Supported in Chamber but Defeated in Senate: Bank of France Note Issue Largely Exceeded and Limit of Advance to ldcaveur to return M. Herriot power. On the other hand, the formation of a coalition of Re publican parties is suggested, though success is improbable Behind the various combinations looms the prospect of dissolution This would be welcomed by the Opposition, which, now having a lead-Jer in the person of M. Millerand, reckons on turning the tables of the next elections. The indications Paris, April 9.
(here has been a new turn in the financial situation as a result meeting this morning of all the groups of the Left bloc, to which M, Loucher (who disapproves of M. Demonzie's Bill) submitted a scheme for remedying the financial stringrency by doubling the income-tax and increasing the luxury taxes and applying the proceeds to creation of debt redemption fund. At the same time the debt would be reduced by successive conversions.
"The plan was favourably received and will be submitted to the Finance Committee of the Chamber.
Thus the Left bloc, which M, De-Tnontie's Bill threatened to spi may re-unite behind M. Loucheur's The extent of the excess of the Dank note issue over the legal limi Is disclosed in the weekly. balance sheet of the Banque de France. This shows that the notes in ¢irtion amount to 43,004,762,000, franes, which is 2,004,762,000 franes above the limit, This inflation was previously concealed in two. items." on Woth sides of the balance sheet, which to-day show an increase and 4 decrease respectively of over Advances by the Banque de France to the Treasury are given as 22,000,000,000 francs, which is exwelly the legal limit, Chamber's Vote of Confidence Later. The Chamber of Deputies ote of confidence poli stitch int declared the defesidinge the poll ment in w speech lasting two hours in the Chamber of Depusies to-day, They were faced with the curious fact, M, Herriot said, that the aftermath of the war cost 165,000,- (000,000 francs in loans whereas the war had cost 145,000,000,000 francs.
Occult Borrowing, Dealing with the relations between the Treasury and the Banque France, Mr. Herriot said that the ment had only followed their predecessors, who had constantly resorted tw occult borrowing from banks. Ie mentioned that—the Poincaré Government in April, 1923, hud clandestinely borrowed 2,500, 00,000 franes from banks, He had not reveated the truth earlier, because he was convinced that France must be given a bale anced budget before an appeal for exceptional sacrifices was possible in order to help the Treasury out of a hole, for only then would the country feel that the money would be devoted to redemption of debt and not to current expenditure.
Bokanowski, for the Oppo: tion. while admitting the precedent occult borrowing, charged the Government with being the first to y for publiew. tion of valance sheet the Banque de France.
The Chamber subsequently. passed a vote of confidence in the Govern= ment,.as stated above.
Text read from the printed page and cleaned; old type leaves the occasional error.