Evening star., 1938-01-14
Chautemps Refuses Bid to
Replace Fallen Cabinet.
Blum Is Called In.
GENERAL STRIKE
IS VOTED AT LILLE
All Foreign Exchange Dealing
Suspended in Fiscal Crisis.
Coalition Parties Split.
BACKGROUND

mas been goDerned by the Peoples
'FRONT.', q coalition of the more lib.
erdl party elements. The cabinet of
Leon Blum remained in pouer for
year; his successor, Camille
Chdutemps, for seuen months.
Like Blum, pho lost pouer In an
attempt to get decree control to
hdndte Frances financial crisis.
Chdutemps has had many of his
battles oDer the r,~ob1en1 of n ,r1.
vertng franc and badly unbalanced
budget.
The method OF handling recur-
rent strikes has been another thorn
IN the side OF the administration.
By the Associa ted Press
PARIS, Jan. 14-France's wave of
strikes spread today as President AL
bert Lebrun sought a new premier to
grapple with the grave social and
monetary problems which forced the
resignation Of Camille Chautemps and
his Peoples Front government.
Chautemps, having declined the
Presidents first invitation to form a
new cabinet. the President summoned
Leon Blum, Socialist leader and for
mer premier, to the Elysee Palace.
Whether Blum was offered the
premiership or merely called for con-
sultation was not Immediately dis
closed.
Edouard Daladier, minister Of ma
| tlonal defense, leaving the Presidents
palace after a two-hour conference,
said he had declined Lebruns invi-
| tation to form a cabinet.
The importance of the task I must
| accomplish at the war ministry did
not permit me to accept the offer of
the chief of state" said Daladier.
The President worked against time
in an effort to establish a new gov
ernment before political passions ag-
gravated the labor strife and the de-
cline of the franc, which precipitated
the crisis.
General Strike Voted at Lille.
While he was consulting party lead
ers. street car and bus employees Of
| Lille voted general strike to protest
against the discharge of 90 workers
and insufficient wage increases. They
empowered their leaders to fix the time
Of the strike.
Metal workers at Lille already had
voted to demand higher wages Other
strikes or labor disputes we're in prog
| ress in Paris suburbs, Mines, Valen-
ciennes and the Metz region.
To cope with the fall of the franc
which yesterday reached 1920 to the
| dollar in unofficial sales-the Bank
of France ordered all dealings in for
eign currencies suspended until fur
nance Minister Georges Bonnet, who.
like the other ministers, remained in
Office pending formation of the new
cabinet. permitted the Bourse. or
Stock Exchange. to open las usual"
Chautemps resigned early today
after a bitter verbal exchange with
his Communist allies in the Chamber
of Deputies and after Socialist men,
bers Of his cabinet had withdrawn.
His own Radical-Socialist party. the
Socialists and Communists together
formed his Peoples Front support.
Breach May Be Healed.
Signs the breach in the Peoples
Front might be healed developed to-
day. The Executive Committee of the
Communist party published a state
ment calling on Communists, Social
lists and Radical-Socialists to reunite
and create new Peoples Front gov
ernment The statement said, This
now is more than ever necessary"
But Chautemps, explaining his re-
fusal Of Lebrun's invitation to head q
new cabinet, said:
Il feel the incidents of last night
are too recent and would seriously
hamper my task"
The ban on foreign exchange deal
ings prevented even tourists from
changing money.
Lebrun sought government that
could solve Frances problems Of
fluctuating currency. a prospective
budget deficit fixed by some at ST.
350,000,0o0 and spreading strikes by
workmen protesting increased living
costs.
Presumably the Communists criti-
cism referred to Chautemps' appeal in
the Chamber of Deputies for workers
to honor their contracts. The appeal
was made in his effort to win an in
dustrial truce.
Differences on Strikes.
Chautemps had endeavored to win
labor and employers to a code Of in
dustrial peace, which would bar sit-in
strikes and provide for discharge Of
workers only with union approval.
Differences over handling strikes
throughout the nation and dealings
with Frances financial problems were
the basic issues which forced out
Chautemps and shattered the coali-
ton of Socialists, Radical Socialists
and Communists which had given him
support.
His resignation was precipitated
suddenly by three elements:
/. A desire by his more Leftist ad-
herents for foreign exchange control,
to bolster the franc weakened by the
renewed labor tension.
2. Communists indications that
they would not participate in q
parliamentary vote Of confidence for
the Chautemps government, and the
Premier's reply vote as you please" !"
8. Withdrawal of Socialist ministers
in the cabinet, eliminating nine Of
81 Of the ministers and five Of II
undersecretaries.
Strike movements broke In scattered
sections protesting increasing living
costs.