The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-03-10

power of the country Is already taxed To the
utmost, and that any undertaking likely to
augment the present burdens, such for cx-
ample as renewed resort to war, must be
put off at least for one generation.
The capital point necessary to bear in
mind, in order to appreciate the actual and
prospective situation Of the French finances
is the fact that the expenses of the late war
were not, as is commonly supposed, all liqui-
dated with the proceeds of additions to the
national debt. Well nigh imprcgnnble as the
credit of Franco appears in the light of re-
cent events. it could not, according TO NJ
SAY, have supported such strain. When
we consider the enormous proportions ac-
qurod by the three and five per cent. cOlsols
in the latter days of the Empire, we are not
surprised that after borrowing one billion
eight hundred millions of dollars, the inan-
cicrs of the Republic should have felt con-
strained to close the sO-callcd grdpf Hrrc. or
subscription book of the funded debt. There
still remained n large floating indictment
which had TO he met in other ways. Three
hundred million dollars. for example, wore
due to tho Bank of France. and much moro
was owing To what may be regarded rs an
impcrsOnal creditor. tho reconstruction of
the military armament. The plan approved
by the Governments Of THEIRS was in general
to see whether the contributivc forces of the
country might not supply sufficient means
to- ,ttle such outstan ling obligations. be-
sidc4 drfray wing current expenses. Accord
ingly. the impoEs or excise dues alone.
voted by the Assembly, were framed to yield
an annual return of one hundred and sixty
million dollars.
At first sight the results of this policy ap-
pear entirely satisfactory hut upon close
scrutiny the resources of France will not be
found 80 elastic or in"xhaustihc as has been
hastily Inferred. To begin with. much Of
the indictment nominally removed has
merely undergone "A change of form. Again
the budget. instead of contracting, is ac-
tually expanding with every year. and
finally the point has been reached beyond
which, in the judgment Of VI. SAY, the coun-
try will not respond 10 augmented drmnnds.
Except a remnant Of some eighty million
dollars the sum due the Bank OF France has
boon paid but how In large part 10y the
issue of short-term treasury obligations
payable ut various times prior u 1859. To
meet those treasury bills and bonds of u
like character required for military and civil
purposes not cla-scd under current cXpcndi-
turcs il has boon found necessary TO incnr-
pnratc in the budget not less than thirty
millions annually. Meanwhile. notwith-
standing the most wary and resolutc econ
omv. what may hc called the normal sources
Of uuilavarc becoming moro cxacting with
every voar. Indrrl. the amount set apart
for the ac1uttal ni interest upon the funded
debit is almost the only item which remains
stationary.
Fora time it se,mel that the productivc
power of Fran - kept plcc with its increas-
Ing burdens. til, test Of course. being the
excess Of revenue over estimates. But in the
year which has Just closed. this surplus
proved to be 50 small that NJ. SAY who l.
far from being pessimist, attempts 70 ex-
plain it 10y temporary causes. All allowances
made. however. he distinctly recognizes that
the limit Of contlibutivc power has for the
present been attained, and that any consd-
cradle augmentation of taxes would defeat
its purpose by Diminishing production. In
presenting the budget for the incoming year,
the Minister stated that in conformity with
the custom OF his office. ne was already en-