Evening star., 1925-04-08
LEVY STIRS ALL CLASSES.
Crucial Point Reached Between
Opposing Economic Schools.
By CoNsTANTINE BROWN.

By Cable to The star and Chicago Daily News.
PARIS. April s.-The governments
financial projects continue TO be the
main topic of discussion among all
classes of French people. On the
whole, very few people seem to favor
this dissimulated capital levy. and an
influential member of the Chamber OF
Commerce said to the writer today:
we are alarmed because our worst
fears seem to have come true. From
voluntary contributions to a capital
levy. and from a capital levy to abol-
ishment of property and confscati tion
of capital is only a short step"
But even those who do not possess
capital and, consequently, are not
likely to be hit by voluntary contri-
buttons seem fiabbergasted at recent
developments, accusing the govern
ment of wanton deceit in all speeches
from the rostrum in the Chamber of
Deputies, as well as a I popular meet
ings, where members of the cabinet
solemnly announced they were con-
frmed opponents of imitation. 1t was
known at the time by everybody con-
nected with the ministry of finance
that the Banque de France had al
ready exceeded its issue of paper
money limited by law to 1900, 900, 900
francs by more than s1oo,0o0,00
AmaZement Increased.
Public amazement is further in
creased by the fact that last week
NJ. Clementel announced the day be-
fore he resigned as finance minister
that he must demand that Parliament
authorize the Banque de France to
increase its bank note circulation by
some $250,0oe,000, not to assist the
treasury but to help out private
trade. which was suffering from a
shortage of bank notes.
Forty-eight hours later the govern
ment stated frankly that a new issue
of 1000, 10000 paper francs would be
used to cover treasury deficits. Dis
cussing the situation with the writer
one of Premier Herriot's stanehest
supporters in the chamber said:
I'VE have all seen the crisis coming
ever since M. Herriot took Office. The
battle will be opened now between
capitalists and Socialists. The for
mer criticize and oppose all Socialist
plans for improving Frances fnan-
measures, such as capital levy,
which in our opinion Is the only pos
sble solution of our present
straits. They never come out for any
constructive suggestion as to how
the problem could be solved other
wise. because they dare not announce
publicly that their only solution is
imitation.
Recalls German Policy.
Imitation, of course, would mean
reduction and almost cancellation of
the public debt, but we Socialists
have seen that the classes which
suffered most terrible hardships in
Germany were the working classes,
while the capitalists who possessed
foreign currency were as well off,
If not better off, than in the old
days.
I'VE will not stand for such a
policy, and insist that a capital levy
is the only equitable solution. If the
government falls we have decided TO
bring the matter before the people
again and open their eyes TO the
disastrous results of an imitation policy
not only on Frances credit abroad,
but on the welfare of the nation"
Members of the abinet, while moi
using the same frank language, ad-
nit that the capital levy Is the only
issue of the present crisis and they
are determined to see 1t through
tCopyFght, 1925, by Chicago Daily News co.,