Evening star., 1936-06-19

By the Associated Press.
PARIS. June 19-Vincent Auriol,
minister of finance, declared today
in the Chamber of Deputies that the
French franc will not be devalueo
and that France will strive to recover
the huge amount of gold and other
capital which has been sent abroad.
He offered amnesty to French ex-
porters of this capital, but threatened
to confiscate the goods Of those whose
frauds" were discovered.
This latter phrase referred to the
fact that French are required by law
to declare their foreign holdings to
the authorities.
Exemption Bill introduced.
In making his declaration, Auriol
introduced into the Chamber bill
which would exempt from punish
ment until July Is those who fail
to report expectation of capital.
"On the other hand" the finance
minister stated, frauds which are dis
covered will result in more severe
penalties up to the confscation of
sums equivalent to the undeclared
goods and to deprivation of civil
rights.
Negotiations will be started with
the government of neighboring coun-
tries for the joint suppression of eva
sions and tax frauds"
He added that the government
anti-devaluation declaration will end
the fear or hope" of devaluation Of
the franc, to which he attributed the
great fight of capital.
Auriol announced the government
will seek a public subscription of
short-term bonds in small denomina-
tions to be offered for sale within
few days.
Bank Financing Sought.
Meanwhile, Ito live" the govern
ment will ask the Bank of France to
finance it publicly and directly with
out shame or hypocrisy
This statement referred to the fact
that the government previously has
obtained funds from the Bank Of
France through discounting bonds.
Denying any intention to nationalize
private banks. the finance minister
said they, as we'll as corporations.
would be subjected to more strict su-
pervision.
Auriol flatly rejected the Commu-
nists' "soak the rich" proposal for a
heavy capital tax on the grounds it
would "kill the bloodless treasures of
1885," He promised instead to intro
duce bills later for tax reform and for
lower interests rates on money.
He denounced devaluationists as
would-be profiteers and called on
France to rescue its money" from
their campaign.
Reads Balance Sheet"
He read the country's financial bal
ance sheet" showing the 1886 budget
deficit already was six or seven billion
francs" despite economies and pre-
vious def1ation policies.
(The franc is currently valued at
about 6.58 cents)
Auriol introduced into the Chamber
Of Deputies bill to give the govern
ment control of the Bank of France
through decree powers.
He disclosed the bank already had
advanced $4,000 ,000, 900 francs to the
treasury by discounting bonds
The finance minister reported the
treasury needed more than 14,900,-
000,00 francs without counting the
cost Of restoring the pay and pensions
Of government employees and veterans
to the levels from which they were
cut by government DEGREES.
He said the treasury's only imme-
diate resources were $40, ,000, 900 francs
in bonds remaining to be issued.
Auriol told the Chamber that Co.
000, 900 900 francs were being boarded,
including $4,000, 100000 sent abroad
since January, 1885.
The minister said he placed his
faith in economic recovery to solve
the governments financial difiiculties.