Rough-shod Riding

Premier Poincare tightened the tough girth of his new "Sacred Union Cabinet" (TIME, August 2) on the Chamber last week and spurred that fractious mettlesome assembly over more high hurdles of distasteful legislation than it has taken in a twelvemonth.

Having gotten through eleven billion francs of new taxation by a Chamber vote of 324 to 110 (TIME, August 9) which the Senate confirmed last week, 250 to 13, M. Poincare seized his opportunity to ride roughshod, informed the Deputies that they must now pass without amendments two more heroic measures of fiscal reform:

Sinking Fund. By a docile vote of 420 to 140, the Chamber authorized the creation of an autonomous sinking fund out of which the National Defense bonds and short term Treasury issues will be amortized. The fund is to be fed by the additional inheritance taxes just voted, by a budgetary allowance and from the profits of the enormous state tobacco monopoly. A non-partisan committee of 20 experts will administer the sinking fund, with the object of restoring confidence in the Government's willingness and ability to meet its obligations without hindrance from the Chamber.

The Senate immediately rushed through the Sinking Fund Bill 281 to 6, exactly as passed by the Chamber.

Since the enacted extraparliamentary administration of the fund by an impartial committee was deemed unconstitutional last week, Premier Poincare arranged with President Doumergue for the immediate convocation of the National Assembly (Chamber and Senate sitting together) at Versailles, to amend the Constitution.

Bank Fund. The final fiscal reform measure for which M. Poincare secured passage last week authorized the Bank of France to create by the purchase of foreign currencies a non-fluctuating monetary reserve for manipulation in defense of the franc. Premier Poincare declared roundly before the Senate: "The franc has reached a point where it is much below its real value. The Bank of France bills are guaranteed in such a manner as to render unjustified the absurd present rate of the franc in international exchange."

Straightway the Senate ratified the Bank Fund Bill 271 to 11.

Significance. Correspondents at Paris wrote last week in an incredulous vein, as though unable to believe that the Chamber, after two years of procrastination and folly, had been galvanized into rational action. So favorable was the reaction of international financiers that the franc touched 35 to the dollar again, after touching 50 during the slump which frightened the Chamber into supporting the "Sacred Union Cabinet." (TiME, Aug. 2.) Throughout the week, M. Poincare conducted an experimental and educative campaign of inspired statements to the press--sought, without conspicuous success, to find and pave a way through hostile public opinion toward ratification of the Franco-British and Franco-U. S. debt pacts.