Evening star., 1921-05-08
The Financial Condition of France

mere ndS DeeH pieluoid VI ilils'
understanding and uninformed discus
sion in the United States as to the
fina ncial problems of Europe arising
out Of the great war. No more ex-
cellcnt example of this type of loose
talk has presented itself than that
dealing with France. The public has
heard that France, on the verge Of
bankruptcy as result of her war ef-
fort. was quitting cold" that rather
than tax her people to meet her legiti-
mate expenses she proposed to force
Germany to meet them for her. We
have heard it stated that her taxes. in
percentage ofincome, are low in COM
parison with those of other nations.
We have heard that no whole hearted
effort is being made to reduce the over
expanded monetary circulation. And.
finally. we have been told that, unable
to meet her own running expenses, she
is making no adequate provision for
her foreign debt. All that is neces-
sary to refute, once and for all. these
and similar claims. is a recourse to
facts available to all.
The national debt of France is esti-
mated at 1893, ,O00, 900 gold francs,
and of this sum $4,000, ,0oo. 900 gold
francs is foreign debt. Against this
foreign debt stand foreign credits of
$4,000. .000, 900 francs, exclusive of the
10000. 600 900 francs owed her by Rus
sia. The French budget for the year
just passed totaled 1882, ,53S.415
francs, and was divided into two sec.
tions. OF these the first, entitled ''or-
dinary expenditures" amounted to
21,761 ,107,926 francs. and. including
as it did the sums set aside for the
service of the debt, was covered in full
by taxation. To do so the per capita
taxation reckoned in relation to the
entire population was raised consider
ably more than 100 per cent.
The second section of the general
budget, under the head of extraordi-
nary budget. provides the funds neces.
sary for the non-recurring expendi-
pensions recoverable under the trea-
ties Of peace from Germany and her
former allies. Germany is solemnly
pledged to meet those expenses. But
France, finding that for the present
that pledge is Of no more value than
others which Germany has made, and
knowing the necessity OF resuming
work in the devastated regions, Of con-
tinuins life to her war widows,
orphans and crippled soldiers, has
found it essential to raise the money
~ borrowing on long term and per-
petual notes. With justice and right
she proposes eventually to force Ger.
many to pay the sum necessary for
the redemption Of those notes.
The people Of France pay 1s per
cent Of their annual per capita income
to the state. The people Of England.
paying 2s per cent. alone pay more.
The rate in Germany is IL per cent, in
the United States per cent
These are the facts as to the fiscal
effort of France during 1920. knowing
them, who can say that that nation,
which SO gallantly bore the brunt of
German aggression in war, is not to.
day making an equally gallant effort
to set her house in order and to meet
the obligations which are hers. French
finances are today in an inflated con-
dition. But her program toward de-
fiation is sound and already under
way. The American people. watching
the progress toward the final compile
ton OF that program, with their minds
cleared OF ignorant or vicious mis-.
representations, will do so with sym.
pathy and admiration in their hearts.