New-York tribune., 1912-01-02
French Situation Shows No I'm.
provement for Last Year.
HEAVY DECLINE IN EXPORTS
Wave of State Monopoly of Pub.
lie Service Companies. Consid-
cred Peril by Financiers.


into France shows an increase over the
preceding eleven months of sl26,OOO,OCo. and
in the same period the value Of foodstuffs
Cereals, wine, fruit, meat, eggs, cheese
butter and vegetables exported from
France has diminished by over S25. 600 600
France is essentially an agricultural coun-
try, and this unsatisfactory result is large
ly caused by the failure of the crops owing
to the drouth of last summer. In regard
TO raw material for industrial purposes. the
imports from abroad have increased by
1000. and the exports show diminu-
tion OF s3.2O00Oo. These figures indicate
greater need Of certain French Industries
to augment their supplies of raw material
and show that their prosperity is increas-
ing. This is the case with the manufact-
urers using cotton and wool, and notably
those working with metals. Turning to
manufactured goods one finds that the i'm
ports have increased by t22O0O,coO, which is
somewhat unsatisfactory compensated for
by an increase in exports Of only S21. 10000
There is no doubt that the skill and
taste shown by French manufacturers COR
tinue to he appreCia ted abroad, but foreign
competition is gaining ground, and during
the year the French superiority has not
held it's own. The above figures show that
the volume Of trade has increased during
the year by nearly s2Oo,N0c0O. and also that
France is falling behind I'm commercial
competition with Great Britain and Ger
many Only a few years ago France sold
to foreign countries manufactured articles
amounting TO over three times the value OF
those bought from abroad. To-day the sales
and purchases very nearly balance one an
other. This is the first time that such a
result has been recorded since the disas
trous period of the Franco-P Prussian War
Of 1911. French manufacturers have taken
alarm, and are setting about TO find new
markets and to regain their former place
by developing trade IN markets already eX-
isting A national congress will soon meet
in Paris to study the situation. which
causes no little uneasiness.
The financial situation OF the French gov
ernment is going from bad to worse The
budget estimates for 1912 contemplate a
total expenditure Of over $50 900 00O, 600, thus
exceeding by 100000 the expenses allowed
by the budget of 1911. This is the largest
expenditure ever made by France in time
of peace The national expenditure OF 1911
results in deficit of nearly 100000. The
national debt of France is far greater than
decreasing it is each year growing more
and more formidable. 1t is true that the
French debt is largely owned in France,
and affords a safe. although little remuner-
ative, source for small and thrifty invest
ment But the increasing expenditure can
only be met by increased taxation or by
new loans Meanwhile the French bir-h
rate is falling off. The Hons share OF ex-
TO- he pT1nN NJ
the French taxpayer never grumbles about
this, because he knows that national exist
ence. in the present state of Europe de-
pends upon national defence. But terrible
holes in the budget are caused by the leg
isation brought about by the collective
Socialists. tending 10 bring all the great
public enterprises under the absolute con-
troll Of national or municipal government.
A striking example Of this disastrous pol
icy is furnished by the recent purchase by
the state Of the Western Railroad Com
pany. Under the government administra-
ton the "Ouest-Etat," as the company is
now called, has become the worst man
aged railroad system in France. The pub
lie complaints IN regard to passenger and
freight traffic are loud but unavaling.
The excess OF gross receipts over the eX-
penses Of exploitation Of the "Ouest-Etat
has, under the state regime. fallen from
sl5.OOOOOO TO Ss,0OO,O00. Moreover. the total
ordinary expenses for 1911 are S6i, ,0CO,OOo and
the "extraordinary' expenses exceed 81
OO0GOO while the deficit of exploitation
reaches the fantastic sum of over Sl50J0,0o.
Meanwhile all the other French railroads
yield reasonable profits. In face of these
facts. the government contemplates asking
parliament to approve the bill for the pur-
chase by the state of the Eastern Railroad.
All impartial fnanciers are unanimous IN
regarding the state control-the state mo-
nopoly-uf railroads, telegraph lines, tele-
phone systems, and other public services In
France as dismal failures.
An instance of this is the Paris telephone
service, which is the most expensive In
Europe-the annual subscription for which
is more than $50, and in return one gets
service far inferior TO that Of London,
Berlin, Vienna, Brussels or Rome. To meet
the increased expenditure the Minister or
Finance proposes 20 resort to increased
taxation. yet the French taxpayer is al
ready burdened with the heaviest load ever
vet inposed in time OF peace, by any gov
ernment In Europe. Conservative fnanciers
and noIitlcal economists consider the pres
emf wave of state monopoly as grave ma
tionaI neriI. The only practical reaction
aeainst the movement is the recent vote OF
the Senate. which refused the adoption OF
q hill authorizing the Minister of Public
Works 20 organize the shops OF the butch-
ers and bakers throughout France on
collective" basis. bringing them within the
fatal circle OF municipal monopoly
This trend Of state socialism has begun
10 threaten that solid and admirably or
ganized institution, the Bank or France
Socialist deputies got II into their heaos
that the shareholders OF the Bank OF
France were getting unduly large pronts'
at the expense OF the state, and introduced
A bill requiring the government 10 annui
the privileges OF the Bank OF France IN
order TO 'nationalize" IL, just as the
Western Railroad has been "nationaliZed.
with such rrinous results. The Chambers
of Commerce Of Paris. Lyons, Marseilles
and Bordeaux, however. were soon up In
arms, and the merchants and manufactur-
ers made such vigorous and logical protests
against the proposed measure that the gov
ernment decided TO ignore the Socialists
and not to interfere with the existing
privileges Of the Bank OF France which
were renewed in 1897 and which should last
ntil 1920. But the ministry has now agreed
IN a sort OF compromise with the Socialists
and. according 70 present arrangements
bi,l will soon be introduced In the Cham
her Of Deputies which. while maintaining
tho. privileges Of the bank until 1870. VIII
comnel the bank TO make important con-
cessions 20 the state.
A,.houoh discounts seldom exceed per