured a suspension of the sitting to decide the question, the motion having so incensed the Socialists that M. Auriol, the former Finance Minister, and several of his colleagues, left the Chamber. M. Gardey’s speech amounted to a funeral oration for the Popular Front. He argued that M. Blum would have used his plenary powers for the coercion of nationalisation instead of national recovery. Later, M. Gardey testified how touched he was by the compliment of the posting motion, but as it might create a fresh Parliamentary conflict he begged the Senate to cancel the decision, which, after consultation, was done.

THREE-POWER PACT FRANCE MAY WITHDRAW WASHINGTON, June 29. The Treasury of the French Government contemplates withdrawal from the tripartite agreement. The French Embassy explained that the notice was simply a desire to fulfil the terms of the agreement by exchange of views before any action is taken that will tend to upset the ratios of the currency. It is not to he interpreted to mean there will be a devaluation of the franc.