South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-12-28
CLAIM POLITICS
IN FRANCE ARE
NOW STABILIZED
Country Begins New Year
With Confidence Greatly
Renewed, Says Report.

lr Associated Press-
PARIS Dec. 27.-Francr viii be
Ein the new year with far greater
confidence than the last This IS
in spite Of formidable handicaps such
es the balance Of trade running
against her al tho rate OF about
500 900. 900 francs "a month. about
90 percent depreciation OF the ex-
change value Of tho franc and the
consequent difficulty Of procuring
raw materials and machines. urg-
entity needed for reconstruction
Frances renewed confidence is de-
rived directly from tho result Of the
recent elections. These are regard
I'd here as having definitely stabu-
lied internal politics. ended all dan
ger Of revolutionary agitation for
some time TO come and brought
about "a better attitude by capital
and labor toward the immense effort
before France.
Money Forthcoming.
Money is forthcoming for invest
rnents in anything that promises sta
bility While investments in short
term treasury bonds are continuing
st the rate Of nearly 2,OOO.OOO.OOO
Uf francs a month. there is plenty
If money for industrial and com
snercial enterprises and Iong-term
loans. The 1000. 900. 00O-franc loan
10 provide immediate resources for
fndemnifying victims OF the invasion
Tvas over-subscribed before the Off
cial opening OF the subscriptions.
Important banks and industrial m
panies have lately increased their
capital To an aggregate OF nearly
100000, 100000 francs.
Transactions on the Paris bourse
which still are confined to cash deals
lave exceeded on certain days rec
ords OF pre-war trading when fu-
lures entered largely into the to-
tails. The upward movement Of all
andustrials which began before the
signature OF the treaty at Versailles
has been unchecked by successive Ii
quidations. This is regarded by
keen observers here as a sure sign
81 economic recovery.
Labor Sit1ation Improves.
Employers say the labor situation
is improved and that the last strikes
developed symptoms that the work
rrs themselves were becoming weary
Of long continued disturbances Of
business industry and transporta-
ion. They see a tendency against
frivolous strikes and an indication
hat only real grievances will induce
he wage earners to quit work here
lfter
Decentralization OF capital and in
iustry IS seen IN the establishing
Normandy OF textile industries to
replace those I'm the occupied terri
Tory destroyed by the war. This
movement has been greatly extend
ID by development OF waterpower
IN the region Of the Alps and the
tenter and south OF France. Indus
Trial leaders say that no particular
legion OF France hereafter will mo-
ropolize any industry and declare
hat this scattering will prove bene-
icial and result I'm more equitable
recovery of an parts OF the coun-
,ry
Head Government.
Powerful financial groups are at
he head OF "a movement TO transfer
important industries from the coal
-gior to southeastern France where
aatcr-powcr soon viii be available
1ther groups are being formed 10
-sclop manufacturing centers near
ue coast So as 20 reduce the cost
,f transporting raw materials Indus
r.aI leaders say that this activity
81. ar capital. supported by
uc labor from what has
lcsr 1ed as "a wave Of Ga
ancs. .t I'd healthy tone to the
staation.
instability OF the exchange value
IF The franc is regarded as one Of
ne weakest points i'm French con-
itiors Do is pointed out that
France cannot pay twice over ar
present high prices for supplies She
needs and that is what the present
ow value of tho franc means The
Frcrch government Is now studying
complete renovation OF her 81
raucial policy with a view to making
such provisions to meet her obli-
cations ass Will give greatest stabl-
tty at home and abroad.
Withhold Details
Details OF the new financial policy
ere as yet not disclosed hut 10 is
understood that it comprises. firstly
large interior loan TO take MP all
short-term bonds and floating debit.
md secondly. important increases i'm
al taxes 60 bring the revenues up
20 the annual budget estimated to ~c-
7uire 10000. 900. 600 10 - 600 600. -
900 francs II IS not expected that
any internal financial arrangement
ran exert more than q normal i'm
huence on tho value ~ the franc
abroad and this may he said TO be
the object Of the greatest anxiety I'm
official circles
Tho building trades do NOT show
any disposition 20 undertake import
ent work while obliged 60 pay three
times the normal prices for MAJ
terials. The result is that recon
struction work is bcinE held mp. aI-
though considerable progress is re-
ported from some sections OF tho
invaded regions This progress. aI-