The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, SEPTEMBER 28, 1926. FRENCH FINANCE.

Hokitika Guardian, 28 September 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, SEPTEMBER 28, 1926. FRENCH FINANCE.

Tub difficulties of finance in France is the pivot on which political developments in that country revolve. But the wealth ol h ranee is so material, that as a New York financial journal remarks, the depreciation ol the Irane is not indicative of the general conditions in France. In the war the losses of individuals were appalling, but there was no corresponding loss of wealth to the country as a whole. In fact a great recovery of economic

strength occurred while the monetary depreciation was going on. At tlje close of the war a large section of northern Franco was devastated and many of the most important industries were in ruins. So far as the industries are concerned the work of reconstruction is completed, and unquestionably they are more efficiently equipped and have larger capacity than before the war. The provinces Alsace and Lorraine are again a part of France. In 1013 the iron and steel making capacity of France was much below tiiat of England; now it is greater than England’s. Industrially, France is a new nation. The cities make a fine showing of new buildings and many important public works are under way. The suburbs of Paris give the impression that a new city lias encircled the old. Whatever is clone to the paper currency will affect none of these

kinds of wealth. The lands, buildings, railways, docks, power houses, industrial equipment, and industrious population, all will he there, and they constitute the productire, debt-paving capacity of the country. They cannot he made productive, however, without a monetary system. The country is not ruined, but embarrassed by a mass of pressing obligations and by the instability of its money. The people of the United States will regret that the debt

settlement hot ween the governments of France and the United States should be a factor in the present financial situation ih France. The debts cannot be said to have been an active influence in producing the crisis for with the exception of that for 400,000,000d01. on account of war supplies taken over in France they have not reached the stage of collection or even of appearance in the French budgets. The Treasury deficits have not been due to the foreign debts. Moreover, hv the terms of settlement with this country now pending for ratification payments are fixed at very moderate sums over the next five years, with certain optional postponements. This concession was to allow time for the French Government to get its finances in order. The pro- 1

cess of putting; the finances in order is being: tackled with some show of earnestness now, and France should lie on the high road to recovery. At the same time, her war debt will be a burden no less than that of the war burden of Great Britain. This crushing debt will be a national anchor restraining both countries from attaining, for a long time to come, any hope of complete financial rehabilitation.