RECOVERY EFFORT

Wairarapa Times-Age, 14 November 1938, Page 5

RECOVERY EFFORT

THIRTY=TWO DECREES ISSUED IN FRANCE

MEETING GRAVE SITUATION. SACRIFICES DEMANDED. By Telegraph—Press Association—Copyright. PARIS, November 13. After an all-day session of the Cabinet, President Lebrun signed 32 recovery decrees, all but two of which were immediately published. These include a revaluation of the Bank of France’s gold reserves on a basis of 170 francs to the pound. This does not affect the exchange, but yields a profit of £170,000,000. Taxation of company reserves, increased income tax, relentless pursuit of tax dodged, unification of metropolitan transport with higher fares, taxes on petrol, liquor and tobacco, increased telephone and postal rates, encouragement of industries, substitution of a five and a half for a five-day week, higher payment for employees, penalties for refusing to work on defence enterprises, imprisonment for propagandist and agitators, abolition of the national lottery on January 1, 1940, a stricter watch on foreigners, and closer guard on frontiers, general banking reforms, higher wages but reduced numbers of public servants, readjustment of pensions, and an agricultural subsidy of £57'0,000, are included in the decrees.

M. Reynaud, Finance Minister, in a broadcast, announced that the situation was grave but certain to be remedied. The ordinary budget deficit had been wiped out and the deficit on the railways largely reduced. France had been exhausting her capital and living on reserves.

As the result of eight years’ depression her production was one-fourth of Germany’s. Building was at a standstill and her shipping was now only in the eighth position in the world. Loans were needed everywhere. The laws of the capitalist regime must be obeyed. France could not break the agreement binding her to the British and American currencies and the exchange could not be controlled.

M. Reynaud added that the decrees initiated a three-year recovery plan, but that the sacrifices to realise £114,000,000 were only beginning. All must submit to them. If the State had not interfered the franc would probably have slumped to 500 to the pound. The plan aimed at an increased in production of 30 per cent. M. Daladier, the Premier, addressing ex-service men, appealed to all classes to make sacrifices. He added: “We thought that peace had been Avon, but only hard work can merit it.”