New Britain herald., 1919-12-27
FRANCE STARTS NEW
 YEAR FULL OF HOPE
In Spite Of Her Great Handicaps,
 Success Is Assured

Paris, Dec 21.---Francc will begin the new year with far greater conf1- cence than the last, This is in spite of formidable handicaps such as the balance of trade running against them at the rate of about 1,50O, O,O0O,OOO francs a mo onth, about 50 per cent. de- preciution of the exchange value of tho franc and the consequent difficulty of procuring raw materials and machln- cry, urgently needed for reconstruc. ton. .-
 Frances renewed confidence is de- rived directly from the result of tho 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.
 Loans Easily Secured.
 Money is forthcoming for invest ments in anything that promises sta- hility. While Investments in short term treasury bonds are continuing at the rate of nearly 2,000,0 0,00o.000 of francs a month, there is plenty of money for industrial and commercial enterprises and long term loans. The 4,000, 900 franc loan to provide i'm mediate resources for indemnifying g victims of the invasion wos over-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 100000. 100000 francs.
 Transactions of the Paris bourse which still are confined to cash deals have exceeded on certain days records of prc-War trading when futures enter ed largely into the totals. The up- ward movement of all industrials which began before the signature of tEc treaty at Versailles has been un- checked by successive liquidations. This is regarded by keen observers here aus sure sign of economic recov- cry.
 - -" .m Labor Is Better.
 Employers say the labor situation is improved and that the last strikes de- vcloped symptoms that the workers themselves were becoming weary of long continued disturbances of busi- ness industry and transportation. They see a tendency against frivolous strikes and an indication that only real grievances will induce the wage
 
 Decentralization of capital and in dustry is seen in the establishing in Normandy of textile industries to re- place those in the occupied territory destroyed by the war. This move ment has been greatly extended by re- velopment of waterpower in the re- zion of the Alps and the center and south Of France. Industrial leaders
 
 France hereafter will monopolize any industry and declare that this scatter ing will prove beneficial and result in a more equitable recovery of all parts , of the country.
 Manufacturing Conditions.
 Powerful financial groups are at the head of a movem ent to transfer inn portant industries from the coal re- zion to southeastern France where waterpower soon will be available. Other groups are being formed to de- velop manufacturing centers near the coast so as to reduce the cost of trans porting raw materials. Industrial leaders say that this activity on the part of capital, supported by the re- covery of labor from what has been characterized as q wave of "laziness", gives healthy tone to the situation.
 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 for supplies she needs and that is what the present low value of the franc means. The French govern ment Is now studying complete ren- ovation of her financial policy with q view to making such provisions to meet her obligations as will give greatest stability both at home and abroad.
 Money Policy Not Known.
 Details of the new financial policy are as yet not disclosed but it is un- derstood that 1t comprises, firstly, a large interior loan to take up all short term bonds and floating debt; and secondly. important increases ill all taxes to bring the revenues up to the annual budget estimated to re- i quire 20,000, ,0O0 to $25,OOO.OOO,OOO francs It is not expected that any | internal financial arrangement can ex- ert more than moral influence on the 1 value of the franc abroad and this | may be said to be the object of the 1 greatest anxiety in official circles. The building trades do not show any disposition to undertake import ant work whilo obliged to pay three times the normal prices for materials The result is that reconstruction work ix.I }1nr hnII ,..N, i