MUST HAVE MONEY FOR DEFENCE

Hawke's Bay Herald-Tribune, Issue 44, 8 March 1937, Page 5

MUST HAVE MONEY FOR DEFENCE

— Presa Abbh."

French President to Appeal to Nation • - £200,000,000 NEEDED

(By Telegraph

-Copyright.)

(Reeeived 8, 8.45 a.m.) PARIS, March 7. An indication of the gravity of the situation in France is the fact that the President, M. Lebrun, on Tuesday night will .broadcast from every station "a solemn appeal to the nation'' to support the defence loan. It will be the first time any President has broadcast such an appeal. The loan bonds will guarantee compensating holders in gold for every decline in the franc. No French Government has given such a guarantee Since the 1926 crisis. The issue of the loan has been postponed at least until Wednesday owing to the necessity o£ modifying technicalities in the monetary law regaTding the free negotiation of gold and clarifying the position. The experts managing the exchange fund expected that the easential measures would be passed by Tuesday. The Prime Minister, M. Blum, in a broadcast address to-night, explained that the measuTes aimed at permanently Bolving the situationS in which mere expedients were dangerous and

devaluation disastrous. He pointed out that the Government expected the fepatriation of impoi'ted capital. The loan is being issued in francs, pounds and dollars which are the eurrenciea of the Powers signing the monetary agreement in October last. An investor will thereby be protected against variations of currencies and could be repaid in the most advantageous of them. M. Blum pointed out that the Government required £200,000,000, which was normal in the crisis, as half that amount corresponded with the extraordinary armaments credits which it had been dedided to cover by loan.