, 1876-01-29
F R A N @ E.
From the Times }

Official Returns of the Revenue exhibit
a great and sustained prosperity in France.
The Government raises immense sum and
raises them with a facility beyond all expects-
ton. The country is now quiet, not a murmur
OF pain or discomfort is heard the artisan goes
brlskly to his task, and the peasant dopgedlv
pursueS his petty gains. Society is said to
have returnedto its nornalstate but to the limits
Of taxation that prevailed before the war tbere
can be no return. The Empire was by no
means economical, and its Budgets were far
from a good example to decent States, There
were mystery and trickery in its finance the
nation seldom knew how much was collected,
and never knew how much was spent. What
with extraordinary expenditure and supplement.
tary estimates and the bewildering machinery
OF 0lrenaentS, the Frenchman never knew the
real finance of a year until it was long past.
But the increase in the taxation of Franco
between the ~costliest peace year of the late
Empire and the year 1875 marks the largest
and most sudden accumulation of burdens that
has been seen in Europe. Speaking roughly,
France pays a third more than in the year which
preceded the war. AT that time the revenue
was from seventy to seventy five millions ster-
ing at present at least one hundred mil.
lions sterling are required. According TO the
othclal statement made two years ago, the
cost OF the war, the Indemnity included,
was $1,000 900 900 sterling. Of course, there
were further losses incidental to a great social
oonvulsion, such as the interruption and dislo-
cation of industry and the arrangement of
capital but the sum we have mentioned Is
what the French people have had to make good
through the agency of the State. They have
been bound to pay it directly, or to borrow it
and pay interest. The first process has been
impossible, except on a small scale and the
question has therefore been the capacity of
France to pay permanently, and to pay with.
out intolerable suffering, the interest on an
immense accession of debt, together with q
public expenditure at least equal to that which
prevailed before the war.
IN financial history of the past five years
has been full OF interest. The first illusion TO
be dlSsIpated was that the French would not
be able to raise the milliards required for the
Indemnity. We need not dwell upon what
is so we'll known further than to mention a
rumour that when negotiations were pending
there were financial heads in Germany clever
enough to see that a great deal more could be
got out of France, and to urge this in official
quarters, where the notion was received with
incredaIity. Prince BISMARCK came down
from ten miliards to five, believing that this
would absorb all the available capital of the
country for years to come. To undeoeive
him required boldness on the part Of a states
man rather than ingenuity. A loan was to
be raised, and the great thing was to ask
enough, and to ask it at once. The Govern
ment of M. THEIRS did not lose itself in any
timid and tentative finance, but called for q
great sum, and this very courage seemed to
evoke confidence throughout France and In
the neighbouring countries. The next step
was to meet the new liabilities. When the
world had recovered from its first surprise It
became critical on this point. 1t is very we'll
to borrow, but interest must be paid, and we
have now to see what taxes the Assembly
will devise, and how the national resources
will respond to them. This. question also has
received a favourable solution. Imposts in
proportion to the increase in the public liabili-
ties have been proposed to the Assembly,
voted, and levied. In some points these
have been injudicious, according to English
notions, and they have been sharply criticized
by political economists on both sides of the
CHANNEL. But it is only fair to remember that