The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1936-04-27
VICTORY SEEN
FOR LEFTISTS
IN RUN0vER
Results Of BaIIoting
Indicate Support Of
League

PARIS, April q 0N.SO.-BanK
of France shares dropped to their
lowest point in Is years and gov
eminent bonds and stocks gener-
ally fell sharply today following
yesterdays national elections, in
which Socialists and Communists
gained at the expense Of the Right
parties.
The Bank Of France shares hit
the lowest point they had touched
since a few days after the World
War ArmiStice in November, 1918,
as q result of the elections which,
although tnconclusive, showed q
definite trend to the left.
Canal Stocks Drop
The Bank Of France stocks fell
from 1880 francs a share, the price
quoted Saturday, to 1885 francs.
Bank of Paris shares fell from 900
to SS5. Credit LyonnaiSe dropped
from 1927 francs q share to 1855.
Suez Canal stocks fell from 1885
to 1860 francs q share.
Three per cent government
bonds dropped one franc IS CEN
times, and AZ per cent govern
ment bonds, 1882 issue, were down
one franc so centimes, hitting u
francs, the lowest price at which
they ever have been quoted.
Fears for the franc in the wake
of yesterdays elections were re-
Sponsible for the drastic market
slump. The popular front" par.
ties gained almost throughout the
country, making probable Q coah'
ton of the moderate radical So
cialists, the Socialists and, for the
first time, the Communists.
Initiation Feared
Although outright deva1uation
is not feared Immediately the
rightiSt groups, controlling the
nations finances, fear the social
istic policies of the prospective
new lineup will lead in initiation
and other leftiSt reforms.
It was feared by Conservatives
that the program Of the victorious
Leftist parties would bring the
Bank of France more directly
under Government control, conSti-
tuting q danger to the franc
abroad,
Taking prompt action to fore
stall any sudden crisis in the franc,
the Bank Of France and the Brit
ish Exchange Equalization Fund,
it was believed. leaped into the
emergency with heavy purchases
Of francs against sterling and
dollars.
This was the only explanation
for the SteadineSS Of the franc,
which closed today at 1919 to the
dollar, unchanged from Saturday,
and IS to the pound sterling, a
raise for the franc Of two cen
times.
Franc In No Danger
It also was possible that the
American Exchange Fund was
operating, although there was no
official indication Of its activity.
Financial experts said the franc
is in no immediate danger, but
the present situation in the stock
market and a possible subsequent
drain on French gold reserves may
influence devaluation after the
new parliament conveneS in June.
It was significant, however, that
while the franc held firm, all gold
mining shares rose.
Runoff elections next Sunday
will be necessary, since only ITO
deputies were elected to- the 61S
seats of Chamber Of Deputies. A
majority was required.
Next week q simple plurality Will
win, and the popular front" was
expected to cooperate to fill the
remaining seats with radical So
cialists, Socialists and Commu-
niStS, the latter gaining about 40
seats, as compared with their 10
in the dying Chamber.
League Gains Support
Politically, the new Chamber
is expected to be much friendlier
to the League Of Nations and more
hostile to Italy'S cause in East
Africa than the outgoing group.
Frances stand against Germany
probably will be sitter, too.
The radical Socialists are in a
dilemma. Normally, on the second
vote, they would support Social
list If he were leading, but in the
coming runoff in many instances
the leading popular front candi-
dates will be Communists, whom
the radical Socialists will not wish
to support.
Ironically, however, Edouard
Herriot, prominent radical Social
ist, found in yesterdays election,
in which he was forced to resort
to the runoff that he will be
dependent upon Communist votes
for reelection.
Violence developed as a result
Of the election at Marseilles dur
ing q demonstration in which
shots were fired from a moving
automobile in the Boulevard Ma
tional. One person was killed and
one wounded.
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