The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-10-08
French WORRIED
OVER DECLINING
VALUE OF FRANC
Effort viii Be Made Through
Trade to Stabilize Value
Monetary Unit Of Republic
in Worlds Market.

| ,PARls, Oct. s.--The Increasing demon
sllzation OF the foreign exchange mar
ket continues to cause deep anxiety In
business circles both In France and In
me United States. Some observers
! w 70 n francs, or twice lie normal
value, before stable conditions are
reached again
An American banker in Paris, from
whom 2 correspondent sought an eX-
preston OF opinion, described the sit
1 tsi as very serious for both coun-
The basic reason for the decline of
the franc is, OF course, the fact that,
while France has been importing enor-
nous quantities Of foreign-chefly
Ameriean--produets for reconstruction
and for food. she has been exporting
nothing, There can be no restoration
Of normal conditions untI France again
becomes producing country, an ex-
"Whlls France was losing her export.
trade during the war because she was
not producing, the foreign trade OF the
United States reached figures never be-
fore attained. 1t reached IN the year
ended June 80 last an aggregate value
Of siO,s206s2, 7A6. and the excess OF Ok
ports over Imports was s4.t30,ss2334
The possession OF such q huge trade
balance predieated rs a natural con-
sequence a premium on the dollar.
Germany's Bid for Trade.
THE situation is aggravated in no
small degree by the fact that the Ger
man mark is quoted at an unpreCe-
dentedly low figure. From across the
Rhine come reports of activity on the
part Of German business men in their
effort TO regain the commercial standing
which their country enjoyed before the
war. Not one OF her Industrial plants,
be i remembered, was destroyed In the
conflict When transportation facilities
In France have been restored and the
peace conference has finally concluded
Its labors, Germany viii be In a position
TO make an insistent bid for French
trade
Normally, the mark is worth franc
70 confines. Today II is worth only
about % confines, Germany may long
be considered an enemy nation, but az
yet more serious business situation will
present itself II the French importer
Is required to pay twice as much for
American made goods as in ordinary
times, while enabled to purchase the
German product at one-fifth of the Gus
tomary pFiee-based on the comparative
market value of the dollar, the franc
and the mark"
Max Cot, manager for Markt e. Co.,
Paris, importers OF American hardware,
explained the situation to correspond.
ent In these words: Virtually during
the whole of the war period, the French
government prohibited the importation
OF everything save articles needed for
government purposes or destined to
serve the actual economic life of the
nation. II was last July when this
ban was lifted, that the foreign ex-
change market became unsettled. Now
we cannot afford to import from Amer
tea because of the initiation of the dol
lar, That Germany will soon be able
TO make a strong appeal for French
trade 10 one of the most unfortunate
features Of the situation. There Is only
one thing for France to do-produce
to the limit of her ability"
The enforced interruption of produce
ton ties the hands Of many French
exporters who might otherwise be prof
ting from the situation. We did a
big export business with America before
the war" manufacturer OF dress goods
told the correspondent. But the Ger
mans destroyed our plant and now we
must walt until we can obtain looms"
Some French business men blame the
government for not lifting the ban on
importations earlier. Had the prohibi-
ton been removed soon after the sign
ing OF the armistics, conditions, they
believe would now be much less serl-
Gus, for manufacturers would have had
materials with which rebuild destroyed
plants and also raw materials.