Evening star., 1939-01-10
BY CONSTANTINE BROWN.

BroWn, The Stars commentator
on foreign affairs.
BY CONSTANTINE BROWN.
PARIS, France (By MaiD D.-Taker
between the social appeasement
policy Of the Socialists of Leon
Blum and the international ap-
peasement policy OF Edouard Dala-
dier, the French bourgeoisie-the
middle class-is in q bad way.
Between 1896 and 1887 the Front
Popular government passed hun
dreds of laws for the improvement
of the lot of the working classes
M. Blum and his followers took
whole pages from the American
New Deal program and proceeded
as fast as the 13 months Of govern
ment permitted them with vast p
w. A. programs, social assurances,
old-age pensions and other such
things which France, with more re-
duced means than the United
States, could not easily afford.
Money had to be found some
where Government loans were not
as easily absorbed as they are in
America. The rich were taxed
heavily. But the wealthy people,
the industrialists, the merchant
princes found way to beat the
government by causing the flight
from the franc; capital was exported
by the billions of francs to America,
Switzerland, Holland and Britain.
A financial crisis was the result of
this policy, a crisis which in the end
finished the French New Deal ad-
ministration.
Forced to Raise Funds.
The laws for social improvement
could not be repealed under the new
administration; it would have
caused trouble. The Daladier gov
ernment came to Office under the
best auspices. The francs came
home to roost. Nobody talked any
more about con1scatory policies.
But the Daladier government had
to find means to meet the tremen-
dous rearmament program caused
by the international situation. The
Blum administration had neglected
aviation. Costly machines had to
be purchased at once and paid for
in cash. Airplanes had to be or
dered abroad and paid for in foreign
currency. The value of the franc
was reduced from about Is to the
dollar in 1896 to about IS to the dol
lar in 1885, More than twice the
number of francs we're necessary for
the purchase of the same number
of dollars. A $4,000 bomber costs
the French taxpayer twice that
amount today.
The French people who until is
years ago had escaped the heavy
burden of taxation Of the other
countries have been taxed in the
last five years heavier than any
other people in Europe.
Complicated Methods.
The French treasury has perma-
nent officials who have a machia-
vellic gift of drawing money. They
use complicated and insiduous
methods. For instance: An indi-
vidual who has total income OF
$4,000 pays about % per cent tax.
But he may have part of that in
come in bonds or stock. When he
clips his coupon and cashes 1t, the
bank deducts between IS and go per
cent tax But when he files his in
come tax return, he must not de-
duct that tax but put into his sheet
the full amount he should have
gotten. He pays his income tax on
this entire amount. This Is one OF
the vagaries of the French treasury
There are many others.
No government dares plunge too
heavily into the pocket Of the tax
payers; that is to say, a direct
plunge. But every time the treasury
needs more money it increases taxes
on the things individuals use fire.
quently. Thus cigarettes-the sale
and manufacture of which consti-
tute a government monopoly-are
one of the best bets Of self-re-
specting minister of finance. When
ever he needs a few dozen million
francs more he just hoists the price
of the popular brands by so cen
times, or l franc for a package Of 20
Stamp Prices Boosted.
People still write letters in France
Only few weeks ago the govern
ment increased the price of the ord
mary stamp by Is centimes. II
sounds little in dollars and cents, but
it is a lot for the thrifty Frenchman
A French soldier doing his military
service draws pay of so centimes
a day (about a cent and half), but
he has some advantages, such as the
free franchise of his letters. M. Rey-
maud. the present minister o1
finance, made a quick addition ir
his mind: There are about SOC, ,00(