France's Finances There is not much to be said in
favour of M. Daladier's first instalment of financial decrees issued under the Special Powers Act ; but at least they put an end to the "supple- mentary budgets" which for years have helped to disguise the volume of France's annual deficits. The additional deficit is to be covered by the crude and inequitable method of imposing an increase of 8 per cent. in all existing taxation, direct and indirect, calculated to bring in L25,000,000. But, even more than on increased taxation, M. Daladier is depend- ing on a return of confidence, increase in production, and, to some extent, a revival in tourist traffic, and for this purpose has granted significant tax rebates. By such an approach to the problem, he has debarred himself from preventing the tax-evasion, and adjusting the disparity between direct and indirect taxation, which cut at the root of France's financial difficulties. For France can hardly expect to discharge her liabilities successfully so long as capital continues so conspicuously to evade its proper share of taxation. The financial decrees are accompanied by a decree regulating the right to strike, which henceforward can only legally be exercised after a secret ballot of the workers concerned, a measure certain to be unpopular with the working class. There is to be some further devaluation of the franc, but it is a strength to M. Daladier to be able to assure his country that on that he is acting in concert with London and Washington. * *
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