New-York tribune., 1901-07-27
FRANCE AND HER DEBT.

France has long presented the curious paradox
of one of the two or three richest nations of the
world being at the same time by far the most
heavily in debt. In round numbers her debt is
more than 20 per cent larger than Russia's, the
next largest, while. of course, her per capita in
debtedness is several times greater, being about
$3.50 against less than $50 in Russia. More
over, the French debt Is steadily increasing de-
spite large yearly redemptions, the gross In
crease being enormous and pretty steadily kept
up. This Indebtedness is commonly attributed to
war. That is not altogether just. 1t is true
that war is accountable for a large share or 1t,
but the fact remains that the debt keeps on In
creasing in time of profound peace. 1t is true
that the burden of great army and navy rests
upon the nation in peace as well as in war.
But even that does not account for all the debt.
We must, strangely enough, bracket with the
army and navy rs sources of Indebtedness the
schools and charities, for which lavish sums
have been appropriated.
In 1870 before the great war with Germany,
the French debt was about 81, ,059, ,20N0O0 In
1876 it had risen to more than twice that
amount-nameIy S46SI 100000. the increase
being chiefly due TO the war But with the re-
turn of peace there waa reaction toward
diminutiOn of Indebtedness. On the contrary.
by 1885 the debt was increased 10 S5,571,20 OnH
say. a hundred millions a year. Pretty nearly
the same rate of increase is still maintained.
the total in 1900 being trife more than $1,000
100000. At that rate. and with population sta
tionary and commerce by no means keeping
pace with its rivals the outlook must be re
garded with some apprehension nations 5
debt and its debt per capita. cannot be IN
creased indefinitely without ultimate crisis.
Granted that France INDUCES in no more such
episodes as those in Tonqun, Siam, Tunis and
Madagascar, the practically fixed charges with
which she has sadded herself are sufficient to
keep her debt growing.
At the same time. the country. indicated hy
the condition of the banks, was never before so
rich as now Moreover it must be remembered
that the nation the railroads, or most of
Them and these constitute an asset of enormous
value. which may properly be set down aea'rst
the public debt Perhaps the most hopeful
feature Of the case is however, that at last
public men have begun to take practical IN
terest in the subject of the debt one Of para
mount Importance. Hitherto they have not
done so. but have gone on piling up the debt
with light hearts and careless minds. Serious
attention TO the gravity Of the situation should
result in some retrenchment, and In some sys-
TEN of finance which will provide for reduction
and ultimate extngushment of the debt, II
has been the secret of Great Britain's marvel
lous success in national finance that her fore
most statesmen have been skilled fnanciers,
devoting a large share of their best attention
10 the ExcheQuer-the treasury and The gov
ernment being almost interchangeable terms.
It is Of good omen for France that n measure
OF the same regard for finance is now appear
ing in her public life.