Evening star., 1919-12-28
FRANCE TOBEG|N
: NEW YEAR WITH
BETTER OUTLOOK
Far Greater Confidence Is
Declared Due Result of
= Recent Elections.
r. the Associated Press.

Recent Elections.
P- the Associated Prr>>.
J'ARIS. December 21-F'rance vii
begin the new year with far greater
confidence than the last. This is in
spite of formidable handicaps such as
th., balance Of trade running against
her at the rate of about 100000. .00C
francs a month. about 30 per cent de
probation of the exchange value of the
franc. and the consequent difficulty OF
procuring raw materials and machines
urgently needed for reconstruction.
Frances renewed confidence is de-
rived directly from the result of the
recent elections. These are regarded
here as having definitely stabilized in
formal politics. ended all danger of rev
olutionary agitation for some time to
con, and brought about a better att
tude by capital and labor toward the
immense effort before France.
Money is forthcoming for invest
ment IN anything that promises stahil-
ity. While investments in short-ternl
treasury bonds are continuing at the
rate OF reariy 1000. O0O. 900 francs d
month. there is plenty of money for in
dustrial and commercial enterprises and
long-term loans.
Big Loan Is OversubScribed.
The 1000, ,00O, 600 franc loan to pro-
vide immediate resources for indemnify
ing victims of the invasion was over
subscribed before the official opening of
the subscriptions. Important banks and
Industrial companies have lately in
creased their capital to an aggregate of
nearly 500, 900 100000 francs.
Transactions on the Paris bourse.
VIII CHI still are confined to cash deals,
have exceeded on certain days records
of pre-war trading when futures en-
tered largely into the totals. The up
ward movement of all industrials. which
began before the signature of the treaty
at Versailles. has been unchecked by
successive liquidations. This is re-
garded by keen observers here as sure
sign of economic recovery.
Labor Situation Improves.
Employers say the labor situation
is improved and that the last
workers themselves were becoming
weary of long continued disturbances
of business, industry and transpor-
tatiOn. They see tendency against
frivolous strikes and an indica ation
that only real grievances will induce
the wage-earners to quit work here
after.
decentralization of capital and in
dustry. is seen in the establishing in
Normandy of textile industries to
replace those in the occupied terri
tory destroyed by the war This
movement has been greatly extended
by development of water power in the
regions of the Alps, and the center and
south of France. Industrial leaders say
that no particular region of France
hereafter will monopolize any industry
and declare that this scattering will
prove beneficial and result in a more
equable recovery of all parts of the
country.
Industrial Shift Planned.
Powerful financial groups are at
the head OF a movement to transfer
important industries from the coal
region to southeastern France where
water power soon will be available
Other groups are being formed to de-
velop manufacturing centers near tn e
coast so as to reduce the cost of
transporting raw materials. Indus
trial leaders say that this activity
on the part of capital. supported by
the recovery of labor from what has
been characterized as a wave of .1azi-
tion.
Instability of the exchange value
OF the franc is regarded as one of
the weakest points in French con-
Gitions. 1t is pointed out that
present high prices for supplies she
needs, and that is what the present
low value of the franc means The
Ffench government is now studying
complete renovation of her finan-
cial policy with view to making
such provisions to meet her obIira ,
tlons as will give greatest stability
Doth at home and abroad
New Financial Policy.
Details of the new financial nolicv
Sre as yet not disclosed, but it is un-
Serstood that 1t comprises, firstly. a
large interior loan to take nm all
short-term bonds and floating debt:
% anu secondly, important increases in
MI taxes TO bring the revenues I'D
10 the annual budget estimated to re-
ouire 0,000.000,000 to 25 200. .OOO. 900
francs.
II rs not expected that any internal
financial arrangement can exert more
than a moral influence on the value of
the franc abroad. and this may be said
TO be the object of the greatest
anxiety in official circles.
Prices for Materials Deterrent.
Ihe building trades do not show
any disposition to undertake import
= snl work while obliged to pay three
times the normal prices for materiaI.
The result is that reconstruction worL
rs being held up. although consider
Aoie progress is reported from soma
sections of the invaded regions. This
progress. although encouraging. is not
70 warrant the expectation that
France Will be enabled at an early do 70
70 resume expectations on a scale suf
hcient to materially effect the ex-
change rates
The French still are COUNTING IN
some sort of international arranpe-
ment that will increase the yaIue nj
the franc. VI
Asks Equal show for Money
with capital and labor both ready
TO do their Bit said RaouJ Peret
chairman of the appropriation com,
H.ittee OF the chamber of deputies. to
the Associated Press, ALI that re.
mains to enable us to get; firmly on
our feet is for the world to give onr
money something like an equal show
IN ali markets"
french observers regard it as ex
nely important that France shall
De enabled to purchase raw materials
on an equitable basis. They say this
IS SHOWN by the fact that before the
war three-fifths of her exnorted
GOODS were manufactured objects and
Inat inns proportion must be increas-
ca In the future to make up for the
loss of the market for wines and
Spirits in America and Russia which
formerly constituted the important
share of the total of French exports
Tourist Revenue Tagging.
Revenue from tourists. which was q
potent aid toward maintaining the
equili brium of the franc until the war
M rot yet given the expected help
uhdicdtionS are seen of an influx Ot
foreign visitors early in the new wear
but present disposition in official cir.
rlcs seems to be not to wait for its
deve iopment but to take measures tc
Improve all needs independently OF
This source of income.
EcoAomists and financiers who have
weighed all the elements of the situa
tlon admit that France still is in 2