The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-19
FRANCES DEFICIT
GROWING EACH DAY
$4,000, 100000 Franc Short
age Yearly Being Charged
Against Germany.
INITIATION is CONTINUED
Taxation Limit Reached-SO-
cialists Protest Against
Huge Military Bill.

Special Gable to THE New YORK HERALD.
Copyright, 1890, by THE New YORK HERALD.
New York Herald Bureau,
Paris, Oct. IS.
Despite the Herculean efforts started
by President Millerand and his Ministers
to improve somewhat the country's finan-
cial situation, France is going steadily
into the hole to the extent Of 22.o0O0oO,-
600 francs annually at the present rate
Of expenditure. This amount is exceeding
the revenue that France is raising largely
through continued imitation. but 1t is be-
ing charged on the books against Ger
many.
Thus the equilibrium in finance is sus-
tanned, but how good this steadily grow
ing account is with Germany, justified as
the bookkeeping may be by the literal
text of the treaty of Versailles, depends
entirely upon the settlement Of the repa-
-ations problem. On the basis of the ten
tative figure fixed at Boulogne and re-
iuctantly then agreed to by France, but
since avowed, France would not come out
even. Thus in a nutshell is the present
situation. revealed in the consideration
now being given to the new budget, and
changes with England regarding repara-
lions.
If the German debt on the French
books cannot be recovered except in
small part, France will be In bad con-
dition. it would seem, for even though
she increases production nightly she
cannot begin to produce enough to write
off much of the German debt represented
by the billions of francs that the Govern
ment Is advancing to the devastated
regions, for pensions &c. which the
treaty says shall be collected from Ger
many.
The loan just launched will help some
what depending largely upon the amount
CT new money it draws from the peas
ants stockings Subscriptions have been
pouring in in advance, but these repre-
cent largely convertible bonds. The last
loan proouced about 3.000.000,000 francs
in new money from 5000, 900, 900 francs
subscribed.
The Cabinet has practically completed
raring the budget, looping off 4,0o0,-
900, 900 francs from the estimates, but
at that the ordinary budget Is nearly
billion more than the last The budget
for extraordinary war expenses stands
at 20, 900, 000. 900 francs. which includes
00,000.000 put down as recoverable
from Germany.
Realizing that the limit has been
reached in taxation, the Cabinet has
formally decided to attempt no addi-
tional imposts, believing that the present
taxes will meet the ordinary budget.
The fact outstanding is that, two years
having elapsed since the war. expenses
are augmented instead of decreased, and
the Minister Of War is demanding many
more millions than last year.
This increase in war establishment
expenditures Is attacked by the Social
lists, who ask why France must keep up
this tremendous military establishment
in her present financial condition. main
tanning expensive military missions over
half the globe and an army of 100000.
OF course the answer Is the fear of Ger
many and the diminishing buying power
of the franc.
Admitting the seriousness of the situ-
alton. the budget commission and public
opinion can think of only one solution
Germany must be made to pay.