Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, THURSDAY, JUNE 11, 1936. PROBLEMS OF FRANCE

Poverty Bay Herald, Volume LXIII, Issue 19038, 11 June 1936, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, THURSDAY, JUNE 11, 1936. PROBLEMS OF FRANCE

The mew French Government has commenced its term of offieo under extremely difficult conditions, and at lliis early stage it is not possible' to say whether its greatest problems will be created by its friends or its enemies. 'On the one hand the workers, without waiting to give M. Bhun and his colleagues time to put their programme into effect, have created serious embarrassments and fostered widespread industrial disorders which, whatever the ultimate results, must have an immediate reaction on the conditions of the workers themselves. On the other side there has beon the panic created by tho uncertain financial outlook and the consequent lack of confidence. Both these factors have had the effect of retarding

national recovery, and .so long a.s the nation as a whole is impoverished, by whatever means and in whatever directions, then the individuals cannot hope to "enjoy that measure- of prosperity' for \vhieh they are siriving. The fear of the possible results of a 'socialistic programme has doubtless been exaggerated and exploited for political ends, but that docs not alter the fact that the fear is there, and that it is the outcome of statements made by supporters of the Government. The continued exodus of capital which is so urgently needed for internal development, the run on the savings bands, the threat, to the franc, and tho huge Budget deficiencies are influences which cannot be ignored. This is one form of pressure which the Government has to endeavour to withstand, and it: is precisely these difficulties that have caused others in different directions and for which remedies are demanded. With the national finances in a precarious position the scope for industrial activity is 1 inevitably restricted, but those eugaged in industry arc none the less insistent in their clamour for relief. Caught in this cleft stick, M. Blum has to try and devise a policy that will give concessions to his ' supporters without aggravating the financial and economic problems. The programme he has outlined 'has gone-a long way towards restoring confidence. He has made a strong bid for industrial peace and at the same time has given assurances that no reactionary measures will be adopted. In other words, he is striving to follow a middle course, but whether he will bo able to camout his plans remains to bo seen. His greatest obstacle is tho old financial problem that has confronted every French .Government of whatever complexion. France, remaining rigidly on a gold basis, has to compete with other countries that 'have devalued their currencies, and while this position remains there is little prospect of tho national industries being revived. On the other hand, if a policy of devaluation were adopted it might create another currency panic, although it is probable that fears in this direction are largely without foundation,. In any case, M. Blum has declared himself against the abandonment of the gold standard, so that some alternative remedy must be devised. Where is it to bo found? The country already is taxed to the limit and economies in the administration have, in the past, proved to be virtually impossible. From an economic and financial point of view, therefore, France appears to be confronted with a brick wall which cannot easily be surmounted. And this is only one of the Government's problems, for on the political side it is liable to be seriously embarrassed. It is true that the first division gave- M. Blum a vote of confidence by :'.84 votes to 210, a majority that would seem to ensure stability for some considerable time to oomo. Ani analysis of the parties, however, suggests that the 210 Opposition votes represent a permanent minimum, while the Government's support is liable to defection from either ond. The Communists alone have sufficient strength to turn the scales, and although they are giving the Government general support they have refused actually to join it |pul make no secret of the fact that they intend to'use their balance of power to further their demands. Nor can M. Blum depend entirely on the support of the Radicals, at whose expense the Socialist and Communist gains were largely made. Although parties to the original Front Populaire agreement, tho Radicals arc by no means satisfied with the position, and if the Government shows signs of going to extremes they will not hesitate to desert. There is still good reason to doubt, therefore, whether France has yet obtained that stable Government which is so vital to her domestic recovery, and until this point is reached the rest of the world, and Europe in particular, will have cause for serious concern, ftntil France is in a position to overcome her own political dissention and to take her part in the leadership of Europe and thereby assist in the straightening out of the widespread international confusion the prospects of peace will remain in doubt and the danger of something even more serious will not be removed.