Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-10-24
FRANCE PLANNING
BOND SALE IN i. S.
Baron du Marais Tells How
America May Aid in
Reconstruction
BELGIUM REQUESTS CREDIT
By a stag Correspondent

billion one hundred million dollars, OK
ceeding her best normal tax return by
one billion one hundred fifty million
dollars.
To make UP the difference. she will
have to increase her taxes by 30 per
cent.
And yet "victory gives her renewed
force"
'.'The future opens up radiant before
her In this rejuvenated world wherein
she is determined to retain her place.
She still possesses her soft skies. her
fertile soil and her valiant people.
Thus Baron du Marais, vice pres
ident of the French mission and dircc.
tor of the famous "Credit Lyonais.'
boldly faced the present and confidently
predicted the future of his country,
speaking at the morning session of the
international trade conference at the
Million Dollar Pier.
Baron du Marais, before an audience
of 5000 American business men and
the representatives of European com
merce and manufacture. entered into
lengthy exposition Of French fuanccs.
He built his optimistic plan of rcstora-
tion and new growth at home on
foundation of American financial aid
He proposed. as a plan acceptable to
France for the financing of her vast
projects. the issuance of French securi-
ties on the American money market
French Securities on u. S. Market
"During the war" he said. "crcdits
were obtained in the form of loans from
government to government. 1t is not
up to us to say whether it would not
be wise to employ similar methods for
limited quantities in specific cases, as,
for instance, in supplying France with
foodstuffs and raw materials, which
would be imported under the control
Of the French Government during the
period of reconstruction.
fTo issue French securities on the
American market would be the best
method, beyond all doubt. of providing
France with the means of payment she
requires. These securities could be
issued either straight to the public Or
through the intermediary Of American
corporations that could issue their own
bonds against foreign securities which
they could keep as collateral
Baron du Marais explained that the
interest on the French public debt would
come to $4,000, ,0Q0.0 900 annually. Civ
ilian expenditures for 1920, he put at
5000. 900, ,000 military and naval ex
penditures at S400, ZOO, 600; pensions at
$500 900 900. ..
1920 Resources Increasing
Resources of 1910 he estimated at So.
000, ,000. 900. For 1920 he added to this
sum S400, ZOO, 900 as the share of the
devastated areas, based on a prewar
return; 5000 900 900 as the share of
Alsace- Lorraine; $50 900 900 from
better collection of taxes, with the de-
mobilization from military service of
, the tax collectors, and an increase.
direct and indirect, of $50, 900 900 from
increased railroad tariffs
The French know that they have a
giant task before them to NIKE good
administration which must be faced
next year. Its, successful performance,
Baron du Marois explained, depends on
these factors:
First. The rapid reconstruction of
the devastated regions of France.
Second. The resumption of activity
in all the manufacturing plants of
France, based upon their being sup
piled with sufficient raw materials"
U. S. Aid Is Essential
Because Germany cannot be expected
to pay its indemnities TO France in the
Immediate future, Baron du Marais OK
planned, the aid of the United States
in the matter of credits is essential.
During the war, credits were OBJ
tanned in the form of loans from gov
ernment to government
ITO issue French securities on the
American market would be the best
method, beyond all doubt, of providing
France with the means OF payment she
requires.
Moreover, you cannot get away from
the fact that, for country in which
exports exceed imports by huge diff
ference, it is absolutely necessary to
make foreign investments,
"A country in such position cannot
insist upon receiving gold indefinitely
from its foreign customers. Such an
+ influx of gold would become useless as
soon as its gold reserve would exceed thu
needs of its trade.
During the war, American capita
kept piling up, so that many economist
and financiers are of the opinion tha
Americans could easily invest yearl!
from one to two billion dollars abroad
/ share this opinion
In conclusion Baron du Marais said
France is confident that America
who comes out of the struggle nor
powerful, more united and wealthie
than ever, will stand by her side. Th
most severely stricken of all, she must
time, devote all her energy to healing
her wounds; but during this time sh
trusts that America will supply he
with the raw materials and the equip
ment she requires for immediate re
cuperation."
Asks Credit for Belgium
Albert Edward Jansen, member q
the Belgian mission. professor at tn
University of Louvain ana director G
the National Bank of Belgium, told tn
conference that money is abundant au
cheap in his country, with a preseI
discount rate of only 3la per cent.
He went into a lengthy exposition {
the country's financial state, explain
ing financial methods of the pre-wa
days, the financial damage done by ii
Germans in their occupation of Bel
gium, and the country's present ar
rangements TO recover.
The revival Of manufactures in Be
gium and especially the reopening
the important Belgian coal mines, sa
NJ. Jansen, have enabled the Belgian
TO reduce Che rate of exchange wit
France. Belgian mines are produciI
SO per cent of normal
In spite of this improved iutern
condition, the speaker said the aGver
rate of exchange between Belgium al
fhe United States continues, Rmoun
ing to 20 per cent at present Ser Il
VI normal rate. "
United States Must Lend to Europe
"This is equal TO 10 per cent ey
pert tax which should be imposed
the United States on exports to n
country. We are all interested. yC