French government resigns
After a defeat in the Chamber by 290 votes to 265 the French government has decided to resign.
The vote was on the question of the immunity of the new rente, meaning the income from capital investment, from taxation. The government had been in favour of the immunity.
Prime Minister Caillaux said in opposing the provision, the proposal would be going back on the vote passed by the Chamber in March 1908 by a large majority and would be destructive to the income tax bill which is before the senate at present.
The crisis creates a situation, the gravity of which is recognised by all political parties. The immediate consequence is to postpone the raising of the national loan for an indefinite period.
The president has accepted the resignation of the Cabinet but has requested that the retiring ministers continue the conduct of affairs in the interim.