The daily Alaska citizen., 1920-01-20

beneficial and result in more eQu- able recovery of all parts of the country.
 Powerful financial groups are at the head of movement 10 transfer important industries from the coal region to southeastern France where water-power soon will be available. Other groups are being formed to de veloped manufacturing centers near the coasts so as to reduce the cost of transporting raw material h. dustrial leaders say that this activity on the part of capital, supported by the recovery of labor from what has been characterized as a wave of "lazi- ness," gives a healthy tone to the situation.
 Instability of the exchanga value of the franc is regarded as one of ire weakest points in French cunditions It Is pointed out that France cannot pay twice over at present high prices for supplies she needs and that Is what the present low value of the franc The French government is now studying a complete renovation of her financial policy with a view to making such provisions to meet her obliga tions as will give greatest stability at home ani abroad
 Details of the new financial policy are as yet not disclosed but 1t is understood that 1t comprise firstly a 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 000,000000 to 25.0OD, ,00o,- 900 francB It 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 sald to be the object of the greatest anxiety In official circles.
 The building trades do not show any disposition to undertake important work while obliged to pay three times the normal prices for materials The result Is that reconstruction work is being held up. althO considerable progress ia reported from some sec lions of the invaded regions. This progress, altho encouraging, Is not regarded by business men as sufficient 10 warrant the expectations on a scale sufficient to materially effect the exchange rates. The French stn are counting on some sort of inter- national arrangement that will In crease the value of the franc.
 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 the Associated Press. "all that re- 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 ob- bervers regard 1t as extremely import ant that France shall be enabled to purchase raw materials on an equit- able basis. The say this is shown by the fact that before the war three ffths of her exported goods were man ufactured objects and that this pro portion must be increased In the fu- ture to make up for the loss of the market for wines and spirits in Ameri- ca and Russia which formerly consu- tuted the important share of the total of French exports.
 Revenue from tourists which was potent aid toward maintaining the equilibrium of the franc until the war has not yet given the expected help Indications are seen of an ln- fIu1 of foreign visitors early in the new year but present disposition in .of,cial circles seems to be not to wait for It's development but to take mea- sures to improve all needs indepen- dently of this source of income.
 Economists and financiers who have weighed all the elements of the sit uation admit that France still Is in a most difficult situation but see in dications of great improvement be- fore the end of another year.