COST OF MOBILISATION

Evening Post, Volume CXXVI, Issue 83, 5 October 1938, Page 13

COST OF MOBILISATION

FRENCH PROBLEM

PLENARY POWERS SOUGHT

(Received October 5, 11.15 a.m.)

LONDON, October 4., The French Cabinet has decided to ask Parliament for plenary financial powers to meet the cost of the mobilisation, which is between £55,000,000 and £60,000,000. The preamble of the Bill, which grants the Government plenary powers until December 12, explains the exceptional circumstances of the cause. The! Government asks authority lor immediate measures which are necessary to ensure the economic and financial recovery of the country The Paris correspondent of the "Daily Telegraph" points out that the monetary situation has deteriorated { since October 1, and it is believed the Government must secure further advances from the Bank of * France, entailing inflation, or find a solution in the direction of exchange control, but the former is most likely. Financial authorities believe the Government may devalue the gold stacks of the Bank of France, increasing the value of the reserves by over £200,000,000. It is said that plenary powers are very unlikely to be supported by the Socialists and Communists. LONDON, October 4. General Gamelin, Inspector-General of the French Army, is inspecting thej Magihot Line and arranging for the gradual demobilisation of the reserves behind the line, but the line will remain on a war footing until; Germany demobilises. i