New-York tribune., 1921-12-05
Paris Finances
Again Reflect
Berlin Outlook
Uncertainty of Further Gold
Reparations Payments
Keeps French Situation
Tense; Relief Discussed
Municipal Loans Favored
National Treasury Cannot
Wait for Germany to Com
pletc Restoration i'm North
SDeciel caose TO Tho vriouas

Copyright. 1n2i. New York Tribune Inc.
PARIS. Dec. The financial situa.
tion III France still remains tense, be-
Ing dominated by the increasing un.
certainty OF German reparations nay.
ments IN gold, although this influence
is OF moral rather than of potential
significance. as the next six months
will be occupied in settling the priority
claims OF Belgium, and the Wiesbader
agreement soon will result in giving
France raw materials in excess oi
what she would have received through
literal Interpretation of the repara-
F.. tions schedules.
II she waited for Germany gradually
to restore the devastated regions il
certainly would be accomplished by
1850, but during this time the French
Treasury would be lacking the 80 pc,
cent OF revenue which represented the
taxable resources from what was for
merly the richest part of the country
The problem now being worked out is
designed to complete restoration bv
l92S through advances Of 1000 600, 900
! francs cash annually to property own
ers and industrial concerns whose
means of livelihood have been carried d
into Germany on destroyed
This money cannot be obtained
through bank note imitation, as it is
fully realized that increases in prices
and salaries soon increase budgetary
estimates. Further government loans
are out of the question at present, as
interest rates have reached 6.7 per
cent, while further taxation must wait
for 1922. when the trade crisis, it is
hoped, will be over
The alternative, WHICH is increasing
in popular favor, is to let the cities OF
the northern district make their own
bond issues. similar to those ioated by
Rheims and Ferdun under state ap-
proval. for the investor is willing to
give better terms to municipalities and
commures, which profit by the double
guaranty.
AS Frances share of the 26 per cent
German customs tax should amount to
at least 500,o00,Oo0 gold marks an
nually it should be possible to negotiate
bonds on this security next summer at
favorable terms with Allied indorse-
ment. The French debt now totals
237 600, 600, 600 francs, with interest re-
quirements of nearly 10000 ,000, 900, and
public opinion Is having the effect of
LAO ni"S SNotipuiy tiac DdciS VI AtlltliUI
and exterior policies.
For the first time since 1914 the
normal budget is lower than that of
the preceding year. standing at "a 1900,
100000, against 265Oo 900, 900
The treaty Of Angora results In the
recall of 10000 soldiers costing 10000
francs each, which will save the gov
ernment nearly billion xrancs next
year if demobilized, OF $50 900, 900
francs if kept in garrison in France.
The new railroad obligation saves
the government from the obligation OF
Teimbursing future deficits of the
roads, with out impairing the govern
ment's agreed right to possess them
in 1880 A joint board from the foul
lines has been given free hand to adj
just tariffs to the needs of fixed in.
come, which will be assured to holders
Of bonds and stocks.
Formerly the railroad stockh olders
divided the surplus earnings with the
government, while now the surplus
enters reserve fund to meet deficits
in bad times.
Prewar per cent railroad issues now
yield 81 per cent because OF the gov
ernment coupon tax and sell for about
265 francs. AS they will be redeemed
at 500 francs, their rate of income is
more than Z per cent as the average
reimbursement in 1945.
Six per cent bonds at 41O WELD 6 %
per cent and seem equally attractive.