FRANC RISES

Taranaki Daily News, 3 June 1935, Page 5

FRANC RISES

CABINET FORMED M. BOUISSON PREMIER MOST PARTIES INCLUDED CAILLAUX’S WIDE POWER FINANCE AND ECONOMICS By Telegraph—Press Assn—Copyright. Rec. 11 p.m. Paris, June 1. M. Fernand Bouisson has formed a Ministry of National Union, representing almost all parties. The outstanding feature is the return of M. Joseph Caillaux, who is one of no fewer than four Ministers without portfolio, the others being M. Edouard Herriot, M. Louis Marin and Marshal Petain. Seventeen searches of houses alleged to contain speculators against the franc resulted in the seizure of numerous documents. Eight magistrates havo been assigned to deal with the prosecutions. It is believed that bankers’ and brokers’ recommendations to clients that they should sell Government stock and ,buy gold are sufficient grounds for prosecution. The Cabinet appointments are:— M. Fernand Buisson: Prime Minister and Minister of the Interior. M. Pierre Laval: Minister of Foreign Affairs. M. Pemot: Minister of Justice. General Maurin: Minister of War. M. Francois Pletri, Minister of Marine. General Denaih: Minister of Air. M. Laurent Eynac: Minister of Commerce. M. Palmade; Minister of Finance. M. Rouston: Minister of Education. M. Louis Rollin: Minister of Colonies. ■ M. Frossard: Minister of Labour. M. Perfetty: Minister of Pensions. M. Roy: Minister of Agriculture. M. Lafont: Minister of Health. M. Mandel: Minister of Post and Telegraphs. M. Caillaux after a stormy career returns to the arena as supreme adviser on financial and economic questions. He was Minister of Finance in 1914, when he resigned the office amid a storm of criticism. He was Finance' Minister in 1925 and 1926 and again in 1930. M. Caillaux announced his inflexible determination to maintain the franc, to throttle speculation ruthlessly and to combat devaluation. M. Bouisson is 61 years of age. He is a Marseilles industrialist and was born in Algeria. He was elected a deputy as a Socialist in 1909, but he resigned from the party in 1933. He directed the merchant marine during the war, bringing foodstuffs and munitions to France. Hitherto he has refused a position in the Cabinet. The franc rose swiftly upon the formation of the Cabinet. Forward premiums are down by 50 per cent, and are now above the gold export point. One hundred and -'fifty influential Radical members almost unanimously decided to support M. Bouisson after an assurance that he would not use dictatorial powers for political ends. The Socialists refused to join the Cabinet, but they state that it is necessary to defend the franc. The Press welcomes the Cabinet and points out that it contains no members in favour of devaluation. The exchange market is very quiet. Financial circles are pleased that the political crisis has come to a head. Many bankers believed the market would turn directly the Cabinet was formed. M. Bouisson is expected to demand full powers to defend the franc.