New-York tribune., 1919-12-28
Low Exchange Rate Still Is
Grave Factor TO Keep
Much Needed Money of
America From the Nation
Outlook Is Much Better
Recent Elections Caused III
creased Confidence and
Stabilizing of Opinion

PARIS, Dec. 27.-France will begin
the new year with far greater conf
dence than the last This is in spite
of formidable handicaps such as the
balance of trade running against her
at the monthly rate of about 1,500,-
100000 francs (S300,000, ,000), about so
per cent depreciation of the exchange
value of the franc and the consequent
difficulty 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 in
ternal politics, ended all danger of
revolutionary agitation for some time
to come and brought about better at
titude by capital and labor toward the
immense effort before France.
Money for Investments
Money is forthcoming for invest
n1ents in anything that promises sta
biflty. While investments in short
tern, treasury bonds are continuing at
the rate of nearly 2,00O,OO0,O0O francs
a month, there is plenty of money for
fn&4lstrial and commercial enterprises
and long-term loans The 1000 900 ,OOO
IAdAC ivan ~ picNI llHiltOidlc re-
sources for indemnifying victims of
the inv Vslon was overs ubscribed before
the off clal opening of the subscrip-
tons. Wportant banks and industrial
companie.S have lately increased their
capital to an aggregate of nearly 5OO,-
900, 100000 francs.
Transacto Us on the Paris bourse
which still ye confined to cash deals
have exceeded on certain days records
Of pre-war ira Ting when futures en-
tered largely into the totals The up-
ward movement ox.all industrials, which
began before tho signature of the
treaty at Versailles, skas been unchecked
by successive liquio'ations. This is re-
garded by keen otlVA Ayers here as a
sure sign of economic ecovery.
Labor Situation Easier
Employers say the lab or situation is
improved and that the |, st strikes de-
veloped symptoms that the workers
themselves were bes.omi ng weary of
long continued disturban ces of bust
ness, industry and transpoi tation. They
see tendency against frLvo lous strikes
and an indication that only real griev-
ances will induce the wage earners to
quit work hereafter.
Decentralization Of capital and in
dustry is seen in the estaipsA shllg in
Normandy of textile industrial to re-
place these in the occupied terra .ory de-
stroyed ~ the war. tt is mcycc7< IT has
Deen greatly extended by dcveln 0ment
OF water power in the region Or tn, Alps
and the center and south of Eaance.
industrial leaders say that nc par leu
lar region OF France hereafter Will
monopolize any industry, and deca ale
that this scattering viii prove bcnot-
clal and result in a more equable re
covery OF All parts OF the country.
fo"ertu' financial groups are at th e
bead OF q movement to transfer jnl
portant industries from the coal re-
glon to southeastern France, wlara
water power soon Will be available
Other groups are being formed to de-
velop manufacturing centers near the
coast, so as 90 reduce the cost of
transporting raw materials Indus
trial leaders aay that this activity on
the part Of capital. supported by the
recovery of labor from what has been
characterized as 4 fwaYc Of ")aziness." :"
gives q healthy tone TO the situation.
Exchange Still Week
instability Of the exchange value Of
the frame Is regarded as one OF the
weakest points in French conditions. 1t
is pointed out that France cannot DAY
twice over at present high prices for
supplies she needs, and that IS what
0ho present low value of the frame
means. The French government is now
studying complete renovation Of her
financial policy, with a view to making
such provisions to meet her obliga-
uons as viii give greatest stability
both at home and abroad.
Details OF the new financial nollcv
are as yet not disclosed but it is un-
derstood that 1t COMPRISES, first, a
large interior lean TO take up all short
term bonds and floating debt; and. sec
ond, important increase in al taxes
70 ornE the revenues up to the annual
budgct, estimated to require from 2O.-
00o,0uc, 600 to -. 600 100000 france. 1t
~ not cNpectea That any Internal hnan-
S'al arrangement can ,Ncrt more than
mora influence on the vaiue of the
franc abroad. and this may be said 10
De the object of the greatest anxiety
sr official circles.
The building trades do not show any
olspoSltlon to undertake important work
while Obliged to pay three times the
norma! prices for materials. The result
IS that reconstruction work is beinsr hold
up, although considerable progress is re-
ported for some sections of the invaded
regions. This progress. although cncour
aging, is not regarded by business men
as sufficient to warrant the expectation
that France will be enabled at an early
date to resume expectations on n scale
sulnclent 10 materially affect the eX-
change rates. The French still are
counting on some sort of international
arrangement that Will increase the value
of the franc
Ask for Fair Deal
"With capital and labor both ready to
do their bit" said Raoul Peret. chairman
of the appropriation committee of the
Chamber of Deputies, "all that remains
to enable us to get firmly on our feet is
for the world to give our money some
thing like an equal show in all mar
kets"
French observers regard it as ex-
trenely important that France shall be
enabled to purchase raw material on
an equitable basis. They say this is
shown by the fact that before the war
three-tifths of her exported goods were
manufactured objects and that this pro-
portion must be increased 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.
Revenue from tourists, which was
potent aid toward maintaining the
equilibrium of the franc until the war.
has not yet given the expected help. In
dications are seen of an influx of for
eign visitors early in the new year, hu,