The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-25

result from the organization of the ranks
OF tax collectors. which were so depleted
by mobilization as to make II impossible
for those who remained to meet their
overwhelmed duties, which included the
payment OF allotments and other gratui-
ties to the families of soldiers.
The Increase In railroad tariff. which
has become an absolute necessity, will
bring In from net earnings and a de-
crease of guaranteed interest paid by
the State, about $3.50, 900, 900, making a
total increase of $3.50, 900, 900, which
raises existing taxes as they now stand
to $3.50, 000, 900.
To I'LL the gap between this figure
and our expenditure Of $4,10O,000, 900
which include military pensions (al-
though these are really a part of the
Serman Indemnity an increase of 30
per cent. above the present taxes will be
sufhcient. Undoubtedly this increase is
large but need not be feared when we
consider what the people Of France have
already achieved. You may therefore
be assured. gentlemen. that the public
finances Of France are in such shape as
10 make US feel absolutely secure about
the balancing of our budget and the re-
covery Of our country.
AS to the debt of France, which
reached $500, 0o0, 900 before the war. II
has now mounted to $40, 000, 000. 900. This
figure might appear dlsquieting IL It were
not for the fact that our foreign debt
constitutes but small parl OF It,
Lamedly. $4,000, 100000. Moreover, we
can oppose to this foreign debt the still
larger amount that Is owed France by
Eastern and Central Europe. France
cannot realize these credits to-day, but
Will undoubtedly be able to do SO in the
future
1t must be emphasized, however,
that the realization OF this budget de-
ponds upon the following factors: The
rapid restoration of the devastated re-
gions OF France and the resumption OF
activity in all the manufacturing plants
Of France, based upon their being sup
piled with sufficient amount of raw
materials.
France Needs Food.
France requires additional food prod
ucts for her people and raw mater lals
for her plants As a result of the mcbi-
lizafion of the chief part of her popuhla-
ton. OF the hardships brought on by tie
war and, to cap 1t ALL of the unfavora bA,
weather conditions. crops In France DUR
ing 1919 were short 1t Nill therefore
large quantities of foodstuffs Compe-
tent commissions have estimated impor-
tations of food at about $3.50. 900, 900.
but these imports will not come entirely
from America
The rise in the cost of raw materials
and the Increase in ocean freight rates
have already imposed a heavy burden
upon France. The rise in exchange. that
has taken on altogether extraordinary
proportions within the last few months.
threatens to make the cost OF material
delivered in France almost prohibitive.
We are obliged TO face an increase OF
the dollar. which IL particularly hard on
France. who has yet to import part OF
the foodstufrs she requires to feed her
1t falls heavily upon ex-
porters also. as you know.
I'VE must be careful to avoid carry
Ing to our neighbors the germ Of inha-
ton. from which the country in which
has deprecated almost always
suffers. The danger lies In making gen.
eral that rise in the cost of living which
causes endless suffering among all peo-
pies What we must do to improve the
exchange is. first, to improve the internal
economic conditions of the country: sec
ond, to procure means of payment
through appropriate financial measures.
That is one OF the chief problems that
onfront the new French Parliament
{ At will be elected soon"
\ discussing the demands of labor the
an N said:
'.EN cry increase in wages that does
OF ca rry with It a corresponding in
-ease IN productioiS raises the cost of
wing. It is but a deceptive phantom
vhen eveA,v one is rought TO the reali-
alton of tins point Il will mean that the
hief part OF econo mic difficulties has
cen solved, On at ! east lessened, and
nat an important ste ; forward has been
AIKEN toward social togress."