FRENCH CRISIS

Wanganui Chronicle, Volume 79, Issue 282, 2 December 1935, Page 7

FRENCH CRISIS

CONFIDENCE IN GOVERNMENT SOCIALISTS ARE CRITICAL M. LAVAL POINTS TO BRITAIN (By Telegraph—Press Association—Copyright] Received Nov. 30, 1,15 p.m. PARIS. Nov. 29. M. Reynaud contended that au overvalued currency disorganised the economy fabric owing to its effect on prices, and he added that general currency stabilisation, extension of credits, great reductions in taxes and i even the end of the Abyssinian war were all mirages. As far as the crisis was concerned, England and America had practically overcome the depression by devaluation. France was still in the slough of misery and unemployment was rising. M. Blum announced that the Socialists would vote against the Government because they disagreed with the entire programme. M. Deal, Socialist, declared that M. Laval’s policy was producing a danger of civil war. M. Laval, replying retailed Britains’ use of economies, which he also had adopted in order to overcome the crisis. He added that Britain, after four years, was able to repay the nation’s sacrifices. He believed that France would recover more swiftly. The Chamber passed a motion of confidence in the Government by 325 votes to 247. There was a larger majority than had been expected, causing the belief that M. Laval will be similarly successful in the other issues. READY TO DEVALUE FRANC BUT OTHERS MUST ACT TOO PARIS, Nov. 30. “France is ready to consider devaluing the franc to a lower gold basis if sterling and dollar are stabilised, but we cannot align the franc with melting currencies,” declared M. Regnier (Minister of Finance) in defending M. Laval’s finance policy in the Chamber, He added that the franc was being subjected to violent attacks and every minute lost in discussing the policy increasingly endangered the currency. “I will not devaluate to please the bankers, as in the event of devaluation the middle classes would bear the brunt.” M. Regnier characterised the flight of gold since November 4 as catastrophic and added, amid cheers, that the Government was prepared to defend the franc until the last moment. M. Regnier was replying to the speech of M. Reynaud (ex-Minister of Finance) favouring devaluation, in which he declared that the Government was trying to keep the gold reserves by an overvalued currency, which was impossible. No Government could succeed in that.