The New York herald., 1921-07-10

being raised during the year to meet
public expenses.
TAX on incomes alone brought In
1900. 100000 francs last year compared
with 700, ,000, 900 the year of the armis-
tice. The budgets for last year and this
year were both burdened by the neces-
sty of meeting arrears of our war debts.
This coupled with the delay In arrang-
ing a solution of the German indemnities
weakened the apparent effects of our fl
nancial effort but now 1t Is hoped that
the German payments will enable us to
continue the work of rehabilitation for
which we have already advanced TO-
coo. 100000 from our own pockets.
IF we eliminate the account of the
devastated regions, it would be seen that
France to-day is in a better economic
situation than any of the belligerent ma
ti@ps This is generally recognized since
the fixing of the German annuities by
the London agreement.
These are the precise symptoms
which If taken into consideration with
the general economic possibilities of the
country warrant entire confidence for the
future. as well as the rapid expansion
of all our forces and resources"
M. Schneider. discussing the evidence
of German competition, admitted that
German industries are competing often
unfairly with the French producers
Especially are efforts being exerted to
capture the French electrical markets
for which the Germans were struggling
SO viciously by underbidding made pos
siple. owing to cheap labor and Govern
mcnt assistance when the war broke out
Electrical Development.
But this is only one of many indus
tries where competition Is affecting our
market NJ. Schneider added, "and espe-
cially is 1t interesting, as Frances future
welfare will depend largely upon the. de-
Felopment of her electrical resourcesP
The Schneider concerns are making
great preparations to meet the need of
electrical machinery by great develop
ments at Havre, in the Champagne, at
La Londe and near Toulon
Germany evidently wants the battle
to be fought to a finish now, when the
advantageous differences in exchange
and temporary superiority of production
owing to Frances ruined business would
enable her to regain at least some of
her lost ground.
"Undeniably, the essential cause of
this is the depreciation of the mark Ger
man manufacturers are paying far less
than the French for the coal materials
and for labor. A ton of fuel costs $50
marks but this in reality Is only fifty
francs A good German workman costs
perhaps fifty marks per diem, but that is
only eleven francs, while the French
workman of the same quality in the
electrical industry would be paid almost
twice as much.
"As matter of fact, the increased
cost of materials in Germany has not
kept pace with the decrease in the value
of German currency. This warrants
considerable criticism of the financial
and economic policy followed by the
Reichstag Government. The imperial
budget subventloned indirectly the whole
Of the German industries. The German
Government to-day is losing about 49,
000,000,000 n year by granting freight
reductions to manufacturers, and enor
nous sums are also being spent to pur-
chase foodstuffs to be sold at cheaper
rates to the population.
I'm other words the State is willing to
ruin itself, but the wealth ct the indi-
vidual Germans increases.
Undertaking French Motors.
"A few months ago the poege Com
pany of Chemnitz notified French firms
list for expectation. the German rates
no longer being valid. Since then Ger
man competition has increased daily and
is being felt especially In northern and
eastern France.
Recently II has appeared in the
region OF Lyons and Nantcs, with
wider and wider gulf separating the
prices asked by the German and French
producers. For example. the Allgemeine
~ iats4 al. % fc nfta
horsepower motors in Alsacs at so per
cent under the French average for SINH
lar material An equal price cut IL
shown in the dealings of the Krieger
firm OF Saarbruck.
Meanwhile, German ma nufacturers
have commenced TO reappear. only
thinly disguised, with several branches
in various parts of France. The
Allgemeine Elektricitats has a masked
branch at Paris and has started negou-
ations for another at Lyons. A Berlin
firm, May Levy. also is represented In
Paris and Siemens Company has an
active representative both In Paris and
Lyons.
Moreover, this German concurrence
does not adhere TO loyal business prin-
cples. The Chemntz firm OF Adler puts
out price lists In Swiss francs without
mentioning thai the wares are Of Ger
man OflKln. NNM flalH also OtltIth IT.
uuently have Deen constructed at Sarre,
where important stocks have been
placed. German agents have been in
structed to have their shipments 20 Al
sace-Lorraine forwarded through the
Sarre and 10 even has been possible
for some OF the German firms 10 have
offers forwarded through the Interalied
Rhineland Commission. replying upon
this seeming allied authority 10 gain the
confidence OF French buyers"
To Meet Competition.
NJ. Schneider insists. however. that
the French electrical industry has made
prodigious efforts to counter such COM
petition. Technical progress has made
II no longer necessary to rely upon any
German collaboration in French indus
tries and during the last four months
prices have been reduced more than 90
per cent.
In order to defeat German mauufac-
turers efforts special terms have been
made for Alsace-lorraine, where Ger
many had planned TO become supreme
az al costs
THE situation appeared TO be ex-
tremely serious last year, when French
production was hampered by the diminu-
tion of her coal resources" said Ma
Schneider. but the SPA coal accords