FRENCH CRISIS.

Hokitika Guardian, 6 April 1925, Page 2

FRENCH CRISIS.

PRESS VIEWS

AUSTRALIAN A.\;i N'.Z. CAULK ASSOCIATION'

PARIS, April 4

The fact that staid Senators almost came to blows while M. Hcrriot replied to a bombardment of questions, practically inaudible above the hubbub, reflects the general excitement culminating from the peisistent rcpoits ol an imminent capital levy and currency inflation.

Clemontel explaining lii.s resignation in “i.e Matin”, reveals a disagreement a few days ago with Cabinet, which favoured a brief statement to the [senate regarding the financial difficulties, whereas Clementel recommended lietaxation on alcohol, and tobacco and income tax, instead of launching vast levies. The seriousness of the issue is emphasised by the pajers which dwell on the prccai iousness ol the position oi the whole Government anil point out the fiii-iutial situation remains to bo solved. M. lie: riot is faced with further embarrassment by tlu- 4 atic-an issue concerning which a vote comes up in a few days. FRENCH CRISIS. RAULS, April 3. M. Clemt-nUei's resignation which was accepted followed the hasty summoning of Al. Her;iolt to the Senate from the Chamber last evening, in clearing up misconceptions among Senators raised by Clementel's budget speech, in which he foreshadowed the new issue ol bank notes for discounting trade hills. At. Hcrriott denied Government's intention to make a Iresh issue. He said lie desired a clean treasury. Ex-Alinisler Demnnzie has been appointed to succeed Clementel.

IF A 1 IDLER AND 1-S ELECTED. LON DON, April 5

No Ires’ll development in the French crisis is expected until Tuesday. Alennv.Ui.e interest iciitres in the Senatorial election [or the Seine Department today. where AD Milleraml is the opposition candidate for the seat which win lormerly held by a Government no mi nee. If is generally believed that hi election would he a severe blow to tin Government.

CAPITAL LEVY PROPOS'D). PARIS, April 4. The fiscal measures that were recoil' mended bv AD Clementel included

51! nor cent increase in the imonie tax. These have been dropped. 'lhe Government is resolutely opposed to any increase in the note circulation, but, in order to provide the Treasury with the necessary funds, probably the Government will ask the authority of Parliament to introduce a capital levy, the payments to bespread over ten years. LONDON. April 4.

The “ Financial Times’s” Paris correspondent says: A dread ol a capital levy has caused a rush on the h rench banks and the money changers. 'lhe public demand for sterling, dollars, Swiss francs and Dutch florins was so grout that many of the offices ran out of foreign currency beloro noon. Pound notes fetched Si-1 francs for cash.

AD Dcnionzie has confirmed a statement that the Government accepted a compromise as regards the 1‘ rench Embassy at the Vatican, which it previously sought to remove. DRAMATIC SCENES. PARIS. April 4. While the French Cabinet at one time yesterday morning was on the point of resigning (some reliable sources affirm that a decision was actually reached) it appears that M. Hermit; fort ilied by M. 1 femonzie's co-opera-tions. has now determined to luce the music. His Government i: '- howcicr, regarded us a distinctly shaky cue.

(tin- expert even -ays that it may not hr,l more than three lour da, On the oilier I,ami. il is thought tbal Al. Ilcrriot will obtain a majority oil Tuesday.

The real battle begins when the new financial measures reach the Senate. K Herriot falls, it- will be a fulfilment of a prophecy made when his Aliuislry assumed office, that it would disappear on either the financial or the religious

questions. It appears that Thursday night s scenes were most dramatic. M. Harriots’ intervention in the Senate evoked only cries of “Get out!" "> have h:ul enough oi you ! ,? Al. Herriot and Al. Clementel later. i„ private room, exchanged furious words, with mutual associations. Doriim- the all night conferences, the electric light failed. Only the glowing tins of their cigarettes showed where the Ministers sat. Sleepy ushers went to seek candles, and they stuck these in bottle necks. In this eerie light, the Ministers eontiniul to thrash out France’s financial future. until live o’clock in the morning, when the hag-

gard, weary statesmen emerged, turned up their collars and went home. It is believed that the Government’s capital levy plan will compel the owners of property to give Slate .Mortgages corresponding to the value ol theii estates. The mortgagors thereafter will he obliged to pay the State the value of the mortgage, during a prescribed period, probably of ten years. All the indications are that the Senate will reject any and every scheme for a capital levy. M. Herriot must then decide wlietbor to accent this decision oi resign.