New-York tribune., 1919-07-17
What;s in a Franc
Paragraphs from speech delivered yesterday by Baron jacques
de NeuthSe, of the Bank of France the luncheon of
NJ. Maurice CasenaUe
NJ. Maurice CdsenaUe


killed.
/ hope you fully understand what mean
when say this; it is not to overrate the
share of France in the war, but we are dis
cussing an economic and financial problem
and | cannot do it if I do not refer to the
facts which the basis of it.
To understand the actual political condi-
tions in France, Americans must not over.
look several things:
First, that government can at any
time fall, If put in a minority in Congress-
! This means that our executive must in every
days action take into account the parlia-
mentary situation, and keep majority. That
makes it much more difficult than here.
! Second, we had the privilege and the re-
sponsblity at the time to have the
peace conference in Paris. This meant
among many other things the necessity of
enforcing exaggerated censorship on our
papers by courtesy for our guests, and in
consequence was underlying nervousness
IN public opinion, which was increased by the
TACT that every peace delegation was the
source of conflicting gossip.
Third, the very small, but noisy and we'll
organized minority of Bolsheviks and Radi-
calls in parliament affected our parliament
tary machine, which was weakened already
by the perspective of elections next Sep
tember
Fourth, the efforts and sufferings of France
for five years made it imperative for our
government to settle first of all the question
OF peace; let first readjustment of the
country and of the people take place. and
not ask new sacrifices of the people before
they had found themselves again.
The taxation problem has been affected by
the political problem which 1 have lust ex-
posed to YOU
Besides the problem is not exactly as easy
as it was in this country.
GU were able to impose comparatively
heavy taxation from the start because YOU
were in an economic situation in 1917 which
permitted it; because you have the advantage
OF having many large incomes which can
bear great share of the total taxation:
finally because, after all, heavy taxation here
is only temporary and therefore, the i'm
perfections are less burdensome, because re-
lief is in sight within few years.
With US it was out of the question during
the war to modify our fiscal system with the
Germans occupying part of territory
which yielded normally 25 per cent of our
total forces To-day, owing to the share in
the war which has been our lot, the excep-
tional taxes which have to be raised will
have to be paid by US for very long period
Therefore, to enable our people to accept
them, must be very careful in the enact
ment of the fiscal laws, and base them
on scientific survey of our resources
Besides, we have only very few large single
incomes; taxation, to be really productive
must reach the small people; that makes the
problem more difficult because you must
have everybody admit that he is taxed justly
The first thing for taxation is not taxes.
| Our government problem is to find taxable
income; taxing it afterward is easy, pro-
vided the political situation is Strengthened
OUT and this as | have shown you, will
happen next fall.
The real question, therefore, comes to
this: Will the taxable income in France be
large enough or, in other words, are
French people working?
Now, to this question | very emphatically
and positively answer yes They want to
work and they working. One of the
most remarkable things in France has been
the rehabilitation and to see everybody go
back to his old job. In certain cases we
have noticed some staeness in the pro-
ductvity of the workmen and employees, but
the good will remains and the efficiency
of the returned soldiers is already very
near normal.
On %hot horo ~ Ioto
per cent of our destroyed railroads recon-
structed and that our canal communica tions
in the north and the east of France are 80
per cent restored?
That all our automobile factories, which
had been turning out shells, artillery, trac-
tors, and SO on, are once more in full swing
building cars, with plenty of purchasers in
sight, and that deliveries have already
begun?
Our spinning and woollen industries are
ahead of our supply of raw materials, and
many factories in the devastated regions
have already reopened; some have oil paper
ceilings and canvas walls and old machin-
cry, but they work
l remember the emotion it caused me
when few months ago the first bills
drawn by a manufacturer of Lille his
customers against delivery of his first
goods. Now | am blase about it, because
so many have resumed work; but l would
wish that more people would these
efforts and these manifestations of will to
work, because they picture better the real
France than any oratorical efforts l might
make.
At the beginning of 1915 France was
short Of shells and Of artillery. In 1918 we
had an enormous supply for ourselves and
were even able to furnish our American
friends with all the war matcrial thew