FRANCE'S PROBLEMS

Poverty Bay Herald, Volume LXIII, Issue 19128, 24 September 1936, Page 12

FRANCE'S PROBLEMS

SHORTAGE OF FINANCE

RELIEF FOR INDUSTRY

PARIS, July 5

There are abundant indications that, despite goodwill, the Government is finding it more difficult than was expected to find immediate relief for the troubles caused the industrial and commercial community by the recent efforts to give the French working classes a "new deal."

M. Spinasse, -Minister of National Economy, announced in the middle of June that "a whole series of measures" would be ready in the following week to enable producers to get over the "few weeks" which he estimated would be required before France was again on the high road to prosperity. So far. none of these measures has been made public. The end of the month, as shown by the Bank of France's statement published yesterday, found the Treasury with its bank balance reduced, though it availed itself of the new borrowing facilities to the extent of £6,5C0.0C0 in a week. At the same time a large proportion of the country's 8500 industrial undertakings employing over 100 hands found themselves deprived of sufficient liquid resources to meet monthly wages. PRIVATE RANKS HELP The State plans for furnishing flic necessary relief appear to be for the r?TC* ? ~"'' : '-"—■- X] yf»-^'.J' «,,,;.-«•>.^tp£\.-«,

present limited to the help which _ has been freely proffered by the big private banks. These banks are dependent on the guarantee of the Bank of Frapee, which, in its turn, is guaranteed bv the State.

The real difficulties in the French industrial community, however, have- been caused, not- so much by the recent labour upheavals as by the long scries of drives against the franc, since the spring of 1935, and the abnormally high discount and other rates which have rendered credit facilities so costly during the past 15 months.

The Government still remains silent as to its exact plans for meeting the rapidly increasing public expenditure. The recent all-round wage increases will, of course, have a serious repercussion on the Budget in respect of the pay of the arnry of some BCO.GOO public servants. Under this heading alone the burden on the taxpayer is expected to lie increased by from £50.000.000 to £55,000,OCO a year. Industry, proportionately, will suffer still more seriously. Manj concerns will undoubtedly require very substantial "shoring up" by the State if they are to be saved from having to closedown and thus enormously to increase unemployment. There are reports to-day that the Government is considering utilising, for this purpose £6,500,000 of the money which it has been authorised to borrow from the Bank of Fiance.

This expenditure, it is suggested, will be reimbursed from the contemplated "popular loan issue for the salvation-of the franc."