The Washington herald., 1920-12-10
new FRENCHLOAN
IS 0VERREALIzED
BY HUGE AMOUNT
The Unofficial Estimates
Place Figures at Over
3O,OOO,0 900, 900 Francs.
TWICE FORMER LOAN
Appeal Met With Enthusiastic
Response on Part of the
French Public.

NEW YORK, Dec s-The Bankers
Trust Company, of New York. has
received a special cablegram from
its Paris correspondent giving un-
officially. but from the best avail
able figures, an estimate of the
loan. which places the subscriptions
at from 10000. .ooo. 900 to $4,000, ,0oO.-
900 francs
This amount is more than twice
!, the sum subscribed for the February
loan and greatly exceeds the amount
realized by any previous issue OF
government securities. In addition
to the enthusiastic response of the
French people to the loan appeal, 1t
Is reliably stated that several large
foreign banks have received SUBJ
scriptions exceeding by one-third to
one-half the subscriptions obtained
in February.
1t is unnecessary to inquire deeply
into the French financial situation
to realize the Importance of the
success of the loan to France. On
the basis of the 1920 budget~and
preliminary estimates for 1921. 1t
was calculated that the amount re-
quired to meet deficits in the extra
ordinary budgets of both years
(which include the amounts appro-
priated and contemplated against
payments regarded as recoverable
from Germany. would total $4,000
100000. The new loan has far ex-
ceeded this amount.
Cut I'm Budget Planned.
The success of the loan is to be
made all the more effective by re-
ductions in next years budget. 1t
is proposed to have no deficit in
1921. To this end a reduction of
ESQ, 100000 francs in the new es-
Inmates is contemplated.
An item of 5.49s. 200. 900 francs in
the 1921 extraordinary budget. rep
resenting proposed expenditures re-
garded as unrecoverable through
reparation payments from Germany,
pointed to a deficit. All but 2,S70,-
100000 francs of this item will, 1t
is proposed. be taken care of from
1sI receipts, liquidation of war
stocks and war profits tax. and the
balance is to be eliminated. as far
ss possible. by budget changes.
MnrsaI Comments.
In addressing the French Finance
Minister. NJ. Marsal. on this subject,
the Finance Commission of the
Chamber Of Deputies says:
The commission is resolved to
authorize loans. with the exception
of credits for necessary public
works. only against sums recover
able from Germany, and has decided
TO reduce to the lowest possible linn
its the estimated deficit of 2.S70,-
100000. The commission does not
wish any more than the government
to impose new taxes Only during
1921 will We be able to Judge the
fun effects Of the fiscal laws voted
last June. The burden imposed by
these laws is too heavy for US to
propose to increase il while the
country has not yet had available
all its means of work and savings
Against this deficit there is then
only one recourse, namely, econ
omy."
With this item eliminated or con-
siderably reduced. and proposed ad-
ditional economies effected in the
budget. it is then anticipated that
the present loan, IL returns at hand
Z reliably Indicate the total, will have
the effect not only of providing,
without additional taxation. the
funds required by the government
through next year. but also of pro-
viding for a considerable reduction
of fiduciary circulation and consoli-
dating large part of the States
floating debt.
In this respect II should be noted
that note circulation, which exceed
ed $4,000. 900, 900 francs on January.
10. shows a tendency this year to
remain stationary. 1t amounted to
3s.573.00O.00 francs on Novem-
ber IS. Within one month October
IS to December % the Bank of
France has been able to set aside
for amortization of the states debt
to the bank approximately $4,000, 900
francs This fund is expected to
reach at least SO9ooo'oOo francs dur