Evening star., 1935-03-24
CAN FLANDIN AND LAVAL
SAVE FRANCE In CRISIS?
Commentator Wonders if They Offer
Solution to international and
Domestic Difficulties.

under arrest on the day OF general mo-
bilization-an experience from which
he was probably saved by Malvy.
In the same manner as Flandin's
ancestors, Laval has now developed
an extremely conservative tendency.
He is really a pillar of society and
his charming daughter is favorite
in some exclusive sets Of young people.
1t is really refreshing to record how
easily the boldest adopts of revolution
spend the second part of their lives
in making the present social Organi-
zation profit by the political credit
they managed to create for them
selves, in the first part. through the
propagation of Subversive ideas.
The gods never gave Laval the gift
of eloquence; shrewdneSs led him
along Do not believe that having
been turned toward moderation he
has parted with his former friends:
he has remained on good terms with
them, especially if they happen TO be
journalists. He can be a generous
benefactor.
Such is the team which now man.
ages national affairs. So far it has
the one hand. Flandin has scrapped
Doumergue's constitutional reform to
the delight of the advanced parties
which did not relish the prospect of
having to live under the threat of
parliamentary dissolution. He means
to do whatever he can TO diSarm the
leagues" which forced the cartel
list regime to surrender in February,
1884. On the other hand. he attended
the mass of commemoration cele-
brated at Notre Dame on February
to the intense irritation of the old
school.
In the financial and economic field
he has balanced the budget Ton
paper. but has not been able to
check the falling off of tax receipts.
Out of that failure-which can be
ascribed only to causes over which he
has no control-the dreaded deficit
of the budget is bound to appear
again. Public finances cannot be re-
habilitated for good until economic
life has been revived-in other words,
until the costs of production have
been brought beneath the level OF
selling prices.
Attacks Interest.
The most effective manner to
achieve that END would be to de-
valuate the currency; but since that
operation in France would be fraught
with political and social repercussIons
OF tremendous extent, Flandln can
hardly do otherwise than attempt q
direct compression of costs by reduc-
ing their least rigid element-for
instance, the rate of interest. For
that purpose he has resolved that
the state shall no longer borrow on
the long term market, but shall fill
up the deficit tabout 14,0000O0,000
francs this year, by issuing treasury
bonds that the Bank Of France, con-
trary to orthodox practice, would be
authorized to rediScount. So far no.
body can tell whether such an ar
rangement will do anything but enable
the state to get easily in debt. 1t is
said by many that Flandin is follow
ing the example set by President
Hoover with his Reconstruction FL
nance Corp.
simultaneously, an effort has been
made to let the wheat and wine
markets find their natural level Of
prices, the estimated surplus in both
cases being withdrawn from the mar
ket at the governments expense in
order to eliminate the influence of
overproduction. 1t is too soon to pass
| judgment; but agricultural prices seem
to have sunk little deeper-although
they are still twice as high as world
prices-and therefore general discon-
| tent in the rural districts is on the
| increase. On the surface. at any
rate, we are passing through the
stages of Hoovers administration in
America.
AS to Laval, so far he has Jared
more fortunately. On his arrival at
the Quai d'Orsay. when he took stock
of the international situation he
seemed to be the gloomiest man on
earth. He behaved as the peasant
who is about to buy bit of land and
carefully emphasizes all its disad-
vantages. OF course, fundamentals
have not been altered during the last
three months. But the problem of
the Saar has been solved (by the
way, French prestige materially Suf-
fered in the plebiscite); the conflict
between the Little Entente and Hun
gary about the responsibility incurred
by the latter in preparation for the
| MarSellle murder has been leSSened;
Franco-Italian relations have been
improved and there is even a pros
pect of France and England joining
hands against the German menace.
Fate Shapes Policy.
From the point of view of French
interests, the really auspicious change
is that France has never been nearer
to her goal-the formation of
group of powers strong enough to
save the peace treaties. But curiously
enough, most of these DEVELOPMENTS
have been forced upon Laval by cir
cumstances, with the exception of the
journey to Italy it cannot be said that
he really intended to do what he
has done. A move by the British
government (as regards the dispatch
of international troops to the Saar);
virtual ultimatum of the Little En-
tente; the threatening exhortations of
Russia; the belated realization of the
German peril by the British cabinet,
as distinct from the British people
these things have contributed power
fully to shaping French policy as it
stands today. Laval's personal de-
sign was to seek an interview with
Hitler and wrest some kind of settle
ment from him. However, he has
had to move in the opposite direction.
On the whole. the Flandin-Laval
cabinet has proved more competent
than the Radical-Socialist ministries
OF the 1932-34 era. But something
more is required to deal adequately
with the economic and international
difficulties and with Frances internal
crisis. A strong leadership must be
found somewhere; this bids fair to
become a psychological necessity. Ex-
isting parties and factions do not
supply it. Where are we going to
find it?
Such is the anxious question that
will be put, time after time, in the
forthcoming elections; municipal elec-
tions next month. senatorial elections