The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, APRIL 11th, 1925. FRENCH FINANCE.

Hokitika Guardian, 11 April 1925, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, APRIL 11th, 1925. FRENCH FINANCE.

Politics in France appear always rather contusing to the onlooker when is, the groups are at’ variance. As tire Christchurch “Press ’ remarks, it is seldom easy to say of a crisis in .Franco that it is that thing, and that thing \. only, which it appears to lie. As there is nothing in New Zealand, or fn;t deed in the English-speaking world, corresponding to the Continental svss tern til government by groups, and nothing even approximately like the personal political control of flic Press, it id is almost impossible not to misread political news when a party situation develops. Rut it seems safe enough to sav of M. Herriot’s troubles that tncy begin, if they do not end, in a “renewed sagging of the exchange.” Proof that they do not end there has already been provided in the terms on which n tile new Finance Minister has accepted office; but if the Premier falls between u the clericals and anti-cleriea'is that will be an accident of the present crisis l! rather than a part of it. If he could “|>eg the franc’’ he could safely ignore both these parties, but he lias very ' little hope if his financial measures fail. And it of course makes no difference s that tile country’s financial difficulties are not of his making. It is possibly ~ the ease that he has done as well with I*is terrible heritage as a compromise leader could do, and it is certainly a , fact that lie lias done a great deal for r ~ the franc by his pacific foreign policy.* But the heritage remains, and- what makes the Government’s situation so difficult is the fact that it has inherited a national toleration of debt as well ( as the debts themselves. The irreverent Paris correspondent of “Truth” wrote recently that “France is very angry with Britain for dragging her !• by her beautiful hair through all this nasty financial mire’’; but of course Britain has done nothing of the sort. Britain did sav, when America sudden- - )y asked Paris to pay that she hoped that she would not lie forgotten, but her attitude in general has been more patient than history can parallel, and far more long-suffering than has been good for the French people themselves. France is still a. rich country in spite of her appalling war losses, and although no Government can wish, or afford, to push her at this, particular stage, it is a fact that it would have keen profitable for her to have been pushed two years ago. The new decline in the franc is attributed by some to a hardening in tho attitude of America, which is becoming sceptical of France’s intention to pay her debts, but although that may cause a temporary disturbance the root evil is the discrepancy between expenditure and assured revenue. Opinions differ as to the amount by which the real as well as the nominal burden of taxation in Britain exceeds that of France; | but no one believes that the French ; people pay ns much, or nearly as much, j into the Treasury as the British public j pay, and if their rulers are not prepared to make them pay more they should at least lx? prepared to curb J expenditure. The limit of a country’s '• taxable capacity is not any fixed amount 1 or even, if it could be estimated 1 any fixed percentage of its revenue or resources. The problem is so largely psychological that what would lie a dangerous point in one country might be passed with perfect safety in another. But neither temperament nor habit can justify keeping down taxatic.n and keeping up expenditure simul- 2 taneousiv. and that is what France has keen doing ever since the war. It is agreed bv all competent observers _ that the restoration of her finances is well within her present economic capacity, and the Government will not , deserve to lie saved if it baulks at the real remedy.