New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-05-21
France Revives
Rapidly, Says
Id. w. Morrow
Member of Morgan IL Go.
Tells Advertising Men
Country's Greatest Ham
dicap Was Loss Of Men
BecomingSelf-Supp ting
Import Balance Changed
TO Export Credit by Ca
pacity of French People

France, by reducing her external
debt more than $50o,o00,O0o since the
war, has made amazing strides toward
reconstruction, Dwight w. Morrow,
vice president of J. p. Morgan & Co.,
told the American Association of Ad-
vertising Agents at luncheon yester-
day at the Hotel McAlpin.
Mr.. Morrow recently returned from
a visit to Europe, where he studied
industrial conditions in France. Eng
land and Germany.
I'm making an estimate of the re-
covery of Europe from the devastation
of the war we are all inclined to Law
too much stress upon physical destruc-
tlon," said Mr.. Morrow. "The great
loss in Europe was the loss of lives.
In some countries also there was
great loss of organizing skill
III men can but retain their con
fidence in each other, their faith in
their governments, the property losses
viii soon be made up. 1t should be
true IN the future as it has been true
in the past that character and capacity
and skill in organization will be the
qualities which will determine the
worth Of individuals and of nations.
Frances Recovery Amazing
an the Franco Prussian War France
lost but little of physical nature. but
she lost heavily in her power of or
ganization. Revolution followed a
humiliating peace. In the recent war
France suffered heavy losses of phys
zeal nature, but she achieved great
gains in power of organization. Her
external debt to-day in gold francs
including the debt 20 the governments
Of Great Britain and the United States
lis something lass than seven times
the amount of the indemnity she paid
in less than three years after the
Franco-Prussian War.
"The differences between then and
now are not easily appraised, but it
may we'll be that France to-day is
better able-if she maintains the spirit
to do SOTO carry an external debt
Of 33,000,0o0,O00 of gold francs than
5,000,000,000 gold francs then.
"At all events, what France has ac-
complished in the payment of her ex-
ternal debt in the last six months is
little less than amazing. Her external
debt reached it's maximum point at the
end of September, 1920. At that time
it amounted to 35,328, 100000 francs At
the end of March, 1921, her total ex-
ternal debt amounted to 37,723 900, 900
francs, reduction OF over $500, 100000
gold francs, or something more than
100000 600
How was this amazing achievement
attained? 1t is not easy to answer.
The thousands of transactions that
make up international settlements can
not be followed by any single person.
Becoming Self-sustaining
at is probable that France has made
substantial sales of foreign-he Sc
curities; she has also made some
specie payments, and we know that
there has been a very remarkable i'm
provement in her foreign trade posi-
tion.
"The truth is that France is again
becoming a self-sustaining country
She is reducing her imports of food
stuffs; she is developing surplus Of
goods for export. In the calendar year
1919 Frances imports exceeded her ex-
ports by almost 24,000,000,000 francs,
In 1920 the import balance was about
13,000,000,000 francs. In the first three
months of 1921, however, this import
balance has been changed into small
export balance.
"This is the fundamental explanation
of the change in the French position.
This is the explanation of the rise in
French exchange. During the last
three months the people of France have
been doing more for the rest of the