Evening star., 1936-07-05


Blum's urgent request have brought
about an increase of IS per cent in
the production costs of French IN
dustry-an increase which Is bound
to cripple French foreign trade and
increase substantially the cost Of liv-
ing. The industrialists who were
browbeaten into accepting these terms
say they cannot adjust themselves to
them. The workers have announced
that the increase of wages must be
considered only as q temporary meas
ure and will have to be increased
further as soon as the cost of living
goes up again. 1t is a vicious circle
for which there seems to be no solu-
ton; the increase of wages brings
about an increase in the cost of liv-
ing, which again causes an increase Of
wages and so on.
There was nothing revolutionary in
the original demands of the laboring
class for an increase of wages and
shortening Of hours. It Is the mode
In which these measures have been
adopted, the yielding to mild violence
OF the workers, which have introduced
the revolutionary element in these
demands. And the agents of the
Communist party - obeying orders
from Moscow, the French nationalists
say-are spreading the revolutionary
idea. One Of the pamphlets which Is
being distributed throughout the
country in hundreds of thousands of
copies, reads: workers, employees and
peasants. You will be the master Of
France If you follow us. Look what
we have been able to obtain in eight
days (the eight days which followed
Blum's coming into office) without
firing a shot. Our revolution need
not be a bloody one. Just assert your
selves by occupying the establish
ments Of the capitalists and you will
obtain with the help of the govern
ment everything you have not had
heretofore"
Financial Plight Increases.
And, while the gold fees France,
while the workers play with their
employers like cat with a mouse,
and the government looks impotently
at these developments, the financial
plight Of France is increasing every
day. In order to placate those on
the governments pay roll, NJ Vincent
Auriol, the minister of finance, has
suppressed the law which cut the
salaries Of the government officials
and resulted in saving of $40, ,000, 900
a year to the treasury. In order to
fulfill its pledge to relieve unemploy-
ment and provide the working masses
with more comforts-new houses.
swimming pools, Fairgrounds, etc
the Blum government has obtained
from the Chamber a 100000 900 ap-
preparation.
Where is the money coming from?
For a while the Banque de France
will be compelled to advance the
needed sums to the treasury" but
this game cannot go on for long.
New taxes on the sock the rich" tune
are being prepared, but it is doubtful
that they will give satisfactory
yield. A loan abroad, especially in
the United States. appears now out
Of the question, even to M. Blum and
his financial advisers. A loan in
England, while possible, seems i'm
probable. The city Is not sentimental
about loans to foreign countries and
knows Frances predicament better
than M. Blum himself. OF course,
the administration is talking about
restoring confidence by its decision
to maintain the gold standard. It
hopes to float an internal loan to
cover increasing government expendi-
lures. Joseph Caillaux tried this in
1925, when he was Herriot's minister
OF finance. Although the situation
then was better than it Is at present.
the French national loan of 1925
proved complete flop.
Frances tragedy is not her own: 1t
Is the tragedy of Europe and indi-
rectly affects this country, too, be-
cause the weakening of a European
power has an immediate repercussion
on the Far Eastern situation. Everv
time another stone is taken out of
the foundation of postwar Europe
the structure of the peace edifice be-
comes weaker. Despite the previous
lnylelding attitude toward DO
lltlcal compromise with her defeated
ne1ghbors and despite her being, in
the past, the leader in the armament
race, France has been a highly re-
spected and feared nation in Europe.
AS such she has been able to main
tain for the last Is years a status
quo which, bad as it was, has pre-
vented the outbreak of a war on the
continent.
Allies Ready to Bolt.
Now Frances allies, especially the
Little Entente, realizing the hope
lessness Of the situation, are ready
to abandon her and are seeking help
elsewhere. Some of these nations
are looking toward Mussolini, others
toward Hitler.
At the last meeting of the rulers of
;he Little Entente in Bucharest, a
month ago, neither King Carol nor
Prince Paul of Yugoslavia nor Benes,
he President of Czechoslovakia, mem
Toned the name of France once in
heir official communiques or in their
public speeches. In the past they
spoke about their solemn engagements
and the preservation of peace with the
1elp Of "our great ally, France" At the
Bucharest meeting the alliance with
5he great republic was overlooked. Not |
hat these pillars of the French Euro
oean peace system want to abandon |
;he French. But they are waiting for |
developments. They are waiting to |
zee what will come out of the present |
chaotic situation.
And there seem to be only two pos
;ibilities-either the nationalist groups
will succeed in overthrowing the pres
mt regimes and set themselves up as
some kind Of government, which will
'ule without the help of parliament
or else the Blum administra-
lion will be pushed out of ONCE by the
extreme radicals and the Communists,
who will give their country some sort
If a neobolshevism form OF govern
nent.