TWO REPUBLICS

Wanganui Chronicle, Volume 79, Issue 126, 30 May 1935, Page 7

TWO REPUBLICS

FINANCIAL CRISES FRENCH DEVELOPMENTS CAUSE OF THE TROUBLE INSUFFICIENT SACRIFICES (By Telegraph—Press Association—Copyright) Received Alay 29, 7.20 p.m. LONDON, Alay 28. Several newspapers stress that the Governments of two great countries, both Republics, the United States and’ France, arc paralysed by an internal financial and economic crisis. There is * much speculation whether Al. Flandin and his Cabinet will resign. It is reported that the Premier wished to do so when he heard of the revolt of the Radical Socialists but was persuaded to wait further developments. .Many deputies say they are prepared to grant a free hand, but not to this Government. The Financial Times describes the position in France as one definitely of State crisis. It is apparent that the application of orthodox methods is failing to correct the abnormal situation. The core of the trouble is the failure of France to undertake the : sacrifices requisite to ensure the safety of its currency. The Financial News says the crux of the position still remains the French ) Treasury’s shortage of cash. BANK RATE JUMPS RAISED TO SIX PER CENT. PARIS, May 28. The French Bank rate has been raised to 6 per cent. The French bank rate was raised from 2| to 3 per cent, on Thursday, Alay 23, and to 4 per cent, on Saturday, ; May 25. TWO PER CENT. RISE FIRST TIME IN HISTORY. BRITISH FUND ACTIVE. Received Alay 29, 10.20 p.m. LONDON, May 29. The Daily Telegraph’s City editor says that the rise of the French Bank Rate emphasises the gravity of the situation. Never before in history has the Bank of France advanced the rate 2 per cent, at the one move. The ’ British Exchange Fund was again 3 active. It both bought and sold francs ! to prevent violent fluctuations. f LADEN WITH GOLD 1 d INGOTS FROM THE BANK x MANY PEASANTS IN QUEUES. B t b Received Alay 29, 9.5 p.m. e • PARIS, May 28. d There were extraordinary scenes at the Bank of France.] Queues of men s and women waiting to change notes n for gold, included scores of peasants, s The cashiers believe that the gold h run has brought out all the old misers in Paris. One man asked for 69 ingots, - «.nd when the cashier explained that t, they would break through the floor oi s the taxi, he took 20 and said he would ri return for the rest. p r. e GOLD FOR ENGLAND 0 h s COMING BY AIR AND SEA e. Received Alay 29, 7.20 p.m. LONDON, May 29A number of Frenchmen arrived by air at Croydon. Some deposited ingots iu the strongroom at the aerodrome, while others went into the city in search of safe deposits. One staggered from an aeroplane with a load of half a hundredweight, worth over £lO,OOO. Altogether five tons of bar gold valued at £1,250,000 has been landed at Croydon, while £500,000 worth arrived at Folkestone by sea. n J n ’ ASSAULTS ON THE FRANC i- ’ “ APPEAL TO FRENCHMEN PARIS, May 28. 1 The Council of Alinisters ha: l_ issued a communique as follows: — The monetary and financial situatioi 1_ does not represent the technical ele ments that imperil the currency. The present difficulty has been created by sudden violent assaults by specu ,e lators. The Government is determined 0 to break it by submitting indispensable 10 measures to Parliament, and appeals tc L t all Frenchmen to help to defend the national currency. The Government i: c resolutely hostile to devaluation. GOVERNMENT’S PLANS Id n MINISTER .COLDLY RECEIVED. PARIS, May 28. Five hundred Deputies frigidly received the Finance Minister (Al. Germain Alartin). Dealing with the financial crisis, Al Flandin being absent, Al. Alartin declared that monetarily France’s pu-si tion is superior to any country, but n series of important events had cul minuted in heavy withdrawals iron the Bank of France. The Government sought special powers to maintain the n value C’l. the currency. International »• speculators had attacked in turn all c-1 2 the gold bloc countries. Failing to in -v Jure Holland and •Switzerland, they e kad attempted to break the French 'i currency. This was unjustifiable. n It was the, Budgetary deficit which u created the lack of confidence and the tS threat to the franc. The permanency n of the deficit proved that France r maintained expenditure above the love t- of ta.xatic-n capacity, thus necessitati- ing continuous recourse to loans, the interest on which was now £40,000,001 n annually. Withdrawals from the Bank of