FRENCH FINANCES

Hokitika Guardian, 19 July 1932, Page 5

FRENCH FINANCES

BIG DEFICITS TO COPE, WITH

DEFICIT OF FIFTY MILLIONS

(United Press Association—By Electric Telegraph—Copyright.)

PARIS, July 18.

On the ev 6 of the holidays, the members of the French Senate and Chamber of Deputies rushed through a series of the most important financial schemes. The first was that of the issue of an additional twenty-two million sterling in Treasury bonds.

Secondly, there was a forty, million sterling loan to Algeria, half of which is to be used to repay loans to the French Treasury, and the reii is to be spent on public works. , Thirdly, there was the proposal for the conversion of Rentes lat 6 in the qutumn, which may total over nine hundred million sterling, now bearing five and six per cent, interest. It is hoped to convert it to 4£ per cents., resulting in v a saving of £16,500,000 per annum. During the recess • the Parliamentarians/are certain to head indignant reproaches from 'those 'Rentiers who are trying to nv 6 on their investments in the Government stocks, and who already have suffered greatly owing to the changed rvalue of the. franc 'and the recent increases in ’’the income tax. The estimate of the French deficit for the current year is still fifty .'million sterling. ' Next year’s deficit is estimated ait eighty-eight million sterling. Heroic measures are therefore essential.