FULL POWERS

Wanganui Chronicle, Volume 80, Issue 81, 6 April 1938, Page 7

FULL POWERS

FRENCH GOVERNMENT A FURTHER EFFORT CABINET APPROVES By Teierra.-*—Press Association— Copyrishti Received April 5, 5.5 P- m - PARIS. April 4. Cabinet adopted M. Blum's Financial Bill without modification, authorising the Government to issue decrees for measures for national defence, to protect the gold stocks of the Bank of France, and to carry out the country's financial and economic recovery. It is understood that possible measures include a capital levy, a tax of 4 to 17 per cent, for defence, higher income tax, and increases in the Customs tariff.

The powers sought in M. Blum's financial Bill are practically those upon which the French Legislature differed in June last year, resulting m M. Blum’s Popular Front Ministry resigning. 'The Senate refused to sanction M. Blum's Bill in which full powers were demanded to with the financial situation. The Government demanded an authorisation to

take by decree all the necessary steps to assure restoration of public confidence and to combat attacks on currency and public credit. The Bill was passed by the Chamber of Deputies, mainly as a result of the support o£ the Communist Deputies, who had previously’ decided to abstain from voting. The Bill was emasculated by the Finance Committee of the Senate, which limited the scope of the legislation to the suppression o£ speculators and fiscal frauds. M. Blum was under double pressure by the Communists and by the Radicals, and the Senate remained under the domination of the Radical-Socialists. Being assured of the support of the Socialists, the largest party in the Chamber, M. Chautemps formed a Cabinet, which included M. Blum.

A month ago M. Chautemps Cabinet resigned because the Socialists and Communists refused to grant special powers to ensure the success of the national defence loan, and M. Blum rgain agreed to take office.