Evening star., 1925-06-13
CA|LLAUX'S
ON TAX OF CAPITAL
BRINGS CRISIS NEAR
Socialist Bugbear May
Wreck PainIeve Cabinet.
Truce Is Temporary.
LITTLE PROSPECT SEEN
OF AGREEMENT ON ISSUE
Finance Minister Urges Thrift and
Retrenchment in All Ex-
penditures.
Nv the Associated Press.

BY the Associated Press.
PARIS. June 13.-The bugbear Of a
capital levy, invoked by the Socialists,
still threatened both the Painleve cab
met and the Left bloc of Parliament
today. 1t seemed probable that the
firmness of Finance Minister Call
1aux in opposing the capital levy de-
manded by the Socialists would mean
the wrecking Of either the govern
ment or the Left bloc, or possibly
both.
At the same time it was recognized
pn each side that this, like so many
others in recent French politics, might
blow over, and that some simple solu-
tion might be found. at least tempo
rsrily, for what now appears to be a
hopeless tangle.
1t was admitted today that yester-
days truce between the cabinet and
the parties of the Left only covered
secondary points and left the general
situation unchanged.
Socialists Stand Firm.
Socialist leaders said their slogan
continued to be Take the money from
where 1t is," that Is, from the wealth
Ter classes, under a capital levy. This.
they said, was the paramount issue,
with little prospect of a compromise.
The rank and file of the Socialists are
pressing their leaders not to yield, ap-
parently because of fear that the lead
ers might sacrifice the principles OF
the party in order to secure Individual
power in the government.
Along with the other phases OF the
financial reforms which Finance Min
CT 20
good of the country is a policy OF
strict retrenchment in governmental
expenditures.
In urging economy to his fellow
cabinet members today, NJ. Caillaux
empha sized that if the confidence of
the world was hoped for it could be
had only if France lived within its
income. And, he added, that income
must be derived from taxation alone.
Agree on Cut.
1t was learned after the meeting
that the ministers Were in agreement
that expenses should be cut, and
promised to do everything possible
to foster curtailment. The only other
announcement was definite agree
ment that 1900 900 900 francs of this
years Dawes plan payments would be
used as budget receipts. Next year,
however, these payments Will go 10
the payment of French debts. recon
struction expenses and other purposes
NJ. Caillaux probably will appear
again before the finance committee
of the Chamber of Deputies on Mon
day, as his financial reform bill %ill
come up for open discussion in the
chamber on Tuesday.
The Dawes plan receipts for 1925,
so far as they concern France, were
the subject of study by the chamber
finance committee today in connection
with the work of the committee in
drafting it's report on the financial
bill for presentation to parliament
The committee insists that France
will receive only 1,0O0,000,0O0 francs
under the Dawes plan in 1925 instead
of ,239, ,000, 900 francs, as estimated in
the original budget prepared by NJ.
Clementel, who preceded Nj. Caillaux
as finance minister.
The committee decided to ask NJ
Caillaux for further details as to the
exact amounts to be derived from the
reparations payments. These details
will be furnished by Seymour Parker
Gilbert, agent general for reparation
payments.