Evening star., 1901-10-30
Financial Crisis Threatens Waldeck-
Rosseau Ministry.
RECEIPTS ARE FAR BELOW EXPENSES
Proposed Loan to Be Secured by
Chinese Indemnity.
TO TAX IMPORTED WHEAT

While the United States with forces or
war in a distant part of the world rejoices
in the largest treasury balance it has ever
known and Great Britain finds more buy
ers for her bonds than she could ever ac-
commodate. the republic of France is in
volved in the greatest financial difficulties
of it's history. In a time of absolute peace,
without any extraordinary expenses except
those attendant upon its reception to the
czar and recent dinner to the mayors of
the communes. the nations receipts for the
past nine months have fallen SIS, ZOO, 600 be-
low the estimates and SIS 900 900 below the
actual receipts for the corresponding nine
months in 1890 The most extreme efforts
have been made to cover this deficiency,
but without any notable success. and the
governemnt is confronted with the likeli-
hood of an increase of the national debt.
already the largest ever incurred by any
nation in the world, for the purpose of
meeting the ordinary expenses of Its opera
ton.
This situation Is due to several causes,
but chiefly to bounty legislation enacted
several years ago to influence the votes of
the sugar beet and wine districts and to
the administration of the government along
the most extravagant lines. The minister
of marine for example, has obtained legis-
lative support for scheme to construct
100 warships of the Leon Gambetta type
a single vessel costing 5S49, 700. The en-
tertainment of the czar cost the national
treasury over 100000. Over $4000,000 is
due on sugar bounties. The national depu-
ties have created new offices with large sal
aries practically without limit and In spite
of the most urgent remonStrances of the
ministry.
Regular Income is Insufficient.
Each month for about year past the
budget of expenses has exceeded the possi-
BILE income of the nation and ordinarily the
discrepancy has been not less than 10000
francs. The Waldeck-Rosseau ministry,
the strongest in the history of the third
republic, has manfully stated the situation
without reservation as each months bal
ance sheet was completed, that legisla-
tors. administrative officers and the whole
body of French citizens should be made
aware of the treasuryS true condition.
This course is thoroughly characteristic
of NJ. Waldeck-Rosseau and his minister of
finance, NJ Caillaux, and is almost Ameri-
can in its ingenuousness. But it has had
apparently disastrous effect on French
trade Spectators have been made to de-
clare through the nationalist press that alb
solutely no business is being conducted on
the bourse. TradeSmen are quoted as say
ing that not even during the Dreyfus ex-
citement have they been SO pushed to
meet their rents. A deposit of nearly
S9,OO00O0 of shop accounts held by the
Bank of France has now shrunk to about
100000. On 151 of the stocks quoted as
first class there was lost during the first
half of 1891 nearly 1900 coo. A persist
ent fall in the credit of the Bank of France
is stated as merely the reflection of what is
taking place throughout the country. A
prominent banker of Lyons estimates that
not less than S16,OO0,000 has left that dis
trict alone during the past eighteen months
Finally new taxes on French investments
said to have diverted to foreign stocks
and enterprises about $2i 100000 of French
capital FI >, --~ff-.-
A French Explanation.
lowing statement of the case: "The great
est trouble in France now seems to be
financial. Paris seems to be afflicted with
some sort of fever unaccounted for by any
known conditions of finance, while the
making of the new budget to meet the
deficiency is full of weighty problems The
French taxpayer is proverbialy prudent
and patient, but when he is alarmed he
acts much like other folks. and he seems to
be getting alarmed now"
Many students of economics have laid the
present crisis to the particular tariff now
applied on imported foodstuffS. Yves Guyot
spoke most earnestly along this line al an
important dinner given in Paris October
% Mutton which could be bought in Lon
don for Id cost franc and a half in
Paris, he said. Forty-SiX neceSsarieS of
life which cost 81 francs in London cost lOl
francs in Paris. THE effect of the particu-
lar protection given wines has been to de-
velop the wine industry of other countries
and France has thus lost The monopoly"
The export and import figures for the
first six months of the year, however do
not bear out NJ. GuyOt. The foodstuffs i'm
ported during the corresponding period of
1900 were valued at 3SS, $40, 900 francs
while those for the past six months were
valued at 800, ,S21 600 francs. The value of
food products exported in the first six
months of 1900 is given in the official re-
ports as 1863 $4,000 francs, and in 1901 for
the same period as :}SS,329 900 francs. Thus
France has not only relied to greater ex-
on hDr nx-t, ODD H..
ports of those commodities have grown by
about ls,oOO,OOO francs for a period of six
months.
But this favorable trade condition as to
lood supplies cannot possibly continue The
French grain crops offer a very poor pros
pect- Wheat, rye and maslin, the last
named being wheat and rye grown to-
gether, have fallen far below the average
crops of the past ten years. Wheat for a
single example, is estimated at 304 21O O55
bushels, against actual harvest of 326-
oS2,6Oi bushels last year. In consequence
of this decrease in domestic production
perhaps sixty or seventy million bushels of
wheat must be imported during the COM
ing winter.
Measures of Relief.
With French capital seeking investment
In other countries to avoid French taxes.
French savings banks losing their deposits
rapidly, French gold leaving the country
at an unprecedented rate and the expenses
ceipts, the French ministry has resorted to
the most extreme measures. New taxes
nave been imposed on furniture and ward
robes. Complaint has been made to the
deputies that they acted 'as if they formed
part of an organized syndicate for pilfer-
ing the budget in order to add to their
patronage and popularity by creating new
posts for new functionaries Measures
are now before the legislative assemblies
looking to a complete reform of the ma
ton $ finances. Duties are proposed on for
elgn wheat importations. In financial circles
the belief is gaining ground that new
French loan has been fixed at $50 900 900 on
8 per cent basis, to meet the interest on
which the annual installments of the Chi
nese indemnity are to be pledged Gold has
peen found In large quantities in French
Guiana, and the government is preparing
10 assess the output certain royalty
rights: Finally the government has voted
Itself monopoly of petroleum.
The per capita tax is already as heavy as
the French people can reasonably bear.
and the furniture and wardrobe assess
ments are not likely to be borne without
remonstrance. Financiers have already OBJ
Jected TO the new features of the tax laws
by calling attention to the sugar and al
cohol laws, with suggestions that cutting