Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-01-06
FRENCH HAVE
EXCESS OF COAL

IdrIS, Jan. O--FTaHce mas surplus
of coal large enough to supply all her
economic and domestic needs for
the next six months, it was stated
today by both governmental and
commercial officials. Contracts with
American coal companies for more
than $100,000,000 worth of coal have
been cancelled, these authorities
said, while the price of American
coal delivered at French ports has
fallen from s32 a ton to $3.50 within
the last two months.
The railway companies and all
public service concerns are literally
glutted with coal and the purchase
Of foreign coal has almost ceased
Because Of the s100,000,O0O worth of
American contracts the officials
think that about half will be renew
ed at a price of from $14 to SIS per
ton.
The French government probably
will have to bear the loss incurred by
overstocked French companies
through the reduction in the price, it
is estimated that the American COM
panies will have lost about $4,000
900 in contracts when the agreements
have been readjusted.
The government today announced
a reduction in the price of coal
ranging from 70 to Is francs per ton
during January, the government re-
imbursing the various departments
for the losses sustained through SELL
ing at the new price coal purchased
at the maximum price. The officials
of the coal consider it not I'M
likely that the situation will result
in reduction of the working hours
of the miners.
French coal importers, explaining
the situation to The Associated
Press said it was due to three elc-
ments-German fulfillment of the
Spa agreement, nation wide curtail-
ment of industry due to depression
and the unusual spring like weather
prevailing during the period when
the consumption of coal for heating
purposes is greatest. The importers
believe that there is little chance of
improvement in the economic situa-
ton for four or six months, during
which time the importation of coal
tually discontinued.
An example of how the demand has
practically ended is to be found in the
fact that 5000 tons of American wool
which arrived at Havre within the
last week was sold at auction for 10
francs ton because no direct buyer
could be found. The sale price was
less than sufficient to pay the freight.
English coal prices have also suf-
fered, and English coal, Is now offered
at 20 shillings, a decrease of more
than % per cent.
1t has been suggested that France
will agree to a temporary reduction
in the amount of coal to be delivered
under the impending renewal of the
Spa agreement,
Because of surplus of more than
100000 tons of coal in Paris it has
been decided to light the city on a
pre-war basis and the boulevards and
principal streets will once more as
sumo their old brilliancy.
Another effect has been the issu-
ance of an order permitting all res
taurants and cafes to remain open
until l o'clock in the morning.
Officials of the French National Coal
Bureau declared that the manner in
which Germany has lived up to the
Spa coal agreement by delivering vir-
tually all the coal demanded, came as
a big surprise to the French govern
ment.
In the belief that Germany would
not fulfill the terms. France encour-
aged her import firms to purchase all
the Goa, they could. while the govern
ment itself bought heavily in the
United States and England. In con-
sequence there are at the present
time from 100000 to $4,000, 900 tons
Of coal in France.