FRANCE: Worried

Jean Frenchman rushed to his favorite wine merchant, to his tobacconist, to his butcher, baker, candlestick maker. Hastily, he laid in a supply of articles about to become vastly more expensive. Then, clutching his remaining franc notes, he sought out the sellers of foreign bonds and securities.

The cause of this “buying panic”—which did not assume dangerous proportions—was twofold: 1) Finance Minister Loucheur had just presented the Chamber with the first draft of a new tax bill expected to raise eight billion additional francs per annum, by increasing the taxes on alcohol, business transactions and practically everything else; 2) The franc slipped down last week to 27 to the $1, a new low record for the year. The relative stability of numerous foreign currencies, prompted the harassed Jean to transfer his currency into pounds, gulden, Scandinavian kroner, U. S. dollars.

Since M. Loucheur’s bill is admittedly subject to extensive amendment, if indeed Premier Briand can railroad it through the Chamber at all, everyone turned for relief from the terrific squabble which is brewing over the measure to M. Marcel Cachin, fire-eating Communist Deputy, who created a loudly welcomed diversion by denouncing the nation which he feels to be responsible for most of France’s financial ills:

“The United States is now accomplishing the ambition of her financiers 50 years back—’We, the world’s granary, will become its workshop, but shall only be really victorious when we become its banker.’ The United States has become our banker. With the Dawes Plan she has enslaved Germany. We ourselves are marching with big strides toward financial dependency to American capital. . . . From the beginning of the War I watched closely the purchases France made in the United States. . . . With what suppressed anger did I not analyze those veritably usurious contracts which America, profiting by our distress, imposed upon us. … Does the United States really require the 75,000,000,000 francs they are asking us to pay? Every one knows they are almost suffocating beneath the weight of gold, as if paralyzed by their own immense fortune. . . . Our ally’s demands are absolutely incompatible with the situation of this country as well as with the most elementary morality. France paid with her blood. This thought must ever exercise full weight in the minds of all honest men!”

Observers opined that M. Cachin had coined into a few striking phrases exactly what is at the back of many a Frenchman’s mind. That these thoughts will not be allowed to come forward injudiciously was proved by the fact that a majority of the Paris press refused to print the speech at all.

With such sulphurous words safely expanding into ever thinner air, interest centred again directly upon M. Loucheur. When that notable millionaire-financial expert accepted the post of Finance Minister he declared ruefully. “I shall soon be the most unpopular man in France.” His prophecy has proved true.

Observers noted that discussion of the proposed tax measures showed a persistent tendency to wander into mere personal attacks upon its author. For example, M. Loucheur’s famed statement that during the War he gave all the “War profits” of his immense industrial holdings to the Government was openly questioned for the first time.

Finally MM. Briand and Loucheur held a long series of conferences as to the possibility of getting an eight billion franc per annum tax increase through the Chamber in any form whatever. Since the outstanding indebtednesses of France will continue to mature at a rate demanding approximately this amount of additional cash, the alternative to voting it would seem to be national bankruptcy.

None the less, critics opined that the resignation of M. Loucheur, if not of the whole Cabinet, may yet be forced by the unwillingness of the Deputies to face the situation, no matter by whom it may be presented. Rumor was busy with talk of a general election. Le Matin called upon “the leaders of the nation” to organize “a committee of public salvation” with the slogan, “Save France, or die in the attempt!”