The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY MARCH 20, 1926. ECONOMIC POSITION OF FRANCE.

Hokitika Guardian, 20 March 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY MARCH 20, 1926. ECONOMIC POSITION OF FRANCE.

In his latest report revised to July, 1925, Mr ,1. It. Cahill, Commercial Counsellor to H.M. Foil.-assy. Paris, infers to tin? general eeonomie position of Era nee and states that, oil its static; side, the country has considerably reinforced its permanient capacity as n producer of important raw materials for industry, including coal and hydraulic energy; that it is improving definitely its capacity as an agricultural producer; and is freeing itsell in rapidly increasing measure from undue dependence on foreign countries for many raw materials, such as coal and coke, hy ineneased production of both, as well as of electric energy. Further, the country is acquiring it wider and more penetrating hold upon its home markets for a large number of manufactured products; and by virtue of its improved equipment of its larger-scale production, of the developed practice of combination or consolidation in 'several of its great industries, of its acquisition of knowledge of numerous manufacturing processes, of its enhanced comprehension and realisation of motive foreign trade methods, it possesses now greater industrial capacity, skill and competitive. power as regards foreign trade. Already the principal world’s purveyor of fine quality and so-called luxury goods, which hy their constantly changing designs, fancifulness, taste; quality. or finish of execution, have attracted the wealthy or more fastidious and discriminating classes in most lands; and which still constitute the greater part of thi? value of its exports. France is now developing with no mean rapidity in many trades large scale and standardized production ot the ordinary goods of general consumption and is approaching more closely than at any previous period to the level of the three principal industrial and exporting nations. The country is still far behind them in tlio sum total of her industrial power, although superior to Germanv and Great Britain in respect of certain essential raw materials and of potential energy from water power. On the other hand, the economic position of France on its dynamic side has been proftindly in flue need by oertain non-permanent- aids to industrial prosperity than for nearly four years have kept its industries at high pressure. The two principal have been a depreciated currency and the immense credits set in motion through loans for the reconstruction of her war-destroyed areas. Depreciation of the franc in relation to the currencies of Great Britain. America, Canada. Holland and other countries, stimulated production for these strongly absorbent markets; and the loans for reconstruction gave great buoyancy and purchasing power to the home market. It must he uncertain at the present time how far, after the eventual passing' away of these adventitious aids to industrial expansion and to posterity, the reconstruction of the financial position, the heavy burdens in store in redeeming the charges on lion' o and foreign debts, the rising world tendency towards higher protection of national leeonmic areas, will, leave French industry with that international competitive capacity that "ill enable it to occupy to its full producing power Hint industrial fabric w’ ,: within the last six years has been not wholly created, but greatly strengthened in its bases, re-equipped and reorganised in a very considerable men-

sure, and quickened by fresh commercial inspiration.