The New York herald., 1921-11-28
FINANCES IN FRANCE
BUOYED BY DEPUTIES
Rejection Of Capital Tax and
Initiation Viewed as For
ward Step.
GERMAN BLUFF CHARGED
Plea of Bankruptcy to Escape
Paying Reparations Not
Needed in Paris.
GERMAN BLUFF CHARGED

Special Cable to THE New YORK IInxup.
Copyright, 1891, BY TEn NEW York HInALD.
New York Herald Bureau,
Paris, Nov. p.
The outstanding feature OF last weelS'0
poiit!co- financial developments undoubt-
edly was the rejection by tho Chamber
OF Deputies OF any tendency either 70
impose capital tax or to increase In
aation as long as the Government
pledges itself 10 collect Germany's pay
nents as they fall do and to exert a
policy Of strictest economy.
While the Chambers interpretation
OF frances necessity Is generally com
mende6 in financial circles it Is seen as
bringing the nation one step nearer the
financial Rubicon. on tho successful
crossing OF which depends Frances
chance of attaining the long awaited
economic. financial and commercial
restoration.
The bringing In Of what Is due from,
Germany promises TO be the Govern
ments hardest problem, and it Is al
ready apparent that conflict must be
eXpected as to the methods to be used.
although the biggest fnanciers in Paris
insist that the only reasonable solution
still consists in placing Germany under
tho control of an allied debt com
mission. The collecting OF a consider
able portion II merchandise payments
Is comparatiy easy under the Wies-
baden accord, but the reaching OF
Germany's actual finances will be an
entirely different problem and will proba-
by require allied supervision of Ger
Elanys Bureau of Expectation Licenses.
with levy on tho whole or part OF the
foreign securities corresponding to Ger
manys hold on foreign markets.
The question whether it is possible to
mobilize Germany's reparation bonds
also is being revived, but the Bourse
does not see much hope along this line
owing to the impossibility OF obtaining
tho necessary guarantees as to Ger
manys future conduct. Last week the
Rerae EoopoDtiquc Fii,onoiero insisted
that tutelage alone was practicable and
that France must be prepared to act
alone IL the Allies refuse TO collaborate
with her.
One thing is certain. no grea. activity
in any department of the Bourse can
be expected until after the January Is
maturity shows how far Germany's
bankruptcy bluff win be carried. This
hesitance is not due to any interior
financial difficulties, as the quotations In
all branches maintain exceptional
strength in conditions which generally
would have resulted in shaking financial
firms to their very foundations.
Operations last week were largely con-
70 I.t
Gals. with some evidence that Russians
will demand early attention. The news
from Berlin, New York and London that
the fnanciers OF these three capitals
actually intend to aid restoration under
Soviet guidance caused q 1utteriug in q
small circle OF French industrialists who
have large interests in Russian manu-
factories. and II is likely that O large
number or quotations which hitherto
were impossible viii be restored to the
French list early next year.
Among these Is the Societe Usines
Franco Eusses. which has been unable
to strike balance sheet since 1917. Its
properties in Russia have all bean
nationalized. but are now known not TO
have been damaged. The companies are
still In the possession of large supplies
OF raw materials.
The weekly report OF the Bank of
france shows an Improvement, with o.
decrease in note circulation OF 3S2.O00.-
900 francs and slight increase in both
gold and silver reserves. The Govern
rnent is partly responsible for this hay-
ing paid back 100. 900. 900 francs during
the week.
The discount rate remains unchanged.
with money abundant for promotions
and liquidations.