FRENCH POLITICS

Hokitika Guardian, 8 July 1926, Page 2

FRENCH POLITICS

“ —: i Australian <& N.Z. Cable Association.] FRENCH FINANCE. PARIS, July 7. In a crowded Chamber of Deputies, the Finance -Minister, M. Caiilaux, said that their situation was not desperate. it was certainly was one that '■necessitated the most rigorous measures. Their internal debt amounted to 286 thousand million frans. The condition of the Treasury was most precarious. This was owing to their excessive amount of short term, loan obligations. M. Caiilaux expressed the opinion that the consolidation of their debts would lead to formidable inflation of their currency, which would in turn ruin the country’s credit and would favour the encroachment of foreign capital into French undertakings. Therefore, lie said, lie favoured the creation of a. Management Fund, to he maintained by foreign credits. Their external commercial debt amounted to 18.945 million francs and it was impossible for France to continue to pay four thousand million francs anually in interest and the repayment of this debt if sterling continued to rise and the more favourable countries did not .give France credits. PARIS. July 7. Wlint is widely described as the most important debate since the war is proceeding in the Chamber of Deputies. -M. Caiilaux declared that though the budget had balanced for 192 G, it was now necessary to begin to repay the advances of the Bank of France, to consolidate the short term debts, to increase tile salaries of the underpaid State employees. Those projects would require three milliard francs of extra revenue.

M. Caiilaux revealed that the Treasury’s bank balance at present only amounted to half a milliard of francs, which would he less, hut for the sale of the Morgan loan.

He concluded with an impassioned ndjucation to the Chamber not to act like an exhausted soldier and throw down the knapsack, hut to make a determined effort to restore the country’s finances.