FRENCH CRISIS

Timaru Herald, Volume CXLV, Issue 21184, 3 November 1938, Page 11

FRENCH CRISIS

RESIGNATION OF MINISTER OF FINANCE United Press Association—By Electric Telegraph—Copyright PARIS, November 1. Because he refused to give ground on the reconstruction proposals in face of Cabinet opposition, M. Marchandeau has resigned from the Finance Ministry to which the Minister for Justice, M. Reynaud, has been appointed. M. Marchandeau is taking over the portfolio of Justice. Promising his programme within five days, M. Reynaud, in a statement, said he would refuse to devalue the franc the necessity for which had passed. “The problem of recovery,” he said, “is not monetary, but economic and financial.” Tire Minister of Commerce <M. Gentin) said that the Government was undertaking a survey of production, planning the rationalisation of some industries and the creation of others, but not involving State control or pressure. The Government, however, was prepared to act in an advisory capacity. The Paris correspondent of the "Dally Telegraph" says that M. Gentin is obviously. countering Dr. Ley, but the policy will not have an appreciable effect unless the industrialists are made to realise that stringent measures will follow if hints are not taken seriously.