Evening star., 1936-05-05
FRANC AID MAPPED
BY PARIS CABINET
Leftists Want Devaluation
Now-Many Leaders Hold
It advantageous.
nv the Associated Press.


PARIS, May 5.-Premier Albert
Sarraut's coalition cabinet assembled
tn nlan a defense for the franc today,
with the ministers reported In dis
agreement and perturbed by possl-
bility of devaluation.
= Informed sources said the Leftist
"people's 'front.'" which won ma
jority in the new Chamber OF Deputies
would face serious problems after the
chamber meets June l, and looked
upon depreciation of the franc now
rs a solution to many difficulties.
Although all parties opposed de-
valuation in the election campaign,
many political leaders conceded prl-
Vately that this action might be
necessary for Frances economic recov-
ery. One high official said the Leftists
would welcome" devaluation by the
Sarraut cabinet now. as the new gov
ernment would escape responsibility
for losses incurred by investors and
would receive the credit for anticipated
economic benefits.
Cabinet Split on Evidence.
Oficial sources reported the cabinet
was split over the question OF what
steps should be taken. Some min
listers held that action should be
limited to temporary expedients, not
prejudicing the policy of the new
government
Although Leon Blum. veteran Social
ist leader. announced his readiness
% head peoples front" government,
and Marcel Cachin, Communist
deputy. reiterated his party's will
ingness to cooperate, informed sources
said the new chamber might permit
Sarraut to remain in Office a few
months longer, with some cabinet
changes
Too sudden a change, these sources
said. might intimidate business and
provoke Rightist violence.
Bourse Prices Irregular.
Prices fluctuated on the bourse
again today, with the rather agi-
tated and irregular market showing
tendency to heaviness. Government
3 per cent bonds lost 70 centimes
within an hour. Stock of the Banque
de Paris lost % francs from yester-
days closing of 804.
Financial circles said that among
the measures under consideration by
the cabinet was control of foreign
exchange operations and strict watch
over trading in futures to block
spectators.
Friends of Leon Blum, leader of the
Socialist party, said he, Maurice
Thorez, secretary general of the Com
. munist party, and former Premier
Edouard Daladier. leader of the Radi-
cal-Socialists. had agreed on an anti
devaluation policy for the new gov
eminent.
Program Is Outlined.
The following program was sug-
gested by friends of Blum:
|. Virtual nationalist ton of the
Bank of France, either through more
strict control of the bank itself or
through the voting power of the
shareholders.
3 The abolition of former Premier
Laval's decree laws reducing pensions
and functionaries' salaries.
g. Measures controlling speculation
and newspapers to prevent the spread
ing of panic.
4. Naturalization of war industries.
5. Complete overhauling of the tax
system and military appropriations in
the next budget without, however,
reducing armaments appropriations.
6. The dissolution of the supposedly
EARNED semi-military leagues, but per-
mission for the Croix de Feu. the vet
Grams organization, to reorganize as
a political party if it wishes.
7. The abandonment of sanctions
against Italy.
8. 1nsiStence on mutual assistance
or disarmament in negotiations with
Germany.