New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 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 100000, 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
INDUSTRIAL 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 bscribed 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 $780,
900, 100000 francs.
Transacto Us on the Paris bourse
which still We 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 TERRI .orv de-
stroyed ~ the war. tt is mcycc7< IT has
Deen greatly extended by dcveln 0ment
OF water power in the region or thu Alps
and the center and south of laance
Industrial leaders say thai nc,nar lou
lar region Of r,anra haYao s4ar viii
monopolize any industry. and deA a,o
that this scattering viii prove bcnef-
cial and result in a more eotablc re
covery Of al parts OF the country
Powerful financial groups are at ia @
head of q movement to transfer i'm,
portant industries from the COIL re.
gion to southeastern Franre yr,aera
water power soon Will De available
Other groups are being formed 70 de-
velop manufacturinr centers nea, nc
coast. so as 20 reduce the cos Of
transporting raw materials Ind,e-
trial leaders sav IN, his nct;,.itw IN
the part Of capital. s.inuoyted NV tba
recovery of labor from what has been
characterized as Il fwayc Of ~lazinoss :"
gives q healthy tone TO the situation.
Excb,nro s,+;,, w.,
,,..ah,1,.,
.ho c. % ''e '%chahge value OF
On - iVff'iucu as ohe OF me
;s , rr;,t i0'u'S ~ rrS"ch CONDITIONS. IT
+ ~ 'l,.u o'' 1n"' rance cannot pay
Sma,I VE'' at present hiEn prices Tor
4Ir nrosont ia,'. f''." 'a'" VIM
means Tho E,o,,ol, - N
st,,A;,, 'e'i'. soNeinlle"O . no"
fnanc 'e " N0,i'pne.l renovation OF her
such ,,os,,.',>..,,' WIN q W" 70 MAJ x
tions as ,,i1, % ,',oeO nsi opiIea :
both at home and abroad.
DetalIS OF the new financial policy
S s as YET not dlSclostd but 1t is un-
ueis'ooo mat IL comprises. lrst, a
800 '"'V'i or lCnh 10 take up ALL short
ond i' '"m"S ava "oA''hE aeot; and sec
my Important increase IN I'll taxes
h ~ Tr','E ''e r. enues up to the annual
no "p; ooo' & mated to REQUIRE from 20
~ V 1't ~ ,-''VVV'VVV'oVo france 1t
oval ,,,.'.o,'o.., ''',, amy Internal man
u moral ,,,.,,.|,,... 'N" Ne'D more man
franz ahraaa "od V Oh 'ns N@iue OF me
be the ohirct &c I'''' ina! nc sag 10
ir Official rircles ei'"'es' anxiety
The BUILDING trados do VA. oS..
disposition 70 nndertaLo ;,,, nor s,'ow any
while Obliged TO INV thraa t t'.'e WI ~,
normal prices for mater;a1s rhI S .,,t
is that reconstruction worI ;s ho;, rV he's
up. although considerable nroor os"s "e.u
ported for some sections If ~ ,,,i'5
regions. This progress. althonob oroo''r
aging is not regarded bv business W.,
as sufficient to warrant the evnec,at; ;o.'
that France will be enabled al an esr),,
date to resume expectations on n Scala
sufficient to materially affect the ex~