New-York tribune., 1921-12-12
France Adopts
German Plans
To Get Trade
Sends Agents TO Near East to
Distribute Information.
Instead of Depending
ON Sentim ent Alone
Situation Grows Brighter
Government to Permit In
dustries to Obtain Credit;
Exchange Big Handicap
specsGl Cable to The Tribune

Copyright, 1921, New York Tribune Inc.
PARlS, Dec. 1.-THE French situa-
tion has undergone general improve
ment during the week as shown in
the rise of securities and foreign ex-
change on the Bourse 1t is understood
that the government will abstain for
several months from further demands
on credit and allow q breathing spell,
permitting monthly national economies
of 1900 100000 francs to provide work
ing capital for the great industries, as
we'll as to cause drop in interest
rates.
This policy, it is believed, will al
low q consolidation of the floating
debt OF. favorable terms. Already the
coal mining industry has issued g.
600 900 001-franc per cent tax exempt
loan Jointly guaranteed. This was fol-
lowed by a 100000 ,ooo-franc loan by
Creusot's and forty OF the strongest
steel companies in France on similar
conditions.
idly by like der-&ss for credit by au-
tomobile companies, railroads and 9TH
er organizations of national Importance,
thus assuring their safe passage
through trade perils. This plan should
stimulate confidence and recrudes-
cence of buying power.
. Although the interior situation has
been steadily improving lately, the
handicap of unequally deprecated ex-
changes has been upsetting the mechan-
ism of Frances external trade rela-
tons
Leader Deschamps of the Chamber Of
Deputies has introduced the ingenious
theory that the franc should be sta
bilized for several months at the pres
ent level of thirteen to the dollar and
be maintained through conversion
fund, as practiced in Brazil and Argen-
tina.
As the economic situation returns
tc normal and finances are improved
with a reduction of the tiduciary cir
would gradually be brought nearer to
par. This would remove the deterrent
on trade resulting from the present
monthly variations OF prices, which
often exceed Is per cent, while in deal
ings with the smaller countries such
as Serbia they are often much larger
France is just beginning to appre-
ciate the responsibilities of the meta
morphosis from a sufficient, un-
ambitious republic to the new role of
the predominant power Of Continental
Europe. Poland, Rumania and the Bal
kan states are anxious for close eco
France, and exchange stability is the
first requisite for the development of
permanent trade
Before the war France invested
S500000,0 900 annually in foreign coun-
tries, but commerce was not encour-
aged by the government, as public
opinion felt that economic strength
should be kept at home to resist future
German invasion.
1t is encouraging. therefore, to find
trade propaganda, formerly the weak
point, now being developed to q high
degree through societies such as the
Fra Oriental, which brings business
Interests from eastern Europe closer in
touch with those at home.
Trade experts are being sent to all
points in the Near East to distribute
advertisements, folders and other in
formation about French products.
1t is new idea for France not to
rely on sentiment and friendship alone,
but to follow the German method Of
Following up markets and establishing
close personal contact in foreign
cortarc