The Great Depression in France and its Effects

Next, we will examine the economic situation in France in the late 1910s and 1920s, specifically focusing on the Great Depression and the myriad of events that followed. This will provide important context if you are looking to answer questions about Vichy France or indeed the Third Republic.

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Economic Progress in the 1920s

• During the 1920s, despite political turmoil and frequent government changes, France experienced significant economic growth.
• Advances in electricity, metal industries, and chemical manufacturing propelled the economy forward, while sectors like textiles, leather, and food products also saw rapid progress.
• Modernisation efforts included adopting American-style mass production in the automotive industry, leading to a surge in car production, which increased from 135,000 units in 1920 to 1.8 million by 1939.

The Great Depression in France

• The Wall Street Crash of 1929 initially had a delayed impact on France due to protective tariffs and limited dependency on American loans.

  • However, once the effects hit in 1931, the Great Depression lasted longer in France compared to other countries.
  • French exports plummeted, leading to a significant balance of payments deficit as imports outpaced exports.

• The luxury goods market suffered, and the tourist industry saw fewer visitors. All societal segments were affected; farmers faced falling prices, workers contended with wage cuts and unemployment, and the middle and upper classes had a bleak economic outlook.

Government Policies

• The Third Republic struggled to address the economic crises, often resorting to traditional policies of reducing public spending, which included cutting civil servant salaries and veterans' pensions.
• They also increased protectionism and took over or gained partial ownership of key companies like Air France and the railways.
• Despite these measures, widespread dissatisfaction among the middle class, workers, and peasants made it difficult for the government to find effective solutions. Political pressure and social discontent led to frequent changes in government and growing criticism of the Third Republic.

Cartel des Gauches Again in Power

• The Cartel des Gauches, a coalition of left-wing parties, won the 1932 general election with 344 seats. Led by the Radicals, the coalition struggled to address economic and financial crises, exacerbated by internal divisions and policy disagreements.
• They aimed to cut public spending but faced severe opposition, both from within their ranks and from the rising right-wing leagues.
• These internal and external pressures, along with the looming threat of Hitler's rise in Germany, created a challenging environment for effective governance.

The Right-wing Leagues

• Several right-wing leagues emerged in the 1920s and 1930s, characterised by anti-parliament, anti-communist, and nationalist ideologies.
• Though some resembled Fascist groups, they were uniquely French in their approach. Notable groups included the Action Française, the Jeunesses Patriotes, and the Croix de Feu.
• These leagues, often involved in violent acts and public demonstrations, sought to destabilise the Third Republic. Their influence peaked during the Stavisky Affair, which they used to undermine confidence in the government.

The Stavisky Affair

• The Stavisky Affair erupted as the Great Depression worsened, revealing widespread corruption linked to Serge Stavisky, a financier with high-level connections. His fraudulent schemes, particularly the Bayonne Affair, triggered public outrage when he was found dead under suspicious circumstances.

  

• This scandal highlighted corruption within the government, leading to increased distrust and nightly riots in Paris in January 1934. Prime Minister Chautemps attempted a cover-up, further fueling public anger.

• The government's inability to resolve the economic crisis and corruption allegations intensified political instability.

Riots and Attempted Coup

• On February 6, 1934, a major street demonstration turned into a riot, leading to the resignation of Prime Minister Edouard Daladier.
• organised by the right-wing leagues, particularly Action Française and Croix de Feu, the riots resulted in several deaths and injuries.
• Although the left-wing responded with counter-demonstrations, the event exposed the fragility of the Third Republic.
• An investigative committee concluded that the February 6th riots were a revolt against parliamentary authority rather than an organised coup, highlighting the exaggerated fears of a Fascist takeover akin to those in Italy and Germany.
• Despite the lack of coordination among the right-wing groups, the riots reflected deep dissatisfaction with the Third Republic's failure to address economic, social, and political problems.