The morning call., 1893-08-18
THE DEBT OF FRANCE.

In the absence of other exciting issues
il is ppssible that the subject of the public
debt of France NAV cut some figure in the
elections next Sunday. History contains
no example of such an enormous accumn-
Iatiou of Indebtedness as has occurred IN
France since the Franco German war, that
is to say in a time of perfect peace.
After the payment of the indemnity to
Germany in 1875 the French de BIT. exclusive
of life annuitieS, amounted TO 81. 200. 000,-
600. of which S40U0,000,0 900 was funded.
Skillful financial management enabled a
small reduction in this debt 20 be effected
in 1876 aud 1877; but in the last decade the
absurd expeditions to Tonqun and the
extension of French territory in Africa
have again raised the aggregate OF the
debt until now il amounts TO Sc. 200. U00. coo.
But to this must be added SAL, 900, 600 TO
represent the ca pitalization of the annui-
ties and S750.OO0.000 for debts of depart
ments and communes which are guaran-
teed by The state. Thus at the present
moment the aggregate public debt of
France, for which the taxpayers of France
are required TO provide interest, is not less
than $1,000. COO. COO This is burden on
about 3S,000.000 of people. No nation in
the world ever bore such load before. 1t
explains the increasing dearness Of living
In Paris and the growing poverty Of the
people in the departments.
Americans cannot understand such a
condition of affairs. When the debt of
the United States reached 81, 770. COO, coo in
1867 many intelligent and patriotic people
doubted whether so enormous a burden
could be borne and whether taxpayers
would put up the money for the interest.
And yet this is country with far more ex-
tensive resources than France. Atthe close
of the Napoleonic wars the debt of Great
Britain and Ireland was S4,2O0,O 600, GOO.
This burden has been reduced from time
to time ever since, but in comparison with
the wholesale extinction of the American
debt the repayments have been small.
1t must always be borne in mind that the
French debt is the savings bank of the
French people. Americans put their
money into railroads and canals and faclo-
ries and savings banks. The French put
theirs almost exclusively into the rentes
And they are an industrious and thrifty
people. Their incomes are smaller than
average incomes in this country. but they
generally save something every year. and
" nateNeT InFy save is lieut. 10 iEe OnVeTu-
ment The interest charge presses heavily
on al industries. and may account for the
constantly recurring labor troubles and
the gradual rise in rents. Sooner or later,
one would suppose. the weight OF taxation
would lead to reduction OF the army and
navy, but there are no Indications of any,
thing OF the kind at present. nor can they
be expected SO long as Frances nearest
neishbor is supposed to be thirsung for
war.
The safety of the French rente-holders
proceeds from the fact that the French are
their own creditors. Reputation only
rears its head when evidences of indebted
ness pass into foreign hands. If the
Mississippi bonds had been held by the
cotton-planters interest and principal
would have been faithfully paid. So the
French rentes are good property to bold,
no matter how large their volume. so long
as the great bulk Of them is held in French
hands