Stavisky affair

Stavisky affair, French financial scandal of 1933 that, by triggering right-wing agitation, resulted in a major crisis in the history of the Third Republic (1870–1940).

The scandal came to light in December 1933 when the bonds of a credit organization in Bayonne, founded by the financier Alexandre Stavisky, proved worthless. When Stavisky was found dead in January 1934, police officials said that he had committed suicide. Members of the French right believed, however, that Stavisky had been killed to prevent revelation of a scandal that would involve prominent people, including ministers and members of the legislature. Attempts by the government to hush up the affair encouraged popular belief in the essential corruption of the parliamentary regime. The flourishing antirepublican leagues, principally the fascistlike Action Française and the Croix de Feu, led popular demonstrations in hopes of overthrowing the regime. These agitations, which culminated in the riot of Feb. 6, 1934, in which 15 persons were killed outside the Chamber of Deputies, were sufficiently widespread to force the resignations of two successive prime ministers of the ruling left-wing coalition. But the establishment of a centre government of national union under former president Gaston Doumergue in February 1934 restored confidence and ended the threat to the republic.