Evening star., 1937-06-14
FRANCE MAY DROP
MONETARY TRUCE
u. S., Britain Warned to Join
Her in Lowering Tariffs or
Suffer Results.
By the Associated Press

PARIS, June l4-Paul BaStid
French minister of commerce. warned
Great Britain and the United States
today that France might be forced to
abandon the tri-partite monetary
agreement unless they meet France in
lowering tariff barriers.
His speech was made at the OPEN
Ing session of the International EX-
change Congress and followed the
raising of the Bank of Frances dis
count rate to per cent.
At the same time, Premier Leon
Blum called a special session of his
cabinet to find way out of the
financial tangle.
Pleading for simultaneous Collec-
tive efforts" to revive world exchanges,
Bastid said France had the impress
sion her action in lowering tariffs and
easing the import quota system last
Fall had been strictly unilateral.
The result has been a campaign in
France for the return to protection
and abandonment of liberal meas
ures," Bastid said.
Slam at Britain.
ut is state of mind which cam
not be neglected and it must be un-
derstood beyond our frontiers. no.
tably by our friends who signed the
trlpartlte accord"
Financial leaders interpreted the
speech as a slam against Britain S
failure TO lower empire protective
tariffs and as a bid to the United
States and Great Britain to stand BY
France in her present financial
troubles.
1t is urgently our Governments s
desire not to shut the country up in
a self-sufhcient system y but to
find support in active collaboration
with other governments" Bastid con-
tinued.
If there is not cola boration, French
opinion could not understand and no
government could resist the growing
desire for protectionlsm.
With this years deficit estimated at
4O0O0,0o0, 900 francs (sl.8ooOoO, ,OOO) +,
half of it needed for requirements, the
ministers met in Premier Blum's Office
to find a way out,
Vincent Aurlol, finance minister
told his colleagues the treasury must
reimburse the British loan of
f40,o0O,OoO ts2Oo,0OO,OOO) as we'll as
particularly heavy domestic bond
issues.
Precautionary Measure.
Relations between the government
o,,l- oy - I,o
changed. an official declared, TO the
advantage Of the treasury" He did
not, however, say how the change
would be made.
Auriol estimated new measures
would give the government from 4,O00,-
100000 to 5,OOO,oOO.O0O francs (s1sO,-
100000 to s2OO,0OO,OOO) increased rev.
enue in 1897.
officials Of the ministry Of finance
interpreted the raising of the discount
rate as a preCautlon against eventual
attacks on the franc during the COM
ing weeks of parliamentary debate over
new measures.
The discount and other rates were
raised ? per cent, for the first time
since January %
Raising of the discount rate is the
usual means of making it too eX-
pensive to send gold or other capital
abroad
Tories to Be Punished.
No excessive gold shipments were
reported as yet, and bank notes we're
reported we'll covered by 55 per cent
gold
The Peoples Front government also
organized an offensive against an
Iron ring" Of capitalists whom 1t ac-
cused of sabotaglng the soCializa ton
experiment Of Premier Leon Blum.
Blum called his cabinet into ses-
sion for debate on extraordinary
measures designed to save the ma
tons finances and at the same time
punish capitalist treason"
The bills will then be presented to
the full Council of Ministers tomor-
row and rushed to Parliament for
approval,
The measures under consideration,
sources close to the government said,
included increases in income taxes in
the upper brackets as we'll as a boost
In indirect taxes through a rise in
prices of gasoline, tobacco, matches
and stamps.
Pension Bills Drafted.
The bulk of the proceeds will go to
help meet the budget deficit But at
the same time, government spokes-
man disclosed, steps we're being taken
to divert the revenue from the higher
income groups to the lower,
Bills we're being drafted, he said,
FOR old-age pensions and insurance
against agricultural disasters to take
the sting out of the higher costs of
living for the lower classes.