1937-06-16 — Page 90

Daisy

MAIL Brand

WEDNESDAY, JUNE 16, 1937

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FLIGHT FROM FRANC WARNING IN NEW FRENCH CABINET CRISIS

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Fall of the Blum Cabinet is considered im- minent as a result of the withdrawal of the Com- munists from their support of the Popular Front.

The breach has arisen from M. Auriol's de- mand for plenary powers to meet the financial crisis, which he warned the Deputies had already caused a flight from the franc.

Paris, To-day.

It is generally believed that the Communist group will ab- stain from voting on the Gov- ernment's Financial Bill unless· the

Government changes its attitude.

FALL INEVITABLE ?

Slender Majority win

Not Suffice

Paris, To-day.

The Chamber of Deputies was A. Auriol, is insisting on special packed for the debate on the Gov- ernment's Special Powers Bill, ad- option of which was moved by M. Schmidt on behalf of the Finance Committee,

plenary powers and acceptance of the programme outlined as a mat- ter of confidence.

Abstention of the Communists will probably lead to the Govern- ment's resignation.

General Faupel, Germany's Am- bassador to the Franco Govern- ment, who made a significant speech to Salamanca students yes terday.

GENERAL FAUPEL'S ADDRESS TO SPANISH STUDENTS

Salamanca, To-day.

AUSTRALIA'S CHOICEST

BUTTER

New Soviet Bloodbath Prophecy

London, To-day.

"Firing squads in the So-

viet will be kept busy for

i

the next few weeks.”

These dramatic words introduce a long report on the latest internal crisis in Russia arising from the "purge" of the Red Army, which appears in the "Daily Express" from its Moscow correspondent.

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The correspondent states that 39 officers, including four generals, were arrested on Monday, and are now awaiting trial.

The report adds that three trains full of "suspects". arrived in Mos- cow on Monday morning under heavy military guard. Trans- Ocean.

Fair To Showery

The Royal Observatory reports that the depression over S.W. "China has increased in intensity, and a A pro-German demonstration was trough of low pressure extends east- held by Spanish students at Sala-ward to the Bonins; another de- manca University at the end of term pression may be developing over yesterday.

the Sea of Japan.

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The Communists, after a midnight meeting, declared their continued The students were addressed by Forecast:-S. winds, moderate; opposition to the indirect taxation the Director of the University who fair to showery. The Communists are still opposed proposals, and the. Government's declared that for centuries Ger- to indirect taxation but are prepar-fall is believed to be inevitable, for many and Spain had been related ed to offer collaboration in the Gov- even if Premier Leon Blum gets a closely through cultural ties. ernment a wider basis which

majority, its slenderness will would strictly apply to the Popular preclude retention of office on such Front programme.-Reuter.

an important issue.-Reuter..

FLIGHT FROM THE FRANC

on

LOAN FROM BANK

Paris, To-day."

M. Auriol's Revelation

The first step in the financial re- organisation which the Popular Front Government has been obliged to undertake, is expected to con- sist of immediate realisation of the

Paris, To-day. sum of 10,000,000,000 francs in the "Over 50,000,000,000 francs have form of a special advance by the gone abroad and we are faced with Bank of France to the Treasury. the same attacks as in 1924, 1925 It is believed that the Goverment and 1936," said the Finance Minis- intends to guarantee the advance ter, M. Vincent Auriol asking the by means of adjustment of ordin-Chamber's confidence in the ary and special taxation and tariffs, which in practice, will find expres- sion in another rise in prices.

INCOME TAX INCREASE

As already foreshadowed, the tax on incomes of over 60,000 francs a year will be increased.

The Government, at yesterday's session of Parliament, demanded that the body pass an Enabling Bill to give the Government full powers.

When the Bill was introduced, the Government demanded "urgency procedure."

Political circles declare that the Government is under no illusion concerning the unpopularity of the proposed new measures, and the Government is expected to encoun- ter considerable opposition" in Chamber.-Trans-Ocean.

Gov-

ernment's proposals to defend pub- lic credit.

M. Auriol, presenting the balance sheet for the first year of the Po- pular Front Government, stated that revenue from taxes on indus- trial profits had risen from 695,- 000,000 to 868,000,000 franes, and income tax from 945,000,000 to 1,334,000,000 francs.-Reuter.

ON OTHER PAGES

Four-Power Note Text French Chateau Crime Arrests Von Neurath's New Mission American Seamen Convicted" Bilbao's Flight Germany and Imperial Confer-

ence Proposal

Empire Foreign Policy

the

Mr. W. Logan Retiring

Drake Bye-Election

New Japanese Flights

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The German Ambassador with many and Spain, "who have as.com- the rebel forces, General Faupel, mon aim the object of liberating stressed the necessity of close cul-Europe from Bolshevism."-Trans- tural co-operation between Ger-Ocean.

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