M. Reynaud's Plan M. Reynaud's financial decrees, designed to restore
France to stability, have now been published. They contain nothing unexpected, and by some are thought not drastic enough for the situation. They have been well received by the Bourse ; but unfortunately the sacrifices demanded bear much more heavily on the workers than on other classes, and the opposition, even if restrained, of the Socialists and trade unions is assured. The 4o-hour week is abolished ; a special levy of two per cent. on income applies even to the lowest grades of wage earners ; public expenditure, public works, and the numbers of State employees, including railway workers, are reduced severely ; indirect taxation is increased. On the other hand, direct taxation is slightly increased ; but M. Reynaud's chief aim has been to increase production by increasing opportunities for profit-making. Revaluation of the Bank of France's gold will be used to repay Government borrowing, and the Government intends to keep out of the loan market for six months so that interest rates may fall. The first batch of decrees has been followed by a second, but the omission of the promised decree establishing a pensions fund for retired workers (which is reserved for s ibmission to the Chamber when it meets) has increased working-class bi:terness. M. Daladier indeed becomes increasingly less concerned to spare the suscepti- bilities of the workers, and may thus prevent any possibility of creating the period of political calm which is essential for the success of M. Reynaud's plan, described in one paper as the last chance of saving the French bourgeoisie from totalitarian- ism.
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