The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-27
FRANCE TO REDUCE
PURCHASING HERE
French Exports From United
States to Be Handled by
Private Methods.
7. FREDERIC BLOCH BACK
Discusses Situation in Ster.
ling and Franc Exchanges
and Post War Problems.

Until the eonciusion OF peace the
French Government purchases in this
country win be ss y minimum and the
exports to France thereafter win have
to be handled by private Arrangements,
which may take the form OF private
credits or the sale here Of new foreign
securities. according to J. Frederic Bloch.
chairman hero of the Frsnchs Finance
Commission, who returned from Paris
Tuesday on the George Washington, and
who was interviewed informally yestsr-
day.
coincident with Mr.. Bloch. return
there was a decline In French exchange
OF almost / per cent, the rate going as
low as 5.ssh francs to the dollar yes
tsrday. with attempts being made to do
business at $40. On Investigation It
was found that there was no direct con-
nection between Mr.. Bloch's return and
the decline In exchange. the sales by
leading banks having been due to the tri-
angular parity bstween Paris-London,
Paris-New York and 'London-New York.
Taking the frst and tho lastcable rate a. .
basis, the parity worked out at approx
mately 5.S7 francs to the dollar and the
momentum of the selling movement car
ried the rate well below that parity.
Mr.. Bloch. however. brought back word
that the decision to unpeg sterling and
franc exchange was due to the accep-
lance of the fundamental principle that
the rates of exchange should be rendered
subject to business rather than to arti-
ncial regulations, and that the first step
In the direction Of the resumption OF in
ternational business unhampe.ed by Gov
ernmental purchase had to include tho
removal of pegs on exchange. He
pointed out that the decision was not due
TO a desire to restrict unnecessary i'm
ports into France, which can be stopped
moro effectively by Governmental pro-
hibition. which would restrict all i'm
ports into his country. He said that the
importer of the unnecessary commodity
might be able to charge his customer
the cost Of tho ,unfavorable exchange. but
thai the importers OF such raw material
~ wool. cotton. GOAL, &C. would be I'M
able to absorb the cost in the selling
prices Of the finished products which
would meet with competition.
Mr.. Bloch made It clear that II the
manufacturers and exporters In the
United States want French business they
will have to make private arrangements
for the necessary financing. rs the cash
will be furnished neither by tho French
nor United States Government outside Of
the limited aid to be extended to the ex-
porter by the War Finance Corporation.
Mr.. Bloch expressed the opinion that
all private arrangements must await the
actual conclusion Of peace. He said that
he knew as yet Of no definite steps In
that direction. The present. he said. 10
largely icing given over to q considera-
ton of Just where France stands. Indus
trially and financially. and the read1ust-
ment period. he thought. would be q
matter OF three or four months at least
There IL practically no unemployment
problem in France. in Mr.. Bloch's opin-
ion. many returning soldiers going into
agriculture and others into the war
plants, which are rapidly being con-
verted into q peace basis. To mention
an example. LIE Citroyen. a big shell
plant In the vicinity OF Paris, Is going
into the manufacture OF a standardized
automobile. which might be called a
French Ford" he said. In page adver-
tisements in Partisan papers II an
nounced that deliveries could be started
In 1orty-hve to sixty days. and that
sve tually the capacity would be 10000.
In all Of France. outside OF the devas-
tated districts. an attempt In being made
TO ret back to pre-war conditions &C
cordinR to Mr.. Bloch. who pointed out
that the readjustment tasks are almost
beyond conception. In the devastated
districts the problem Of decision as to
what Is worth rehabilitation is being
considered. but the restoration 10 COM
plicated by the uncertainty a. to what
will be recovered from Germany. The
railroads, especially. need replenishment
Of equipment, traekage. bridges. &c The
French, according to Mr.. Bloch. are at
lacking the immediate problems with
courage and persistency. but the road Of
rehabilitation. no thought. win be a
long one.
Questioned abou the French securities,
which had been mobilixed and domiciled
in New York to the extent OF about
sso6. 000. 900 market value. Mr.. Bloch
said that nearly all OF these had been or
were about to be transported back to
Paris. Some OF these will be returned
to their owners but a far larger part, he
thought, would be used to obtain credits
with such neutrals as Norway. Spain
and others.
Asked about the French High Com
mission, Mr.. Bloch admitted that Il
would cease to Junction hero by the end
Of this month, but the French Finance
Commission, he thought would continue
TO function for some time. as well as
would other separate organizations.
what 10 being given up Il merely the d.
rectin9 or centralized head for all the
commissions which now win act sepa-
rately.
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