Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-28
|PO|NCARE SHELVES
DEBT P'ACTS UNTIL
AT TER LONG RECESS
Announces Agreements Will
Not Be Brought Up Until
Chamber Reconvenes.
NEW FINANCE PROGRAM
AROUSES SKEPTlCISM
Economists Doubt Plan Will Stabi-
lie Franc or Result in Bal
ancing Of Budget.
Ry the Associaied Presa.

BY the Associ ated Press
PARIS, July 2s--Premier Poincare
told the Chamber of Deputies finance
committee today that he would not in
troduce the Washington and London
debt funding agreements for raufica-
ton before the Chambers vacation.
NJ. Poincare's overwhelming politi
cal success, achieved through the vot-
ing In the Chamber of Deputies yes.
terday. is received with general relief.
but his financial scheme arouses less
enthusiasm
His critics among the Communist
declare he will get 1900, 900 900 francs
from fresh taxes. but that most Of the
money will come through general In
come tax.
Some economists doubt whether the
plan will sufice to stabilize the franc
or even really balance the budget, and
are inclined to look Upon 1t rather in
the light of a temporary remedy.
Lucien Romier, one of the country's
leading economic writer's, says in lie
Figaro that, IL the opposition is slight
in the Chamber. 1t will rapidly grow
in the country itself IN consequence OF
the hardships which the new taxes
cannot fail to create.
Sees Success In Haste.
Therefore. he adds, the success Of
the governments monetary policy
must be rapid enough to forestall the
effects of a wave of discomfort which
will call everything into question
again.
The treasury Is no longer in a po-
sition to meet normal payments. and
the government once more must re-
sort to additional taxation. First will
come indirect. taxation, because such
returns are immediate. Although the
sacrifice demanded of the country Is
heavy. II is pointed out such measures
are less dangerous than inhation. The
increased revenues will be turned
over to a sinking fund for the gradual
redemption of national defense bonds.
The bill itself comprises 20 articles,
the first Of which authorizes the gov
ernment to legislate by decree until
December 81, 1925, with respect to
the discharge or removal of employees
In the state services.
Article 2 gives the government au-
thority to readjust by decree taxes, ac.
cording to the present value of the
currency, in no case higher than six
times the existing rates of July, 1914.
for taxes existing on that date, and
six times the original amount of the
taxes created since then.
Liquor Tax Provided.
Articles 3, and 5 provide for ad
ditional tax on beers, wines and min
eral waters, railroad passenger fares
and automobiles.
Articles s, Z, 8, Q and 10 deal with
river and canal freights, imposing a
tax of por cent on the value of the
freight. Article IL fixes a business
turnover tax at the uniform rate of
2 per cent.
Article IL concerns the turnover
taxes on export business, which will
pay IL per cent on luxury articles,
and 100 per cent on other commodi-
ties. Articles 13, IA and Is are taken
up with the customs tariff. The gov
ernment is empowered to readjust
these levies by decree.
Article 16 increases by so per cent
the income tax on stocks and bonds.
Article II reduces the tax on stock
exchange transactions.
Articles IS, 10 and 20 deal with a
special supplementary tax on first
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o.S s.s.r,+anea +.xss ~ nrov;daS
~ Az +a-ss - cer+o,r ,,,.+arees
shall not exceed 2 per cent in the case
of direct descenda nts. 35 per cent for
collateral and 40 per cent for non-re-
lated legatees. The proceeds of both
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