Ashburton Guardian Magna est Veritas et Prævalebit SATURDAY, NOVEMBER 19, 1938. FRENCH FINANCE.

Ashburton Guardian, Volume 59, Issue 34, 19 November 1938, Page 6

Ashburton Guardian Magna est Veritas et Prævalebit SATURDAY, NOVEMBER 19, 1938. FRENCH FINANCE.

The series of decree measures Issued in France are designed to what has been described as a crisis created by the recent European situation and the emergency mobilisation it necessitated. But while the immediate cause was the extraordinary expenditure the difficulty that has arisen is due in great part to the fact, as stated by the Minister of Finance, that France has been exhausting her capital and living on reserves, as the result of eight years depression. Her production is only onefourth of Germany’s. Building is at a standstill. Her shipping is now only in eighth position in the world. Loans are needed everywhere. The laws of the capitalist regime must be obeyed, said M. Reynaud, who added that France could not break the agreement binding her and the British and American exchanges could not be controlled. The new proposals constitute a retreat from the policy inaugurated by M. Blum and the Popular Front Government when they gained office over two years ago. The five-day week is to give place to one of five and a half days, although there is no mention of modifying the 40-hour limitation further than has been done. There is to be civil service retrenchment by a reduction of personnel, but salaries are to be raised for those who remain in employment. A readjustment of pensions is mentioned, without any explanation of its nature. Along with these measures are drastic taxation increases, and higher transport charges and postal rates. A revaluation of the gold reserves of the Bank of France* a move postponed when the franc itself was revalued this year, is announced also. The gain on paper will be £ 170,000,000”“a further dose of disguised inflation, as it was described in advance in London. In short, France is still trying a mixture of expedients to deal with a situation which was created by meeting depression conditions with an expansionist policy.