The times-news., 1937-03-19
FRENCH MONEY
TROUBLES Are
CRISIS CAUSE.
Blum's Foes Warn Nation
Financial Collapse
Is Threatened 8.
By M. S. HANDLER
limited Prcss Staff Correspondent

United Press Stair Sores'o"
PARIS, March 10. (UP.-With
French prices once again surpass-
ing world prices the Blum govern
ment has been obliged to call
temporary halt to its social re-
form program.
An extremely grave view Is
taken of the race between rising
prices and salaries. The govern
mcnt's opposition has taken the
stand that the initial impetus
given French economy by the sec
ond dcvaluation of the franc has
been neutralized by the uncon-
trollable rise in prices. They warn
a financial collapse is ahead un-
less something is done.
While the government is show
ing due concern for the porblem
il believes it can check rising
prices by severe repressive meas
ures that have been embodied in a
price control bill which parliament
will be asked to vote in the near
future.
PROFITS CALLED
PYRAMIDED
The acute nature of the prob
lem has led pro-government econ
omists to study and analyze vari-
Gus factors contributing to the un-
precedented increase in prices.
They have come to the conclusion
that the industralists and middle
men have pyramided excess prof
its At every stage of production
and sale. This added to certain
legitimate factors resulting from
wage increases, devaluation, and
the ensemble of social laws is
largely responsible for present
price trends.
One well known economist cal
culated that the legitimate price
increase is limited to 1872 per
cent whereas wholesale prices and
retail prices have increased ~
and 90 per cent respectively.
He pointed out that the unfav-
orable trade balance in January
totaled S52,000,000 compared to
lO5,5000.000 in business trans
actions. That he sal dis the first
element to. be considered in the
first, computation Of the legiti-
mate increase in prices.
Second element is that of the
social laws. Approximately $4.-
375, 100000 was paid in salaries
in 1895. The workers took $3,-
ATS. 900, 900, the remainder being
paid in salaries to company direc-
tors, statesmen, foremen, and Of
flee employees.
WORKERS PAY UP 40 :.
PER CENT .,. ,'.
Workers salaries were increas-
cd on average of 40 per cent,
which this year. should give them
an additional income Of more than
81, ,OOO,0O0.000. The income Of
the second group was increased
approximately 10 per cent, max
ing a total Of nearly, 81 ,500,000,-
600 that must be added to nation
al production costs.
The revalorization Of wheat
prices placed o burden of $780,
900, 900 on the cost of living. This
increase represents l.2 per cent
Of the total figure. -.
Using these basic elements, the
economist through. adding the
sums of the increase came to the
conclusion that price levels should
have only risen 1S.2 per cent,
whereas wholesale and. retail have
increased 80 and % per cent re-
spectively.
EXCESS PROFITS CITED
Analysing the rise in certain
commodities, the economist con-
cluded that speculation, desire for
excess profits, and the systematic
driving up of prices for political
reasons explain the present diff
cult situation of French economy.
Cotton has increased 65 per
cent since last June. The price in
England has been relatively stable