New-York tribune., 1920-03-16
Give Us Time
ToPay, France
Pleads of u. S.
Millerand Says Fleeting
Misunderstanding Must
Not Be Allowed to Trouble
Friendship of Two Nations
Finances Are Explained
Tax Rate High as Possible,
Gold Shipments Dan.
sgerous, Asserts Premier

AN1o, March 16.--Premicr Mile
rand to-day put aside the German crisis
long enough to discuss the relations
between France and the United States
and the conditions Of international
credit. He said to a representative
of The Associated Press:
France and the United States must
continue the close friendship which
always has been maintained between
the two countries. No feeting misun-
derstandings must be allowed to trouble
their relations. To that end the sooner
misconceptions are dissipated the bet
ter.
without going into the purely po-
lltlcal questions, it appears to me an
opportune time to recall now to our
friend the United States that France
is not asking for charity The greater
part of the money France borrowed
abroad was spent in the common in
terest of all the civilized countries
a fact which might form the basis of
claim for special cons Iteration, but
oUSA IS IlOI our lDCeHtlOn.
I'VE don't request cancellation of
our debts. We only ask time to breathe
and to recover our strength after four
and half years Of exhausting war.
Our propositions are those which any
debtor would feel right in making in
the interest of both himself and his
CREDITOR"
Exchange Rates Ruinous
The Premier referred to the ruinous
fluctuations in the rate of exchange,
which he held would be aggravated
rather than palliated through meas
ures proposed to France by those not
taking sufficient account of interior
conditions.
"If France is obliged to meet its
obligations abroad a. present rates of
exchange she would be forced to pay
two and half times what she owes"
continued the Premier. Thus. after
spending for the common good 30,00O,-
100000 francs borrowed from her
friends she would have to pay 75,O0O,-
100000 francs as Frances premium to
these same friends. Of course, that is
not what they mean to require from
US.
1--WE have given our blood, we have
given our money. To ask US now to
give more than double our debt is an
anomaly that cannot fail to strike the
most impartial judges"
After mentioning the suggestion
lo L. ~.
could raise the value Of the franc by
lerand said that the question appeared
to be mperfectly understood by the
American people.
1--WE ask nothing better than in
creased exports. We must first, how
ever, manufac ture, and we can't make
the things for foreign trade until VIC
have factories in which to manufacture
them. Do our American friends lose
sight OF the extent Of the devastation
Of the richest nart Of our territory;
do they forget that we are still partly
to recuperate our wasted man power
ufacturing centers?
What War Cost France
The war cost us 100000 industrial
workers. 100000 of our buildings were
destroyed, regions were entirely ruined
which in 1913 gave us "a per cent of
our wool, 80 per cent of our linen
thread, 80 per cent of our minerals,
83 per cent of our pig iron, 70 per
cent of our sugar and 53 per cent of
our coal.
The war wasted our railroads to an
unimagnable extent. Thirty per cent
of our merchant feet was sunk, and
wheat production was diminished two
600 francs. These catastrophal changes
we're a blow to the very base of the
economic and financial situation of
France"
The French Premier then took up the
view of American financers who have
urged France to ship her gold against
al unfavorable trade balance He con-
tinued:
''If France were deprived of her gold
it would bring on financial crisis
coinciding with the period during which
the effects Of war would be unrepared.
1t would constitute perils Of another
order quite as great as those we were
under from 1914 to 1918
THE reproaches Of American fnan-
ciers that France has been too slow in
imposing taxes sufficient to balance the
budget are made without due consid-
Grafton of the extent to which the
paying power of the country has been
reduced, as shown by figures l have al
ready given.
Reduction in Treasury
Besides sapping our economic power,
the German invasion reduced the tteas-
ury resources 10 per cent. Also while
the United States modified about II
per cent of her men of an age to serve,
we sent to the colors 50 per cent Of all
our mobilizable men for an infinitely
longer period.
4 "The paralysis of business as we'll
as the prolonged absence of so many
taxpayers resulted in diminution
of % per cent in the yield of taxes in
1915, as compared with 1918. In 1916,
when it appeared no longer possible
to wait for the liberation of the invaded
districts to increase the tax revenues,
new taxes were imposed and old ones
increased, until during the present
year the yield of those taxes in force
will amount to 12,000,O00,0OO francs.
Further taxes now under discussion in
the Chamber of Deputies will increase
our revenue to 20,000,06O 900 francs,
or four times greater than the pre-
war total.
Gould France, impoverished in man
power, with her principal industries
wiped out, be asked to make greater
or speedier effort?''
In conclusion the French Premier