FRENCH CRISIS.

Hokitika Guardian, 11 April 1925, Page 3

FRENCH CRISIS.

AUSTRALIAN AND X.Z. CABLE ASSOCIATION chamber, unable to debate. VAUIS, April 8. The Chamber is unable to debate the financial proposals to-day as the Finance Committee is still considering them. FRENCH POLITICS. :Received this day at 9 a.m.) PARIS, April 9. A strained political, situation is reflected in the comments of the newspapers. Opposition organs are not satisfied with the suggestion that the Government may drop the capital levy proposal and vigorously demand a solution must he found for the financial deadlock. According to the “Echo do Paris” M. Briand is surrounded by a crowd of flatterers urging him to

milkc a 1 >if.' for office. M. Herriot’s \ decision to light is due to the insist-

cnee of Socialist leaders. It is expected M. Herriot will demand an all night sitting on Friday in order to

obtain a decisive vote. It has now keen decided that the Chamber will debate and vote on the Government's

financial proposals to-day. Thus Government will know whether the Left Bloc is holding togcthe.. After adopting motions reducing certain items on public instruction estimates the Senate by 1-12 to 110 passed

a resolution in favour of restoring an appropriation for sob ol a res hips which the Commission of finance had decreas-

M. Herriot had previously complained of the Commission's hostility and made the. vote a question of confidence. Cabinet met later. It is expected the Government .will resign tonight.

Contrary to general anticipation the Cabinet after conferring for 31 hours lias not announced its resignation, for the consideration of which it had been urgently convened. Tt merely issued a •communique to the effect that it had discussed Demonzie’s Bill and other matters of less importance. Later, the. Chamber hy a vote, expressed confidence in the Government financial policy by 291 to 2)2.

A NEW POSITION. (Roreired this dav at 9 a.m.) PARIS, April 9.

A new turn is given to the financial situation as a result of a meeting this morning of all groups of the Left Woe to which Loucheur, who disapproves of Demonr-ies Rill, submitted a scheme for remedying the financial stringency by doubling the income tax, increasing the luxury taxes, and applying the proceeds to the creation ol a debt redemption fund, simultaneously the debt to be reduced by successive conversions. The plan was favourably received and will he submitted to the Finance Committee of the Chamber. Thus the Left Bloc, which Donmiizies Bill threatened to split may reunite behind Loucheur’s scheme.

The extent of the excessive bank note issue over the legal limit is disclosed by the weekly balance sheet of the Banque of France showing notes in circulation .18,001,792. thousand, which is 2,001,762 thousand above the limit. This inflation was previously concealed.

M. Herriot defending the policy in a two hour’s speech in the ( ham her said they were faced with the curious fact that the aftermath of the war had cost 161 milliards loans whereas the war cost lib milliards. Dealing with relations between the Banque ol France and Treasury. M. Herriot. said they not only followed their picdctcssors who constantly resorted to occult borrowing from banks, but mentioned the Poincare Government in April. 1921, elandistinely borrowed two and n-lialf millions from the hanks. lie had not revealed the truth earlier because he was convinced France must lie given a balanced budget before an appeal to make exceptional sacrifices was possible in order to help the treasury from the hole for only then would the country feel the money would he devoted to the redemption of the debt, not current expenditure. Bokanowski for the Opposition, while admitting the precedent of occult borrowing, charged the Government with being the first to hear the responsibility of publication of an inaccurate balance sheet by the Banque of France. The Chamber subsequently voted confidence in the Government.

SITUATION STILL COMPLEX

(Received this day at 9 a.m.)

PARIS. April 10. Tho political situation, in spite of the so-called vote of confidence continues complex. M. Herriott in the Chamber emphasised tlmt the adverse financial position was a legacy from previous Governments. He said that he sure mlei - preted the opinion of the country "hen 1,0 stated that the time had come to make a sacrifice. (Here he met with opposition cries or “Vos without yon. ) Continuing. M. Herr.ot declared that instead of flattering his country he was

Replying to a Comm «n at deputy he said that it was true that 1 ' . V c ' ~ of capital had been exported Horn l/rance during the last week and ho stigmatised the poop e responsible foi lliis move as financial descrteis. There were several angry interruptions during M. Hemot’s speech but it had a tremendously enthusiastic reception from his supporters. The resolution was so framed as to tiisuie a Government majority and it merely expressed the opinion that the Government was opposed to inflation and .would pursue the same financial !>•>- 1U |i was 'difficult to appraise the feeling nf the Chamber owing to the large miniher of abstensions.