Evening star., 1925-04-07
CAPITAL LEVY BILL
OFFERED IN PARIS;
DEBATE TOMORROW
Increase in Circulation Also
Proposed to Ease Bank of
Frances Situation.
CHANCE GIVEN TO PAY
EXACTION VOLUNTARILY
Compulsion Will Be Applied if Re.
suits Are Inadequate-Lines
Taut for Discussion.
BY the Associated Press.

BY the Associated Press.
PARIS. April THE governments
new financial bill, embodying the
provisions for the proposed capital
levy, or forced loan, was introduced
in the Chamber of Deputies this aft
ernooH by Finance Minister de Mon
vie. The measure was agreed to by
rhe cabinet this morning. He asked
;ts imm ediate reference to the finance
committee and report on it before
the end of the day.
The governments financial plan
also includes regularizing the cur
rency situation by raising the limit
of the bank bill issue by the Bank
of France from forty-one billion to
a total of .forty-five billion francs
and increasing the limit of advances
by the bank to the state by four
billion francs.
NJ. de Monzie asked the chamber to
set aside tomorrow afternoons sit
Of the finance bill and the chamber
agreed to this.
Premier VIII Appear.
Owing to the extremely important
nature of this bill and the public
anxiety which must and will be re-
assured" said the finance minister,
the government will be at the
chambers disposition tomorrow"
1t was announced that both Pre-
mier Herriott and Finance Minister
de Monzie would appear at once be-
fore the finance commission.
Then in an atmosphere still heavily
charged with suppressed excitement
the chamber turned to the discus
sion of woman suffrage.
BY this afternoons action what was
virtually q 24hour truce was arranged
between the government and the op-
position, leaving the real battle on the
governments bill for the adoption of
the monetary circulation to be staged
tomorrow afternoon
May Divide Proposals.
There is a probability that the part
Of the bill asking authority for the
issue of four billion francs in addt-
tionai paper circulation will be xsepae,
rated from the voluntary forced loan
or capital levy" part of the measure.
The circulation increase must be voted
before Thursday, while the other part
of the bill need not be acted upon for
q few days or perhaps weeks.
The mechanism of the system as ex-
planned by the finance minister after
adjournment of this mornings cabinet
meeting is intended to afford property
owners and capitalists of France a
chance to come forward and contribute
proportionately to their wealth to the
renovation of French finances.
1t contains provisions obliging them
to do so II they refrain from volun-
tary subscription.
Circulation Is Raised.
Section l of the financial bill
reads: The maximum of paper cir
culation by the Bank of France and
its branches, which was fixed at 41,000,-
600 900 francs in 1920, is raised tempo
rarily to $4,000. 100000 francs. 1t may
be diminished by decree"
The convention made April 7. 1925,
between the minister of finance and
the governor Of the Bank of France,
is sanctioned. Said convention is
exempted from stamp duties and
registration"
The first article of section says:
THE minister of finance is author
lied to accept subscriptions giving
the right to government perpetual
stock, which will be inscribed in a
special section in the public debt
record
Interest Per Cent.
The remaining six articles in this
section fix the interest on the stock
thus issued at ; per cent and give a
list of securities which will be ac-
cepted in payment of the voluntary
loan-Treasury bonds, short and long
term Government stocks and COM
nercial paper with three signatures
accepted by the Bank of France.
The third section of the bill de-
fines the classes of wealth which
must pay the exception subscription,
such as real estate, agricultural prof
its, industrial and commercial profits,
mines and stocks: the text thus con-
frming the forecasts that salaries
would not be included in this category.
Penalty For Not Paying.
The bill says that those failing to
pay the exceptional subscription to
the extent of one-tenth of their
wealth will be subject to an excep-
tional tax to that amount or to the
amount they fail to pay.
The preamble to the financial bill
admits that the authorized amount
of paper currency issuable by the
Bank of France has been exceeded,
as the bank has made advances to
the state beyond the legal limit. The
excess In circulation, it is declared,
was scattered among various items
Of the banks weekly statement
1T Is a piebiscite on the question of
free, voluntary contribution, each ac-
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