The Sun.
London, England, 1869-01-12 00:00:00

CORRFRPONDENCE FROM PLUM

(FROM OUR OWN CORRESPONDENT. i

PARIS, MONDAY, January 11.

One of the great events of the year—the publication of
the Budget report—has just come round in due course, and
is of such a nature as to afford reason for some satisfaction.
The French finances are still far from what they should be ;
indeed, there can be little hope of the present generation
seeing a perfect equilibrium, but there can be no doubt
that the budget of 1869 is a considerable improvement on
that of 1868. The report just published contrasts with those
which have preceded it by a general tone of optimism. M.
Magne, having improvement to note, is able to keep out
of sight the great fact that the amount of improvement
effected is not such as to leave the income and expen-
diture of the State in a relatively satisfactory con-
dition. It is true that M. Magee is obliged to
confess that the great loan of last year has not had the
effect of " transferring our financial difficulties into a
flourishing state of things." But be is able to point to
the success of the loan itself, the diminution of the floating
debt, and the gradual rise of the ievenne, as • ach fur-
nishing matter for congratulation. And such isundoubtedly
the case, though there is a little of the charlatan n'wut M.
Magne's statement. He has made the most of his impro% e-
ment. He has taken care to paint a picture as favourable
as possible for the eyes of the electors, who will soon be called
upon to choose another Corps LtfgisLaif. But, divested of all
exaggeration, the report does shew an amelioration. The
revenue from indirect taxation has grown by £1,360,000
since the last year—a gain which exceeds by £400,000
the increase of 1868 over 18C37. The budget
rectificatif has disappeared ; that is, the estimates of
income and expenditure have not been so greatly at
variance with the facts as they usually are. Then the
floating debt has been reduced, not so much as was
anticipated, it is true, but still by a sum which brings
it from £36,080,000 to £29,oBo,ooo—just seven millions
sterling. These are the unquestionable advantages which M.
Magne isable to offer in his latest financial statement. They
are met by serious drawbacks. Passing by the Minister's
glowing account of the success of last year's loan, which
was by no means so unqualified as he represents it,
there comes the serious consideration that, though
M. Magne succeeds in reducing the floating debt, France
has no guarantee whatever that it will be kept at that
figure. In 1864 a loan of twelve millions sterling was
contracted, and by its aid the floating debt, which was
then at thirty-six millions, was brought down one-third.
But it soon mounted up again, so that by 1868 the
unfunded debt had risen once more to thirty-six
millions. Now, of this last loan, it was hoped that at least
ten millions would have been available for the diminution
of the floating debt ; but it turns out that only seven
millions are available. Thus its total has not been
diminished so far as was hoped, whilst there is
not the slightest ground for the belief that the unfunded
obligations will not again mount up, as they have done
since 1864, so as to reach the original figure. There is
every reason to fear, on the other hand, that such gradual
increase will again take place. The Budget presents
nothing new except these isolated deductions. The general
financial policy of the Empire is in no wise altered. The
old scheme of having two Budgets—one presenting surplus
and looking favourable, whilst the other eats up all the
surplus and accumulates a large deficit—is still retained.
The extraordinary Budget remains, as do the
other obnoxious features of the annual financial
statement. The reductions are reductions of detail.
A policy of peace and disarmament can alone produce a
report which is in any way different.
The latest bulletin of the Marquis de Moustier reports
some improvement, but his condition is still all but hope-
less. He has received the last sacrament from the Arch-
bishop of Paris.
The Government has gained another electoral victory at
Lille, where the Opposition has almost always had the
advantage.

THE TFEA THEE TABLE.-THIS DAY.