Evening star., 1938-04-04
DICTATOR POWER
SOUGHT BY BLUM
Premier Before Finance
Group of Chamber With
Appeal.
y tie Associated Press.

PARIS. April 4.-Premier Leon
Blum went before the Finance Com
mittee of the Chamber of Deputies to-
day to plead for powers to impose
what financial quarters likened to
totalitarian discipline over French
finance and industry.
He asked. with the cabinets formal
approval. for powers to effect by de-
cree sweeping changes, including what
financial experts said was tantamount
to foreign exchange control and de-
valuation of the franc.
But while the Socialist Premier ar
gued that the danger of war had risen
to point demanding rigorous sac
rifices indications arose he might not
be able to get his program approved
even by the Chamber OF Deputies
Radical Socialists Shy.
Rumblings of dissatisfaction came
from the Radical-Socialists important
element in the Peoples Front coalition
supporting his cabinet.
Stubborn opposition Of the Con-
servative Senate was considered Ger
tain.
The cabinet. first in ordinary ses-
sion. then as the council Of ministers
with President Albert Lebrun presid-
ing. had given approval to M. Blum's
program.
Rejecting widespread feeling that
the Socialist premier's program would
lead to his downfall the franc
strengthened in official dealings on the
bourse. It closed at 1924 to the doll
lar. as compared with Fridays official
closing Of 32.7l.
Principal Proposals.
Most important Of the proposals
were:
Capitalization of all dealings in for
eign exchange in the Bank Of France
with a requirement that documentary
evidence must be produced of the
necessity for any purchase or sale Of
foreign currencies before authorization
is given; financial experts said this
would be virtual exchange control,
thing successive Peoples Front gov
ernments thus far have avoided.
Retaliation of the gold stock of the
Bank Of France at its actual value"
which experts said could open the
way to new devaluation of the franc.
An extraordinary tax" on capital
holdings. such as bank accounts, stocks
and bonds.
A two-year moratorium on public
debt payments; this was considered
one Of the boldest measures proposed.
Quick Fall Seen for Blum.
Financial circles said the strength
ening Of the franc showed belief the
Socialist Premier soon would fall, and
his government would be replaced by
q public safety" cabinet with wide
support in Parliament.
The Blum proposals were listed In
detail by an official summary, but the
Premier announced he would ask Par
lament to vote one brief bill giving
the government powers until July /.
1888. to take the measures it Judges
indispensable" by decree to follow the
broad program approved by the cabi-
net.
The DEGREES would have to be sub
mitted to Parliament for ratification
not later than December 81, 1898.
Silent on Money Accord.
Onncial spokesmen declined to COM
nlent on possible effects of the foreign
exchange proposal on the three-power
monetary accord France made with
the United States and Britain October
IL, 1886.
The official announcement made no
reference to exchange control as such,
but financial experts said that Ger
tainly would be the effect of the pro-
posal, expressed In the Official summary
as:
"Centralization of exchange OPERA
tions by the Bank of France for pur-
poses of surveillance, involving re-
quirements of proofs substantiating
commercial needs"