FRANCE'S TANGLED FINANCES

Hawke's Bay Herald-Tribune, Issue 43, 6 March 1937, Page 3

FRANCE'S TANGLED FINANCES

— Presp Aoon.-

Prime Minister Calls Cabinet Together MUCH ALARM FELT

Tel«0raph

-Ccpyright.I

XONDON, March 5. The Daily Telegraph'a Paris correspondent says M. Blurn unexpectedly suxnmoned Cabinet at 10 a.m. to-day. It is persistently reported that the meeting will take far-reaching decisions to xelieve the financial situation, which is oxpected to include the stabilisation of ! the franc at 112 to the £, concessions to secure the return of hoarded gold and jcapital from abroad, and changes of i financial policy, anticipation of whieh jhas caused Government. bonds and other securities to appreciate sharply. ; The Times Paris correspondent does not believe stabilisation will occur but iexpects the Government 's measure to ffie limitcd to a policy of personnel, and iwithdrawal of taxes on transactions in: lgold and foreign currencies, with the view of reassuring eapitalists. I The situation developing in France; ' as the result of financial difficulties mayi have serious repercussions on the interuational situation, conceivably leading jto eisorders in the next few weeks, an •.earlier cable message stated. ' The Australian Associated Press' poliI itical correspondent understands that the i idevelopments are arousing considerablej concern in London, because Britain at j present was so intimately bound up with j France, that she would be drawn intoj any crisis, which moreover, mighc be' a temptation to Hitler. The French are in a state of aiarir and find the'dilemma was intensified because nobody was anxious to replace M. Blum, whose one chance of saving the situation may be a National appeal, hoping to rally the nation. One of the few faetors in his favour is that the army at present is very strong and is believed to be entirely unaffected by politics.