Monday, Jul. 29, 1935
Laval Dictates
Much as freedom-loving Frenchmen hate and fear a Dictator, their Chamber and Senate recently vested swarthy Premier Pierre Laval with dictatorial fiscal powers (TIME, June 17). So long as Parliament remained in session, canny M. Laval lay low, was criticized for not using his powers. With Deputies and Senators now on vacation, the Premier last week asked his coalition Cabinet to meet him in the historic Clock Room of the French Foreign Office one day at 9:30 a. m. Figuratively M. Laval then locked the door. Except for lunch and dinner, superbly provided by the famed chef of the Quai d'Orsay, for over 14 hours there was nothing but work in the Salle d'Horloge with its massive, slowly ticking clock. At ten minutes before midnight the weary Cabinet rose, having drafted no less than 28 emergency decrees.
Much as Benito Mussolini goes to King Vittorio Emanuele III to get his decrees perfunctorily signed, Pierre Laval & Cabinet then called at the ornate Elysee Palace of sad-eyed President Albert Lebrun. It took M. le President until 2:30 a. m. to sign the 28 decrees. They were emphatically in the Mussolini spirit, diametrically opposed to the Roosevelt.
Both sturdy sons of thrifty peasant sires, M. Laval and Mussolini find themselves opposed in blood and bone to the methods of one born with the gold spoon of Hyde Park in his mouth. Their purposes are to keep their monies firm on gold and to make cheaper the necessities of life. In Italy these many years, Il Duce has been hoeing this hard row, and last week Premier Laval joined him. Of the 28 new French emergency decrees, eight seek to make necessities of life easier to buy, and the other 20 effect economies and new taxes designed to balance the French budget.
"Equality of Sacrifice." To the radio rushed Pierre Laval and explained as follows: "By the decision of Parliament we, the Government, are charged with defending the national patrimony. There are Frenchmen who talk of 'devaluation,' of 'reflation' and of 'revalorization.' They forget that France already has lost four-fifths of the value of its currency. Other Governments may prefer to print false money. This Government will have none of that!
"Today the salvation of the franc demands sacrifices from every Frenchman. The State debt has grown from 260 milliards [billions] to 340 milliards of francs [$22,555,000,000]. To balance our budget requires equality of sacrifice from rich & poor, high & low. My Government stands for such equality of sacrifice, for solid currency and for domestic peace!"
Soaking the Nation. Specifically the 28 emergency decrees signed by President Lebrun as immediately effective provide: P:Reduction of pensions of war veterans (except those heavily disabled) by 100%. P: Reduction of the State-controlled price of bread by about 1/5-c-a Ib. P:Reduction of gas and electricity rates by 5%. P:Reduction of State Railway employes' pay by 10%. Other State employes receive cuts of 10% for those receiving over 10,000 francs ($660) yearly; 5% for those between 10,000 and 8,000 ($528) francs; and 3% for those between 8,000 and 5,000 francs ($330).
P: Reduction of all dwelling rents under 10,000 francs by 10%. P: Reduction of interest on State obligations by 10%. Corresponding reductions in interest payments on mortgaged dwellings.
P:Upping of the tax on profits of munitions and war industries to 25%. P:Super-taxing all incomes of more than 80,000 francs ($5,308) per year 50%, thus mightily "soaking the rich"' in France.
Other aspects of the 28 decrees were so broad that they could fairly be said to impose heavy sacrifices on every man, woman and child in France. In thus soaking not only the rich but the entire nation Premier Laval displayed supreme courage. Taking his political life in his hands, gambling on approval for his drastic measures when the Chamber and Senate meet again next autumn, the Premier prepared meanwhile to suppress by force and due process of law all opposition to his decrees by disgruntled French elements, such as the war veterans and railway employes, both highly organized and mightily vocal.
Out to every provincial governor and chief of police in France, the Government wired strict orders to suppress gatherings or demonstrations in the open air against "equality of sacrifice," permitted citizens of France to meet indoors and air their views without breach of the peace. Riots, none grave, soon followed in Paris and police clapped into jail about 1,000 assorted war veterans, railway workers and proletarians.
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