CHAUTEMPS CABINET DOOMED Likelihood Of Socialist Withdrawal Mooted
NARROW ESCAPE IN SENATE DEBATE
Paris, To-day.
The newly-formed Chautemps Government seemed about to suffer an early defeat following ⚫an incident in the Senate which nearly ended in the resignation from the Cabinet of all the Socialist Ministers.
This is according to "Echo de Paris," which says that the Socialists showed an ardent desire to return to opposition in order to prevent the Fin- ance Minister, M. Georges Bonnet, from balancing the Budget by increased taxation on articles of gen- eral consumption.
M. Chautemps, says the paper, ed interest was able to sooth the Socialists! dertaken. by his well-known ability for mediation but the truce is expect- ed to be of short duration.
On July 10, the Socialist Party Congress begins in Mar- seilles and upon its delibera- tions depends the fate of the Chautemps Cabinet.
curities might be un-
OFF GOLD
FRENCH BUYING RATE FIXED
Paris, To-day.
The Banque de France has fixed the buying price of gold at 289.59- francs per kilo, equivalent to an exchange rate for sterling of
128.75 francs.
In Washington yesterday the Secretary of Treasury, Mr. Henry - Morgenthau, announced that the tri-partite monetary agreement between Britain, the United States and France would continue. Renter.
EMPRESS LINER INCIDENT
The usual
"“L'Oeuvre" also opines that as gathers at the Kowloon
GERMAN OLYMPIC
FILM
Paris, To-day-
The German film of the Berlin Olympies, which is now being cut and assembled under the direction of Leni Riefenstahl, will be completed by the end of January next year, announced the President of the Reich Film Chamber at the confer- ence of International Film Cham- bers here yesterday.
The completed film will be ade quate for two full evening perform- ances and will be about 6,000 metres long..
Over 400,000 metres of film were taken during the Berlin Games- Trans-Ocean.
of
..
a
couver, she hit the end of the dock and sustained damage to her bows. An amateur photographer was right large crowd which over the bow of the ship when she Wharf struck and as a result was reward- a really remarkable pic- in 1936, the franc will not be stabi-when a large vessel berths, were ed with lised immediately and that for the startled this morning, as the Em-ture taken immediately on impact. time being France will dispense press of Canada drew alongside, to The clouds of dust that arose give
hear excited shouting from a cabin a realistic effect. with the gold standard.
Meanwhile the Right Wing. press in the fore part of the ship, clear-
above the chatter
YOKOHAMA INCIDENT The official Gazette yesterday attacks the Chautemps-Bonnet po-ly audible
coolies and shouts of commands published the full text of the agree-licy.
As Yokohama was reached, "Le Jour" speaks of the "bank-from the officers. ment between the Finance Minis-
thinks Front" and
Subsequent investigations re-Russian-American, who served at ter and the Governor of the Ban- rupt Popular
can vealed that two men of Filipino na-one time with the U. S. Army as a que de France, by which the latter that the Chautemps Cabinet
as a "stopgap tionality were on board from Hon-cook, and was a mental case, dis- undertakes at the wish of the Trea-only be regarded
olulu, suffering from a mental de-charged as cured, by some manner sury to grant the latter new ad- Government.”—Trans-Ocean.
rangement. Employees of the Ha-of means escaped from the ship's vances up to 15,000,000,000 francs.
waiian Sugar Planters' Association "brig" where queer conduct a few and they are being repatriated. One days previously had caused him to of them, Hilarius Tadina, is given be confined, and jumped overboard to fits of volubility, especially when with the idea of swimming ashore. arriving in port, and it was his He was quickly, rescued, none the shouting to-day that attracted all worse for his adventure and was the attention.
returned to his quarters în The Empress has been in a chap-"brig" where he is now again un- Iter of incidents lately. At Van-der observation:
MORATORIUM ENDED
The Gazette also publishes the order declaring the Bourses open again as from July 1 and a decree ending the moratorium on bills and other trade debts payable in gold or foreign currencies.
The alterations in the Cur- rency Law of October 1, 1936 does not include abolition of the French Currency Equalisation Fund, which will remain in existence and function as in the past.
GOLD PURCHASES
Under the financial reforms the Fund can buy gold from or sell gold, to the Banque de France.
-
"AURIOL FRANC" Further Measures Held Necessary
Paris, To-day. The passage of the Empowering Chamber and Bill through the Senate is described by the Right Wing newspapers as the direct out- come of the "bankruptcy" of the finance policy of the late Blum Government and its Finance Minis- ter, M. Vincent Auriol. ·
The first consequences, say the papers, were the advance of money from the Banque de France to the Treasury and the collapse of the “Auriol franc." ***Echo de Paris," however, be- lieves that more financial measure must follow.
This measure will permit the Fund to procure gold either at the
NO UNITY OF PURPOSE. Banque de France or elsewhere, and the next official returns published If the Government does not yet will probably show that the Fund understand that, declares the paper, has made use of these powers.-it is because there is no unity of Trans-Ocean.
ECHO DE PARIS'S GUESS
Paris, To-day. "Instead of squandering the Equalisation Fund in trying to hold the franc at about 125 to the pound sterling, the Finance Minister will permit the franc to sink to 180 or even 135 and there will be no fixed
parity
purpose in the Cabinet.
The "Populaire" expresses sur- prise that the Senate granted plen- ary powers to M. Chantemps but not to M. Blum.
Nobody would believe, it says, that exclusively personal con- siderations were the cause of this.
It was a manoeuvre against the Popular Front Government that had been in force since the latter's con-
So declares Echo de Paris" in an ception.-Trans Ocean. article on the financial crisis.
will
"When the franc reaches 130 odd, the Equalisation Fund suddenly intervene to bring parity back to 125 in order by this manoeuvre to entice French capi- tal abroad back to France,
"This tendency would be so much strengthened by restoration of con fidence and a balanced Budget that conversion of interest rates on fix hess
LONDON: DEALINGS-
London, To-day. he French franc is again being on the London Stock Ex- the first quotations appear- MChautemps made his
polley.
Was 129.5
ing very
bual- Ocean.
GERMANY
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