The Wilmington morning star., 1947-08-01
The State Of France
BY CHARLES r. HARGRovE

PARIs-An epidemic of strikes affecting
railroads. coal mines, banks, engineering and
other big industries, and threatening to en-
brace all ranks of the civil service, has re-
Gently served to prove beyond doubt that
France has not yet gotten out o. the wage
price spiral in which she has been turning
since the Germans quit her soil.
Government and employers have been OBJ
Nged to yield to the pressure, and though
the increase of rates OF pay has usua''Js
been disguised under the name OF "preml-
UNI. on production it goes without saying
that ere long the whole level Of wages will
have been raised by 10 per cent at least
and probably more.
It also goes without saying that the level
of prices will inevitably rise as conse-
ouence both of the rise Of wages and the
Simultaneous steps being taken by the gov
eminent to decrease the gap between ma
tional expenditure and revenue
The price o. bread is to be doubled in
order to relieve the Treasury OF subsidy
running at the rate Of $500 million annually;
almost as much is to be saved on the ma
t1onal railroads by raising rates and reor-
oarizstion: the tobacco monopoly has already
raised it's prices: the tax on gasoline Cal
dy far higher than in any other country
has teen jumped up. Government already
admits that manufa cturers in many fields
must be allowed to charge more for their
goods in order to cover higher costs OF pro-
duction.
Government has also fixed the price of
this years wheat at almost double tnat PAID
last year. to compensate farmers for the
roor crop The capital tax is being increased
bv Is per cent and dates of income-tax col
lection instalments are being advanced.
III these things clearly mean that by the
end of the year everybody will be taking
more francs for his goods or services and
find;l it just as difficult as, it not more
difficult than ever to make ends meet if at
least he tries to win his living honestly.
It was barely six months ago that Leon
Blum, then Premier. launched his campaign
TO bring down prices and so escape raising
wages. Some people believed him and the
rest tried to make themselves believe him.
yer, body had hope that anyhow if prices
would not come down. they would not go up.
Monsieur Blum has recently confessed his
campaign failure. The indces prove it, for
starting from 100 pre-war and standing at
$40 on January !, wholesale prices month
ago registered 9O4 while retail prices in Paris
in the first half-year from 865 to 935.
And the indces tell only half the tales for
thew ignore black market prices. Any house
keerer knows that prices are on the move
again in the wrong direction.
There is naturally feeling Of keen dis
illusion. Even those who are getting more
pay are Ear from rejoicing. By this time the
labc rer in the field factory is we'll aware
that wages can never keep pace with prices
so long as government keeps the printing
presses working overtime A year ago lhe
note circulation was 632 billion francs; the
other day it was 733 billion. The government
H. @o
on its borrowing powers from the national
bank and despite extra taxation and new
economies. is obliged to admit that the cur
rent years income from all sources-taxes,
cublio loans. sale of goods bought with bor-
rove1 dollars and American war stocks
will fall short o. income by almost 100 billion
francs and that is after postponing payments
due 20 contractors to the tune OF 80 billions by
the device OF issuing to them discountable
bills
To add to the gloom there is shortage
Of foreign exchange mainly dollars. so acute
that government has drawn further on the
Bank o. Frances slender stock OF gold. In
two years it has shrunk from over 1,5O0 tons
70 less than 5OO 1t will shrink still more. even
though government is engaged IN Hquldauns
all .he resources in cash and securities which
it has been able to identify as belonging to
French citizens.
In these circumstances it might have been
expe cted that another financial crisis develop
ing ;rto another political crisis would arise,
and another attempt at coalition government
emb, acing Communists Socialists and Popu-
lar Republicans would follow. That was what
the Communists. excluded from the cabinet
three months ago, hoped for But there has
been neither financial nor political crisis, and
the me ministers are in office as in early
May They will survive the expiring session
Of the National Assembly, and may look for
ward to facing it upon its reassembling in
late autumn.
However you try to explain why there has
been no crisis, you must start by noting
that the atmosphere has been adverse. What
eve4 interest politicians may continue to
maj, tain in the old game of politics, that
game begins to bore the public. The public
is weary of talking and reading ABOUT
wages and prices, deficits and devaluatlons.
Even when it seems as if the entire admins
trative machinery would become paralyzed
by a civil servants strike. there was no
grea tensity in the air Of Paris.
Government committed to cooperation with
Washington in defiance of Moscow is now
seen so clearly to reflect the inclination OF
the oulk of the nation as to find no reaction
other than verbal one from the Communist
party. The Frenchman, in short, percelves
Tn which side his bread is buttered His
common sense is reasserting 1tseE MN.
Ramadier and schuman, with Secretary of
State Marshall behind them, are team
whicA can even preach austerity effectively
Communism indeed runs the risk Of losing
the second game in the rubber If 1t tries too
actively to obstruct the efforts at reconstruc
ton ty moderstes on moderate lines packed
by dollars. But the dollars must be -orth
coming-Wall Street journal.