Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-08
The Story the Week Has Told

OF Improvement which contemplates
the opposite of that decadence of the
port propheSied by the super Jobs
The enterprise will absorb a goodly
number of the unemployed and will
be assisted from the government un.
employed grads"
Old Leo Britannicus is rather up
against it. but evidently is not ex-
actly down and out.
France.-On July 81 Poincare's
fiscal bill was passed by the Chamber,
without amendment and almost with
out debate, 295 to 1873. On August 3
it was passed by the Senate, $50 to 10.
1t is officially estimated that the reve-
nue. from the new taxation will be
2,458, 5000 900 francs in 1926 and 1892
100000 francs in 1927; increasing the
total OF taxation by about rs per cent.
The Bank of France. has raised it's
discount rate from to 71a per cent,
in the hope of thereby winning
home eXpatriated capital, and the
interest rates on short term bonds
have been raised in order to encour-
age renewal
Next bill providing for establish
ment of sinking fund for amortiza-
ton of the floating debt, to be fed
from profits of the tobacco monopoly
and from certain categories of taxa
ton (e.g., succession dues specifically
allotted to it. On Thursday the
Chamber passed it by a huge majority.
In submitting the bill to the Chamber,
Poincare observed: When you have
voted this sinking fund plan, you will
have taken a second step toward
raising and stabilizing the franc The
government has already obtained ap-
preciable results with regard to ex-
change. | do not, however, yet con.
slider them definitely acquired. They
must be held and developed"
In fact, as Poincare was talking,
the franc was having a relapse mot
very serious but appreciable) after a
magnificent rally. The bill was offered
with the proviso that, should it pass
both houses, it would be submitted to
the National Assembly de, the two
houses of Parliament sitting in joint
session at Versailles for incorporation
into the constitution; the idea being
correct that the sinking fund should
be safe from tampering with by
Parliament in the ordinary course of
procedure.
Next a bill authorizing the Bank
of France to purchase gold and for.
eign currencieS for defense of the
franc and for fertilization of the metal
reserve of the bank, as recommended
by the Commission of Experts" Elk
cellent; but note the following: The
bill authorizes the bank to issue notes
to total corresponding to the total
of gold and foreign currencies pur-
chased. such emission to be outside
the provisions of the act fixing the
maximum limit of note circulation.
This provision has been criticized
as disguised imitation" in anticipa-
ton of which criticism a preamble to
the bill states: ut is clear that notes
issued in exchange for metal and cur
rencies cannot be considered as mere
imitation, as they will be covered at
10 per cent in any event; this gold and
the gold currency will strengthen the
reserve in proportion to the total ennis
SION
The technical point is a very pretty
one but it is probably correct to say
that the highly desirable purchase of
gold and foreign currencies would
not be feasible on an important scale
without corresponding increase in the
note circulation. Yet it cannot be
denied that the proposal is a little per-
turbing.
Inc same Dill Includes the follow
ing article: The minister of finance is
authorized during three months fol-
lowing PRONUNCIATION of the present
law to make with the government and
the Bank of France all conventions
required to enable the latter to pre-
pare for sterilization of the national
money" Here is power of decree
with a wanion." Precisely the issue
on which CaillauX was brOken-on
August the Chamber voted the bill,
almost without discussion, 365 to 1S1,
and its passage in the Senate seemed
certain.
There is d certain WeirdneSS about
the mastery exercised by Poincare
and the unVbnted docility Of the