Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-12-28
F RANCE LOOKS To
Ne VI YEAR WITH
+. GREATEST HOPE
fsaoss;:a2ns Give Conf.
denCe b, %Mernment's Sta
bility; Balance of Trade Is
Disturbing Element.

Paris. Dec 27.--Franee will begin
the new year with far greater conf.
I dence than the last This Is in spite
of formidable handicaps such as the
balance of trade running against her
at the rate OF about 1900, ,O0O, 900
i francs a month, about so per cent de-
jpreciation of the exchange value OF
the frame and the consequent diff
Guilty of procuring raw materials and
/ machines, urgently needed for recon-
Struction.
i Frances renewed confidence il de-
! rived directly from the result of the
recent elections. These are regarded
here as having definitely stabilized
/ internal politics, ended all danger OF
/ to come and brought about a better
4 attitude by capital and labor toward
i the immense effort before France.
| Money is forthcoming for invest
/ ments In anything that promises sta
| bility. While investments in short
term treasury bonds are continuing
at the rate OF nearly 1000. .000, 900 OF
| francs month there Is plenty OF
money for industrial and commercial
| enterprises and long-term loans. The
! 1000, 900, 000-franc loan TO provide
immediate resources for indemnifying
victims of the invasion was oversub-
| scribed before the official opening OF
1.-THE. subscription, Important banks
Increased their capital to an aggre-
gate OF nearly 500, ,O0O, 900. 600 francs.
J Bourse Transactions Large.
| Transactions on the Paris bourse
which still are confined to cash deals
have exceeded on certain days records
| Of pre-war trading when future enter
ed largely into the totals The up
ward movement Of all industrials
which began before the signature OF
the treaty at Versailles has been nm
! nhpHkn1 n Inv fnn "a
! This is regarded by keen observers
| here as sure sign of economic re-
eovery.
| Employers say the labor situation
is improved and that the last strikes
| developed symptoms that the work
ers themselves were becoming weary
| of long continued disturbances of
business, industry and transportation.
They see tendency against frivol-
| Gus strikes and an indication that on
| ly real grievances Will induce the
wage learners to quit work hereafter.
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 movement
| has been greatly extended by develop
! ment of waterpower IN the region OF
| the Alps and the center and south Of
| France. Industrial leaders say that
lno particular reglona OF France here
after will monopuli2e any industry
| and declare that this scattering wall
| prove beneficial and result in more
equable recovery of all parts of the
country.
Water Power To Help.
| Powerful financial groups are az
| the head of movement to transfer
| important industries from the coal
region 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
| transporting raw materials. Indus
trial leaders say that this activity on
the part OF capital, supported by the
recovery of labor from what has
been characterized as q wave OF
| 'lazlness," 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,
1t is pointed ont that France cannot
pay twice over at present high prices
for supplies she needs and that Is
franc means. The French govern
ment Is now studying q complete
renovation of her financial policy with
a view to making provisions to meet
her obligations as will give greatest
stability both at home and abroad.
New Financial Policy.
Details of the new financial policy
are as yet not disclosed, but II Is un-
derstood that II comprises, firstly,
large interior loan TO take up all
short-term bonds and floating debt;
and secondly. important increases In
all taxes to bring the revenues up to
the annual budget estimated to re-
quire 10000 100000 to 1000, 100000
francs II Is not expected that any
internal financial arrangement can
exert more than moral influence on
the value of the franc abroad and this
may be said to be the object of the
greatest anxiety in official circles
The building trades do not show
any disposition TO undertake Import
ant work while obliged to pay three
times the normal prices for materials.
The result Is that reconstruction
work Is being held up, although con-
siderable progress Is reported from
some sections of the invaded regions.
This progress. although encouraging.
IL not regarded by business men as
sufficient to warrant the expectation
that France will be enabled at an
early date to resume expectations on
a scale sufficient to materially effect
the exchange rates. The French still
are counting on some sort of inter-
national arrangement that will in
crease the value of the franc.
Harmony Expected,
with capital and labor both ready
to do their bit" said Raoul Peret,
chairman of the appropriation COM
mittee of the chamber OF deputies, to
tHH ASSOCldltu fItSS, dlt Lf1dt
mains to enable US to get firmly on
our feet is for the world to give our
money something like an equal show
in all markets" French observers
regard it as extremely important that
France shall he enabled to purchase
raw materials on an equitable basis.
They say this Is shown by the fact
that before the war theee-fifths OF
her exported goods were manufact-
ured objects and that this proposition
must be increased in the future to
make up for the loss of the market
for wines and spirits in America and
Russia, which formerly constituted
the important share of the total of
French exports.
Revenue from tourists which was
a potent aid toward maintaining the
equilibrium of the franc until the war
has not yet given the expected help.
Indications are seen of an influx of
foreign visitors early In the new year
but present disposition in official
circles seems to be not to wait for
its development but TO take meas
ures to improve all needs independ-
emily of this SURGE of income.
Economists and financiers who
have weighed all the elements Of the
situation admit that France still is In
a most difficult situation, but see In
dications of great Improvement before
the end of another year.
->------- +
Labor Leader Sentenced.
winnipeg. Man.. Dec. 27.-Sentence