All Banks In France Are Closed Temporarily

Wanganui Chronicle, 30 January 1948, Page 5

All Banks In France Are Closed Temporarily

WITHDRAWAL OF NOTES FREE GOLD BILL IS BEING DEBATED BY ASSEMBLY Reed. 12.5 a.m. London, Jan. 29 AU banks in France were closed today and will remain dosed until Saturday. The closing has been effected to enable the withdrawal of all 5000 franc notes, the note of largest denomination in France. Meanwhile, the Assembly is to debate the Bill which is to create a free market for gold and dollars in France. This measure is linked with the fate of the Government, in that the Prime Min ister (M. Schuman) has pledged his Government to it. Socialists k are intending to oppose the Bill, and that will make it difficult for the Government to obtain the necessary majority. M. Schuman announced, after :e meeting of the French Cabinet, that the Council of Ministers will meet this morning under M. Auriol’s presidency, says Reuter’s Paris correspondent. “We don’t envisage amending the Free Gold Market Bill,” said M. Schuman. “We decided to call the Council cf Minister? for a final decision. M. Schuman would not commit himself on the question of the confidence vote. The Socialists, while deciding to abstain from voting on the Bill as a whole, resolved to vote against the clause specifying a free gold market. The “Daily Telegraph’s" Paris cor- j respondent says that with 184 Com- ’ munists opposed to the Government. and Rightist Deputies’ attitude doubt- |

ful, the Socialist abstention endangers the Bill, and, therefore, M. Schuman’s Cabinet. The Associated Press Paris correspondent says that before the Cabinet meeting last night M. Schuman and M. Bidault (Foreign Minister) spent hours meeting Radical Socialists, Independent Rightists and de Gaullist’s in an effort to build up a majority without the Socialists. The French Assembly met last night, and, after hearing a two hour speech by the Finance Minister iM. Mayer), adjourned till today. M. Mayer said the British Chancellor of the Exchequer (Sir Stafford Cripps), had urged a three months limit on the operation of a free gold market, but the proposal was rejected because it would not give sufficient time to stabilise currency which would require at least six months. Reuter's Paris correspondent says it is believed the limiting the scope of the Bill to a six months period may form the basis of a compromise agreement with the Socialists. It is officially stated that French banks will remain closed trom today until Saturday pending the withdrawal from circulation of all 5000 franc notes, which, under a Bill which was introduced into the Assembly today, will no longer be legal tender. The Assembly passed the Bill.