Evening star., 1925-04-09
TREASURY RUINED
BY PREDECESSORS,
HERR|0T CHARGES
Premier Assumes Offensive
in Flaming Speech Be-
fore Chamber.
SAYS POSTWAR LOANS
CAUSE OF PRESENT ILL
Reported Planning to Quit if Posi-
ton Is Not Bettered
Today
Py the Associated Press.

ny the ASSOCIATED fress.
PARIS, April 9.-Premier Herriot
suddenly assuming the offensive in
the Chamber of Deputies today, made
sweeping charges of faulty admins
tration of the treasury against every
government since the armlstlce
haiming them for the present financial
crisis.
Turning upon his accusers, who
have had him fighting bitterly for his
political life the past few days, he
took the rostrum and began stirring
speech, in which he promised to re-
veal all the intimate secrets OF the
French. treasury.
1t was forecast in cabinet circles
before the session that if the pre-
miers reception in the Chamber and
In the Senate, where he also plann ed
TO speak, was such as to make the
governments position look dubious
he might resign without awaiting q
vote.
Says Situation MaEnIned.
Premier Herriot said he had decided
to speak Immediately because of the
''imprudent campaign now going on IN
the financial domain, injuring France
before her own public opinion and
what is more dangerous, opinion
abroad" He added he would show
with figures that the financial situation
of France was not SO critical as broad
cast by his political enemies.
Premier Herriot began speaking
amid a terrific uproar. his followers
welcoming him noisily. while the op-
position 'booed." Every deputy was
present. packing the. chamber.
The premier said the present finan-
cial crisis was a logical outcome of
the policies of all the governments
since the armistice. His government
was not alone responsible. as it had
taken over an exceedingly difficult sit
uation
Large loans have been foated every
year at a high rate of interest, said
the premier, burdening the budget.
Germany Upsets Plan.
All these Ioans.,,' he added. were
based on the idea that Germany would
pay, but Germany began to pay only
because of the Dawes plan"
The result has been he said, that
the five years after the war had cost
more than the five years Of the war.
Il won't speak of our foreign debt,
continued the premier, because you
are aware of the uncertainty of the
situation. You know how heavily 1t
even at times interfering with our
very political liberty"
Pandemonium broke loose at Her
riots reference to the foreign debt
interfering with political freedom
His supporters rose and cheered
while the opposition "booed."
The situation of the French treas,
ury regards the Bank Of France
was better than at the time of the
,ol l. hat, /,
and the state made in December, 1920
by the then Finance Minister Fran
coils Marsal the premier declared.
Cites Earlier Limit.
AT that time, when money was
howing freely from internal loans,
he said, the treasury limit on ad-
Vances by the bank to the state was
placed at twentyseven billion francs
You now find it preposterous," he
exclaimed, when, faced with a
financial stringency, We want to place
the limit at twenty-siX billion"
Yours is the first government since
the armistice that has obtained from
the bank money Illegally in circula-
tion. Your predecessors kept within
the law" interrupted ex-Minister OF
Commerce Pierre Flandin.
The Morgan loan of 100000, ,00C
still is untouched, said Premier Her
riot He explained he preferred hold
ing 1t in reserve, not considering the
present situation critical enough &c
warrant its use.
Deputy Marshal Marsal Kachin
Communist, asked if 1t were true thai
in the past two months seventeen
billion francs in French securities
and currency had gone to Italy alone
Premier Herriot refused to give the
hrft har hal hea 1.
large flight of capital abroad recently
The premier said the government:
financial measures must be passed as
unit
IF the Chamber consents to infiat
ing without a corresponding increase
in taxes either as a forced loan oil
in other manner, il will be rendering {
a bad service to the country and in
jure it's economic life he declared.
Bank Confirms Excess.
The Bank of Frances weekly state.
ment issued today, finally confirms
the parliamentary revelations thai
the circulation had been increased
more than 1000. 100000 francs beyond
the legal limits. 1t gave the advance:
TO the State as only $4,000, ,000. 00(
francs. the exact legal limit, although
the government has admitted the ex-
cess went to it and that the limit
has been exceeded.
Authority for these increases. how
ever, was given the bank by the gov
ernment in a convention, the ratifica
tion of which is pending in Parlia-
ment The bank. therefore, consider.
itself covered. although technically
the authorization must become Law
before 1t is really effective.
Just how the extra 2,000, coo. .00(
francs of advances could be carried
in the statement without the public
realizing it is shown by. the sudder
drop of 1,150,oo0.000 francs in thu
miscellaneous" item in the liabili
ties and the increase of 1000, ,000, 00t
francs in the miscellaneous" under
the assets. The bank, however. al
though advancing the 1000. 000, ,00'
francs without parliamentary author
ity, had collateral in the shape of ma
tional defense bonds which the gov
mt ncif fa6 ri