New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-10
Difficult Budgetary Situation
MonOpoIizeS Attention of
C0untry'S FinanCierS.
REASONS FOR NEW LOAN
Prospective Deficit of Almost
S500,000,000 Far Beyond
the Power of New Tax
alton to Produce.
fBy cable to The Tribune. !

Paris Nov. 9.-After a long series OF
Respondent sessions on the Bourse a
very slight favorable reaction has at
last set in. The market is less weak,
though foreign bonds are stationary.
Even in regard to Mexican securities a
more hopeful feeling prevails.
The fact Of the matter is, of course.
that the whole financial talent Of the
nation has been interested in the de-
tails Of the ministry's financial pro-
posals, for the budgetary situation has
never been so difficult since the years
Immediately following the Franco-Ger-
man War.
For the current year the government
showed exceptional monetary resources,
amounting to more than S52,0O0,000.
apart from about So. 100000 asked for
on short term treasury bonds for the
needs of the navy. Moreover, nearly
So 100000 for expenditure was held,
apart from budget calculations.
Therefore the budget for the coming
financial year has an inherited deficit
of almost S1O6,OOOOOO. Supplementary
credits are TO meet this special outlay,
which is in no way included in this es-
innate. The deficit Of Sl06,OOO0D
handed on to next year will have to be
met in credits for the following f1nan-
cial years. Attempts have been made
TO deceive the public mind as TO the
real causes of the present difficulties,
but the budget for next year now under
discussion will have to bear the weight
of a considerable increase of expenses.
It is believed that S22,O00OO0 more
will be wanted for the War Office in
consequence of the growth of enrolled
numbers and ornaments.
NJ. Almond points this out in his re-
port TO the Senate on the budget for
the current year. 4 higher figure VIII
result from the general rise ~ prices
Of supplies and the considerable in
crease in salaries. The most moderate
estimates show a budget inflated by at
least 81, 100000 TO meet engagements
consequent on previous credits. Even
If the requirements for Morocco are
reduced to $34,000O0O and a sum Ct
IS. 100000 can be saved by various
economies, the Finance Minister viii
have TO find nearly S140,00O0O0 TO bal
ance the budget for next year without
taking into account a probable increase
of revenue.
The fiscal year Of 1912 gave sur
plus of receipts Of about S36,OOo,OOO
from impost duties and direct taxes;
therefore an equivalent sum will have
to be deducted from the deficit There
will be a gain in the coming financial
year Of the lump sum from the over
flow of which the delayed budget FOR
1913 was unable TO benefit Thus the
insufficiency of revenue will figure at
about S11OOO0OO0.
There are however, other pressing
monetary needs which do not affect d.
rectly the budget under discussion, but
which cannot be omitted from full
statement of the condition Of French
finance. A drastic financial effort is
now demanded to safeguard the ma
tional security.
Two projects have been placed by the
government before the chambers for
the imp. -vement Of the defensive
forces of the country. The first, re-
ferring to armament. stores and build
ings. was reduced from S1OO,O0OO0 TO
SS4 100000, spread over period Of five
years, and the second proposal, dealing
with the larger contingents serving
with the colors, stands in need Of
credits totalling SSS,00O,OOO, OF which
figure S47 100000 is wanted for the
present year.
New camps Of instruction are want
ed. furnished with all modern and per
fected accessories in infantry and cav
airy and small arms. as well as guns
for the artillery. Technical opinion es-
Inmates the total sum required at
$500 OOO.O 600. Some, indeed, think that
| 800 100000 may be needed before the
country will be absolutely secure in the
event Of war.
special law was outlined dating
from May - last which had in view
loan Of $2OOOOO,O00. A loud outcry
followed in several political quarters
against any substitution Of fresh taxa
| ton for a loan. But neither the COM
mercial world nor agriculture is in
position to bear supplementary con-
tribution to the state, which. including
the budgetary deficit, would range from
5000 OOO. 900 to $5O0O00,000. Though
all desire to aid the state, workers OF
all conditions would risk a collapse
under the heavy load.
| Yet the necessity for new resources
| is indisputable. The financial sins OF
the past in the form Of unsound imam
cial legislation will have to be borne as
well as the debts from wasteful eX-
penditure and reparation will be most
efficiently carried out by neither crush
ing labor nor soaring capital. The best
method for obtaining the needful capt.
| tai is found in double operation care
fully combine Of state loan and skill