The French Finances.

Press, Volume L, Issue 14975, 23 May 1914, Page 10

The French Finances.

Englishmen who feol nervous about the growth of national expenditure should study Franco's finances, and sco how much they have to bo thankful for. The great difference between the finances of the two countries is that whilo England pays her way out of revonuo, France has, year after year, to float loans. Moreover, it is the aim of British Governments to reduce the National Debt whenever possible, and as a resuifc of tho Liberal Government's efforts, the nation is now.paying £3,000,000 less in interest than it did "when the Liberals took office. Iv France, the debt mounts year by year, and in 1912 it stood at 1302 millions, or nearly twice' the amount" of the English debt. Tho other day thero was a v cable message stating, on tho authority of the Reporter on tho Budget, that Franco must raise an additional 24 millions sterling within two months, or face bankruptcy, and yesterday it was stated that tho Treasury was "about empty." Tho main cause of this need of much mouey is tho defence proposaJs adopted last year, especially the extension of the army service to threo years. According. to French custom, tho question of ways and means was not settled when tho proposals woro carried. Tho "Economist" estimated last year that tho expenditure in 1914 would be £io,ooofiGo inoro than in 1913. a hugo increase when , we remomber that tho difforonce between tho British expendituro last year and the current* year is only ten millions. To cover these enormous requirements tho Minister of Financo proposed fresh taxation, but it was not supposed that this would bring in ouough money. Tho conviction has been ; that there must be raoro borrowing, and ostimates of tho amount required! have beeu as high as £100,000,000. Naturally* peoplo have been asking whether Franco can stand tho strain of such finance without serious injury to her economic condition and her international position. There is moro fluid money in the country than in any other, and in consequenco Franco has not only been aldo to supply her own State requirements easily, but has become the banker for Europe. Every public loan has "been over-subscribed; as much as twenty millions has been offered over the counter at the banks during ono morning. But there must be a bottom even to tho French stocking, and tho question is whether French thrift can continue to supply tho requirements of both its own Government and foreign States. Formidable as the French Army is, it probably does less to keep the peace- in Europe, than French money. Certain countries are so dependent on tho French money market for loans, that they are very loath to fall out with France, and the French Government makes full uso of this dependence in its foreign policy.