THE FRENCH SITUATION

Hokitika Guardian, 23 July 1926, Page 2

THE FRENCH SITUATION

financial and political TROUBLES. PUBLIC SAFETY COALAHTTEE. STATE CREDIT LIMIT. (Copyright to Australian Press Assn.) PARIS, July 22. After ‘the vote, all the Aiinisters walked out of the Chamber except AI. Denionzie (.Treasurer) who asked the Chamber to vote immediately a Bill authorising the Bank of France to use part of the Morgan credits to enable the State to moot its obligations. The sitting was then suspended while the Finance Committee discussed the Bill. AL. Denionzie created a sensation when lie read a letter from the Governor of the Bank of France, stating that the country’s balance is now only sixty million francs, which would he absorbed within one day. thus putting the Bank under the necessity of stopping the payments to the Treasury. AI. Denionzie declared that panic on the Bourse had been deliberately organised. He added that if the Morgan Credits Bill were not passed, he personally would take the responsibility of authorising the Bank of France to sell part of the loan in question in order to save the Bank from suspending payments on the Treasury’s account, even' if he afterwards were arraigned before the High Court. CURRENCY LIMIT EXTENDED. At a night sitting the Chamber of Deputies adopted a bill authorising the Finance. Minister to arrange an agreement with the Bank of France under which the Alinister is to return to the Bank the currencies held by the Treasury, and also authorising an increase in the limit of the note issue by a sum corresponding with the sale of the currencies, which will be carried out. AI. Demongie subsequently explained that the credit balance had been increased from 60 millions to 150 millions. CALLED TO THE RESCUE. PARIS, July 22. M. Poincare (ox-Premier) hits been asked, and lias undertaken to form a Ministry. There is a moveinnt growing in intensity in favour of a Dictator, or a Committee of Public Safety, invested with plenary powers. At. Poincare’s Government will most likely he in the nature of an Emergency’ Committee, composed of only half a dozen Aiinisters. PARIS WILDLY EXCITED. LONDON, July 22.

AVitli AI. Poincare already busy forming his Cabinet, it is scarcely worth narrating how’Al.. 1-lerriot’s two-days ministry fell. As the “Daily ChroliicftPs ” Paris correspondent says: “It expired without tears or lamentations, and there were no followers for the seventh French Cabinet to fall within 15 months.”

'The/ correspondent continues: “ AI. Harriot and AL Denionzie revealed themselves barren of ideas, and the strange spectacle was witnessed of the same deputies cheering Caillaux who two days ago encompassed his defeat. So incensed was the populace that it might have manhandled the fallen ministers if the police had not energetically intervened to protect tljpin. Thousands of demonstrators were still before the Chamber at midnight, singing “ The International,” and “ The -Marseillaise.”

Police and military reinforcements were called out, and the streets were patrolled. The public buildings and the Elysee were strongly guarded, and the cafes and the night establishments were hastily closed down. “Bands of Fascisti paraded in force, shouting: ‘Down with the deputies! Long live the dictatorship!’” He adds—“ Ail impression prevails that M. Poincare’s Cabinet will be composed of only five or six membeis, and AI. Caillaux, AL Albert, M,. Sarraut. AL Bartliou and AI. de Jouvenel are four mentioned.” THE FRENCH SITUATION. PARIS, July 21. In a packed Chamber Premier Herriot road a Atinistcrinl declaration, stating the Government would immediately concentrate attention on the financial problem. There were immense difficulties looming ahead and the Government considered it necessary to meet these difficulitos, even the most pressing, in the closest conjunction with Parliament. France intended to pay the debts she had contracted in defence of her liberty. AVe absolutely refuse to resort to any increase in the .limit of our note circulation and reserve to ourselves absolute independence. Our only object is to stabilise tlie franc. At. Herriot’s .declaration met with a very cold reception.

THE GOVERNMENT DEFEATED. Premier Harriot was defeated by 290 to 237. The Government’s resignation followed, and caused tremendous excitement. the crowds hooting AI. Harriot and cheering his defeat, also demanding a dissolution.

TAK'INO- l’R EGA [ITIONS. LONDON, July 21

The “Daily News'” correspondent predicts the formation of a Committee of Public Safety in Paris.

FRENCH SITUATION. (Received this day at 8 a.m.) PARIS, July 22,

The Senate adopted the bill submitted by AI. Demonzie and to-day Parliament rose.

The remainder of the Aforgan loan which the Finance Minister will hand over to the Bank of France amounts to thirty-three million dollars. It is now possible that the Treasury will meet the obligations current every month without having to resort to inflation. The temper of the crowd surging round the Chamber of Deputies is indicated by the fact that when the downfall of the 11 erriott Government was known, shouts were raised: “To the shambles, off with their heads,” and other insulting cries. On the other hand cheers were raised for Afessrs Poincaire. Alacinot, Franklin, and Bouillok, while two Communist Deputies going out were greeted with howls of execration.