The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-03-29
Europe's Financial
Situation, Although
Bad Is Not Desperate
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Paris. March 2s.-Europe's imam
cial situation, though serious after
four years of war, 10 not desperate.
provided peace Ia signed forthwith
and the natural laws OF production
and distribution are allowed free play
according to supply and demand. 1t
Is the artificial barriers and govern
restrictions that block distribution to-
day. while uncertainty about the fu-
ture peace 10 delaying tho healthy re-
sumption of production.
Such Is the summary OF the imam
cial opinion which Is guiding the peace
conference, the delegates to which re-
alize full well that the world Is impa-
tfently awaiting their decisions.
While British fnanciers sometimes
talk pessimisticauy. there is little
doubt about British solvency. and her
commercial future IL regarded as
bright. Britain owes about 10000
900. 900 for the war mostly to her
own people. while she has claims on
other governments to tho extent Of
nearly $4,000, 100000. Part Of this
money. az, for instance, the Russian
debt, is doubtful: the rest is good as
gold"
Before the war her people had in
vested abroad to the extent Of about
v. Less imam t4.bUU,-
100000 were drawn In during the war.
900 due.
French Situation.
The French governments financial
position is less brilliant. chiefly be-,
cause France did not begin direct tax
alton until the second year OF the war.
when the invasion had upset every
thing. while Britain taxed her people
aim ost from the outset of the conflict
However. France has many very
rich citizens. some of whom made
huge fortunes during the war, and
these will come to the rescue X there
is any danger OF their government be-
ing stranded financially. ..
Finance Minister klotxe has in
CURED sharp criticism of late by his
assertions that the French public for
tune has been increased during the
war and that he proposed direct tax
on capital as well as n new income
tax.
1t is not true THAT the French mid
die class refuses to support Its gov
eminent but before conserving to fur
Their financial burdens II wants to
know how much Germany will be
made TO pay.
While a great amount OF money II
In circulation. ITS purchasing value Is
much reduced by imitation.
II Is expected that as soon as peace
Is signed. France will revoke the pres
emit barriers against imports, which
measure Is expected to sustain French
exchange abroad
Within six months after the sigma
ture of peace. French finances, ii is
believed, will be straightenad by req
oIute direct taxation policy with out
taxing the commodities Of life and
thus hitting the poor people.
Italy's Position.
1tafy's needs for the coming six.
months are covered By government
credits, but che may have a hard time
next fall, when the United States and
Britain NAV discontinue their ad-
vancea Italy needs coal but. with
the steady release Of ships. her indus
trial crisis is sure 70 be overcome.
When the tourist traffic is resumed
next spring, the Italians, like the
French. will rccuperate easily what
they lost during hostili.ies. Before
the war Americans spent abroad
about $500 100000 annually. The
hattlenelds Of France and Italy are
expected to draw many thousands Of
Americans and other foreigners who
in former days believed in seeing
America first. Belgium also expects
big share OF the tourist trade
IT is agreed on all side. that the
paramount thing Ia to let international
commerce resume its full pre-war ac-
tivity, and the essential pre-condition
for this is a quick signing of peace