MEETING FRENCH CRISIS

New Zealand Herald, Volume LXXV, Issue 23194, 14 November 1938, Page 8

MEETING FRENCH CRISIS

The series of decree measures issued in France are designed to meet what has been described as the crisis created by the recent European situation and the emergency mobilisation it necessitated. The cost of the mobilisation was reported to have been something like £55,000,000, and this unexpected charge was blamed for wrecking Budget prospects. Consequently the Government was given powers to issue ' by decree the necessary measures of rehabilitation. Now that those powers, granted at the beginning of last month, have been exercised, Ministerial broadcasts describe the financial crisis as something of much longer standing. The Prime Minister, M. Daladier, told the public that France had been existing on her reserves, or living on capital, as the result of eight years of depression. More than that, it can be said to be a retreat in large measure from the policy imposed in so heavy a dose by M. Blum and the Popular Front Government when they gained office in June, 1936. The fxve-day week is to give place to one of five and a-half days, although there is no mention of modifying the 40-houx 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 earlier this year, is announced also. The gain on paper will be £1*70,000,000 —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.;