Bankruptcy Avoided By Increase In France’s Credit Balance,

Star (Christchurch), Issue 17906, 23 July 1926, Page 13

Bankruptcy Avoided By Increase In France’s Credit Balance,

DEMONZIE USES EXTREME MEASURES, AND GAINS PARLIAMENTARY SUPPORT FOR PLAN TO SAVE REPUBLIC. ONLY enough money to last France one day remained to the country’s credit in the Bank of France on Wednesday, but at the night session national bankruptcy was avoided by the Senate and Chamber adopting M. Demonzie’s Bill authorising the return to the bank of the currencies held by the Treasury and authorising an increase in the limit of the note issue. The credit balance of the Republic was in this way increased from 60,000,000 francs to 150,000,000. M. Poincare is forming an emergency Cabinet.

POINCARE TO THE RESCUE. By Telegraph.—Press Assn.—Copyright. Aus. and N\Z. Cable Association. PARIS, July 21. M. Poincare has undertaken to form a Cabinet. The impression prevails that M. Poincare's Cabinet will be of only five or six members and M. Caillaux. M. Albert Sarraut, M. Barthou and M. de Jouvenel are four mentioned. M. Poincare’s Government will most likely be in the nature of an Emergency Committee composed of only half-a-dozen Ministers. INCENSED MOB PARADE STREETS. Aus. and 2\.Z. Cable Association. LONDON, July 22. With M. Poincare already busy forming a Cabinet it is scarcely worth narrating how M. Herriot’s two days’ Ministry fell. As the Paris correspondent of the “ Daily Chronicle ” says, it expired without tears or lamentations, and there were no followers for the seventh French Cabinet to fall within fifteen months. M. Herriot and M. Demonzie revealed themselves barren of ideas, and a strange spectacle was witnessed, M. Caillaux being cheered by the same Deputies who. two days ago, encompassed his defeat. So incensed was the populace that it might have manhandled the fallen Ministers if the police had not energetically intervened to protect them. Thousands .of. demonstrators were still before the Chamber at midnight, singing the “ Internationale ” and the “ Marseillaise.” Police and military reinforcements were called out and the streets were patrolled. Public buildings and the Elysee were • strongly guarded and the cafes and ‘night establishments were hastily closed, down. Bands of Fascisti paraded in force, shouting “Down with .the. Deputies. Long live a Dictatorship.” The Paris correspondent of the “Daily News” predicts the formation of a Committee of Public Safety in Paris. SENSATION IN CHAMBER. Tteuter’» Tfelegram*. PARISfc July 21. After the vote all the Ministers

walked out of the Chamber, except M. Demonzie, the Finance Minister, who asked the Chamber to vote immediately a Bill authorising the Bank of France to use part of the Morgan credits to enable the State to meet its obligations. The sitting was suspended while the Finance Committee discussed the Bill. M. Demonzie created a sensation when he read a letter from the Governor of the Bank of France stating that the country’s balance was now only sixty million francs, which would be absorbed within a day, putting the bank under the necessity of stopping all payments to the Treasury. M. Demonzie declared that the panic on the Bourse had been deliberately organised. He added that if the Morgan Credits Bill were not passed he personally would take the responsibility of authorising the bank to sell part of the loan in order to save the bank from suspending payments on the Treasury’s account, even if he were afterwards arraigned before the High Court. A night sitting of the Chamber adopted the Bill authorising the Finance Minister to arrange an agreement with the Bank of France under which the Minister will return to the bank the currencies held by the Treasury, also authorising an increase in the limit of the note issue by a sum corresponding with the sale of currencies, which will be carried out. M. Demonzie subsequently explained that the credit balance had been increased from 60,000,000 francs to 150,000,000. “ TO THE SHAMBLES!” Reuter’s Telegrams. PARIS, July 22. The Senate adopted the Bill submitted by M. Demonzie and Parliament rose. The remainder of the Morgan loan, which the Finance Ministry will hand over to the Bank of France, amounts to 33,000,000 dollars. It is now possible for the Treasury to meet its obligations for the current month without resort to inflation. The temper of the crowd surging round the Chamber of Deputies was indicated by the fact that when the downfall of the Herriot Government was known shouts were raised “To the Shambles,” “Offer their heads” and other insulting cries.

Contrariwise, cheers were raised for M.M. Poincare, Marcinot, Franklin and Bouillon, while two Communist Deputies going out were greeted with howls of execration.