POPULAR CAMPAIGN

Otago Daily Times, Issue 26354, 8 January 1947, Page 6

POPULAR CAMPAIGN

STABILISATION OF THE FRANC WIDESPREAD CO-OPERATION (Special Correspondent) (Rec. 11 p.m.) ' LONDON, Jan. 7. - The progress of M. Blum’s campaign to stabilise the franc and reduce French prices by decree is being followed in Britain with close interest and sympathy. Sceptics who argued that the political uncertainties and divisions which at present beset France, foredoom the experiment to failure, are already partially confounded by reports that the campaign had been taken up in the cities with considerable enthusiasm, and that the first 5 per cent, reduction decreed by M. Blum had already been made with surprisingly little argument or evasion. Although the reactions of the rural

communities were more uncertain, the Minister of Agriculture, M. Tanguy Prigent, told farmers that they should co-operate in their own interests in order to - safeguard the • value of the goods and francs they hoarded.

Extensive Campaign Introduced The price cuts have been introduced by an extensive radio and press campaign. The public was asked immediately to lay information against any shopkeepers not imposing the cuts,, and several leading newspapers offered free space for the publication of the names of firms or individuals who refused to co-operate. The Government also proposed a form of price control commissions of traders and consumers in every commune of more than 10,000 inhabitants. The shops which give a lead in obeying the decree will be given free radio and press publicity. In Paris the Left Wing press is inveighing against some of the big wholesalers, who are accused of trying to sabotage the campaign, but preliminary reports indicate that a great majority of retailers and a large number of wholesalers made the cuts immediately the, decree was announced. In some cases retailers went further than requested, and reduced their prices by, 10 per cent. Check Against Inflation

The chief objective of the campaign is not only to reduce prices and combat inflation, but also to restore public confidence in the franc and induce those who hold stocks of goods to release them. Previously aS a result of the lack of confidence in the currency, there have been widespread indications that many members of the public have abandoned hoarding money in favour of hoarding goods. At present the chief argument against the success of the experiment is the temporary nature of the Blum Administration, but the Communists and M.R.P. have already pledged themselves to continue the caretaker Government’s price policy. M. Blum so far has refused all invitations to remain in office after the presidential election on January 16. British correspondents report that this decision appears to be generally regretted in France, where M. Blum’s ability and integrity are admitted even by his political opponents. The second 5 per cent, cut is to be made on March 1.