The Bridgeport times and evening farmer., 1919-12-27
FRANCE FACES NEW YEAR WITH ALL CONFIDENCE Bright Prospects Tn Spite of Poor Balance of Trade
 Outlook. ELECTIONS WILL
 BRING ABOUT
 INTERNAL PEACE Reports Indicate Brisk Trade Jn All Money
 Markets.


 Paris, Dec. 27-Frauce will be- gin the new year with far greater confidence than the last. This is in spite of formidable handicap such a. the balance of trade running against her at the rate Of about 800, 900. 0OG francs a month, about 50 per cent. depreciatjo of the exchange value of the franc and the consequent diff fculty of procuring raw materials and machines, urgently needed for re- construction.
 Frances renewed confidence Is de- rived directly from the result Of the recent elections. These are regarded here as having definitely stabilized internal politics, ended all danger 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 is forthcoming for invest ments in anything that promises sta bility. While investments in short term treasury bonds are continuing at the rate of nearly 2,0OO.O00.0O0 of francs a. month, there is plenty of money for industrial and commercial enterprises and long-terIu loans. The 4,O0O. .00O, ,O0O-franc loan to provide immediate resources for indemnifying victims of the invasion was oTer-sub- scribed before the official opening of the subscriptions. Important banks and industrial companies have lately increased their capital to an aggre- gate of nearly 5OO.0OO, ,OO0, 600 francs
 Transactions on the Paris bourse which still are confined to cash deals have exceeded on certain days records of pre-war trading when fu- lures entered largely into the totals The upward movement of all indus trials which began before the sigma ture of the treaty at Versailles has been unchecked by successive Iiquida- tions. This is regarded by keen ob- servers here as a sure sign of eco homie recovery.
 Employers say the labor situation is improved and that the last strikes developed symptoms that the work CTS themselves were becoming weary of long continued disturbances of business, industry and transportation. They see d tendency against frivolous strikes and an indication that only real grievances will induce the wage earners to quit work hereafter.
 Decentralization of capital and in dustry is seen in the establishing in Normandy Of textile industries to re- place those in the occupied terri tory destroyed by the war This movement has been greatly extended by development of waterpower in tho region of the Alps and the center and south of France.
 Industrial leaders say that no par ticular region of France hereafter will mOnopOlize any industry and de- clare that this scattering will prove beneficial and result in a more equabIe recovery of all parts of he country.
 Powerful groups are st the head of a movement to transfer import ant industries from the coal region to southeastern France where water power soon will be available Other groups are being formed to develop manufacturing centers near the coast so as to reduce the cost of transport ing raw materials. Industrial leaders say that this activity on the part of capital, supported by the recovery Of labor from what has been char acterized as a wave of "Iaziness,' gives a healthy tone to the sttua- tion.
 Instability of the exchange value of the franc is regarded as one of the weakest points in French conditions. It is pointed out that France cannot pay twice over at present high prices
 
 what the present low value of the franc means.
 The French government is now studying a complete renovation of her financial policy with a view to making such provisions 10 meet her obligations as will give greatest sta bility both at home and abroad.
 Details of the new financial policy are as yet not disclosed but it is un- derstood that it comprises, firstly, q large interior loan to take up all short-term bonds and floating debt; and. secondly, important increases in all faxes to bring the revenues up to the annual budget to require 2O,O00,- 900, 900 to 25,000, GOO, 900 francs. It is not expected that any internal fnan- cial 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.
 The building trades do net show any disposition to undertake import ant work while obliged to pay three times the normal prices for materials i The result is that reconstruction work is being held up, although con- siderable progress is reported from some sections of the invaded regions i This progress, although encouraging, i is not regarded by business men as sufficient to warrant the expectation 1 that France will be enabled at a 1 early date to resume exportations on l B scale sufficient to materially affect i the exchange rates. The French still | are counting on some sort of inter 1 national arrangement that will in 1 crease the value of the franc. |