Charlevoix county herald. (East Jordan, Mich.) 189?-1953, 1920-01-16
FRANCE HOPEFUL
FOR new YEAR
be0ins 1920 With Greater Conf
dence Than 1t Did
the Last.
DUE TO DEFEAT OF RADICALS
Elections Stabilize Internal Condi-
items, Though Fall Of Franc Is Still
Serious ProbIem-Study
Financial Policy.

Paris.-France began the new year
with far greater confidence 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, 100000 francs month,
about so per cent depreciation of the
exchange value of the franc and the
consequent difficulty of procuring raw
materials and machines urgently
needed for reconstruction.
Frances renewed confidence is de-
rived directly from the result Of the
recent elections. These are regarded
here as having definitely stabilized in
ternal politics, ended all danger OF
revolutionary agitation for some time
10 come and brought about a better at
titude by capital and labor toward the
immense effort before France.
Money is forthcoming for invest
nents in anything that promises stabil-
ity. While the investments In short
term treasury bonds are continuing at
the rate of nearly 2,000,0O00OO francs
q month, there is plenty of money for
industrial and commercial enterprises
and long-term loans. The 1000, 100000
franc loan to provide immediate
resources for indemnifying victims Of
the invasion was oversubscribed before
the Official opening of the subscrip-
lions. Important banks and indus
trial companies have lately increased
their capital to an aggregate of nearly
500, o00, 100000 francs.
Bio Trade on Bourse.
Transactions on the Paris bourse.
which still are confined to cash deals,
have exceeded on certain days records
of pre-war trading, when futures en-
tered largely into the totals. The up
ward movement of all industrials
which began before the signature of
the treaty at Versailles, has been I'M
checked by successive liquidations.
This is regarded by keen observers
here as a sure sign of economic re-
covery.
Employers say the labor situation is
improved and that the last strikes de-
veloped signs that the workers them
selves were becoming weary Of long
continued disturbances of business, in
dustry and transportation. They see
q tendency against frivolous strikes
and an indication that only real griev-
ances will induce the wage earners 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 water power In the region of
the Alps and the center and south of
France. Industrial leaders say that
no particular region of France here
after will monopolize any industry, and
declare that this scattering will prove
beneficial and result in more
equable recovery of all parts Of the
country.
To Transfer Industries.
Powerful financial groups are at the
head Of the movement to transfer i'm
portant industries from the coal re-
gion to southwestern France, where
water power 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 a wave of "laZiness,"
gives a healthy tone to the situa-
ton.
the franc is regarded as one of the
weakest points in French conditions.
1t 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 means. The French government
Is now studying a complete renovation
Of the financial policy with view to
making such provisions to meet obli-
cations as will give greatest stability,
both at home and abroad. Details OF
the new financial policy are as yet not
disclosed, but Ii is understood that IL
comprises large interior loan to take
up all short-term bonds and floating
debt. and important increases in all
taxes to bring the revenues up to the
annual budget, estimated to require
10000 100000 to $4,000, 100000 francs.
1t 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.