19 JULY 1935, Page 1

M. Laval's Economies M. Laval has tackled the economy question

heroically, but his courage may spell his downfall. Expenditure is to be reduced by no less than 11,000,000,000 francs-- 1146,000,000—as result of cuts ranging from 10 per cent. downwards in the pensions of ex-servicemen, civil servants and railway. workers, a reduction, in the interest of French rentes and other securities, together with in- creased taxation on large incomes, and a special levy on armament firms' profits. This is to be offset in some measure by compulsory reductions in the price of bread, gas, electricity and other commodities. It is not surprising • that a sitting of 14 hours was needed before the Cabinet could bring itself to consent to laying hands on institutions so sacred as ex-servicemen's pensions and the rentes. The Prime Minister is acting, of course, under general authority conferred on him by the Chamber, which is not in session. If it were it would probably have refused its sanction • to . some of the cuts, and the fact that it is not means that the only means of protest available is by public demonstrations. The dangers of that are manifest, though the critical July 14th passed off safely, with the Right and Left celebrating at opposite ends of the city. Once again Europe is faced with the peril of an internal crisis in France synchronizing with an international crisis and paralysing Frenc Ii action abroad just when it is most needed.