FRENCH CRISIS.

Manawatu Standard, Volume LVIII, Issue 43, 19 January 1938, Page 8

FRENCH CRISIS.

Crises have been so frequent in France, and so many of them have been rather severe, that another one makes very little difference to Europe. That France has been able to stand up to these recurring shocks is proof positive of the strength of her economic structure. "With each crisis comes a change of Government, and it must be a source of wonder, to foreign observers, how, with these frequent changes of Ministers, there can be any continuity of policy. Only on. two salient points is the French nation agreed: One is close friendship with the United Kingdom, and the other is a defensive pact with Itussia. These policies are, of course, designed for the safety of the nation, for France distrusts Germany, and in no way puts any faith in Herr Hitler’s peace talk. The latest crisis in France appears to be largely due to industrial strikes, causing investors to lose confidence m the situation, hence the heavy withdrawal of funds from the Bank of France, hoarding by the timid capitalists, and depressing the franc on the foreign exchange market, necessitating the active support of the Exchange Equalisation Fund. The financial aspect of the crisis need not cause much worry, for Britain and the United States are pledged to support the dollar, the franc and sterling in the event of attack. The latest quotations show thal 149 francs equal £1 sterling, while a day or two ago the price was 147 francs. These violenl fluctuations are detrimental to trade, and it is well known that French trade is suitering rathei badly. The industrial unrest is perhaps the greater menace. France has not been without a strike for some time, and it is difficult T o know what the workers want. The last big strike avas settled by the then Prime Minister, and the leaders of the strikers claimed a victory for the workers. It was anticipated then that the easy victory would lead to fresh strikes. M. Flandin, an exPrime Minister, in a recent article forecast a troublesome time for France this year, with an increase of unemployment and a disquieting decline in trade. Strikes and politics appear to be linked in France, because there are too many parties in the State, and since there is no provision for a dissolution of Parliament the parties play political football with the Governments. French strikers and French politicians are running great risks, for a disrupted France would create a great weakness. But France will overcome all her difficulties, for they are mostly on the surface.