For the third time since Socialist Léon Blum formed his Popular Front Government (TIME, June 15, 1936), scared money was in flight from France last week, rushing to other havens at such alarming pace that the Bank of France, striving to tempt its return, had to jack up the already high Paris central bank discount rate of 4% to the "panic rate" of 6%. The Blum Cabinet for the third time in nine months was desperately short of cash. First time this happened (TIME, Oct. 5), Finance Minister Vincent Auriol devalued the franc by 40%, carried on with the "profits" of this operation. Next time the Treasury cupboard was bare M. Auriol borrowed eight billion francs (TIME, March 22). Last week government economists figured that another 20 billion francs will have to be found by the Treasury this year. It was believed in Paris that the Cabinet's exchange equalization fund had been almost exhausted, and only friendly support from Washington and London kept the franc from slipping. After almost a year of Popular Front rule the Blum Cabinet found itself still unable to agree what basically should be done when it met one morning last week in emergency session at the Palace of the President of the Republic.
The last French election gave the Popular Front a "safe majority" in the Chamber composed of Radical Socialists, Socialists and Communists. These last have no Cabinet seats. At the emergency session it was the Radical Socialists and Socialists who fell to quarreling, with luckless Premier Blum fluttering between them in his accustomed role as the dove of Popular Front peace. After almost two hours' wrangle it was decided to ask Parliament to grant the Cabinet dictatorial powers over French economy and finance for six weeks. Once these had been voted, the Cabinet could then in a more tranquil atmosphere decide what should be done, and do it by decree.
That afternoon Premier Blum and Finance Minister Auriol went at 3:30 p. m. to ask the Chamber of Deputies for "full powers." Frenchmen have long memories and everyone recalled how, when Premier Aristide Briand made a similar request in 1926, it was Deputy Léon Blum who cried: "Rather than grant such powers, I would prefer that this country had a king!" No less than six French Premiers who have asked for "full powers" were fought on this issue by MM. Blum & Auriol. In 1934 they accused that mild political tabby Premier Gaston ''Papa" Doumergue, who died last week (see p. 28), of asking for full powers ''as the opening wedge to Fascist Dictatorship!" Last week when Orator Blum asked exactly these powers for his Government he cried: "We are backed by the masses of this country. . . . Too often have we seen the policies demanded by the people overthrown by shady maneuvers! . . . My Government not only has the support of the people but the enthusiasm of the people."
It did not have the enthusiasm of the Communist Deputies. Their 72 votes are indispensable to the Blum Cabinet, and instructions had come from Moscow last week to make the Premier acutely conscious of this fact. Therefore Communist Deputies who usually cheer Blum & Auriol sat stone-faced last week through their appeals to a Chamber in which only the Socialists cheered.