Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-30
By LOUIS L. KLOTZ,

Az Az AAAO4 A1
several Times Finance Minister Of
France.
fNote-This is the second Of two articles or
Frances economic future written by this emf
nent French fnancier.)
Cross-Atantic Service to The Star:
PARIS, January 10.-The loan which
the French government has just nego-
sfiated with so much success did not
produce enough, nevertheless, to take
care of more than one-fifth Of the ex-
peRses Of frances extraordinary budget
for 1921, which covers temporary ex-
penses brought about as a direct result
of the war. But it must be remembered
that the ordinary budget, providing for
all permanent expenses. civil and mill
tary, amounting to 2o,751 millions of
francs. now is balanced by income. For
the first time since the war began,
France, in SO far as her ordinary ex-
penses and receipts go. is living within
her income. This is a tremendous ac-
complishment.
mo other country Of the world" the
British chancellor of the exchequer has
said, has accomplished in such a short
time comparable result
Must Repair War Damage.
II it were not that France must ex-
pend large sums to repair war damage
and restore her industry she would be
.out of financial difficulty even now. She
mas been able to raise by popular loan
sufficient. as have said, to cover one
s1ifth Of her projected expenditures for
reconstruction in 1921. The other four
fnfths. according to the terms of the
Versailles treaty. should be paid by Ger
many. But Germany has not paid and
we cannot wait We must begin this
vital work Of restoring our ruined de-
APARTMENTS. The distress of our ma
ttionals and the interest Of the country
demand immediate relief for the north
and east For the present France is
which total % billion francs by credits
rat home and abroad. This is for her a
sheavy burden. But it is money Dor
Eowed for investment which has all our
lTecuperative powers behind it and it
Sshould not be considered as an evidence
of financial instability
The establishment Of a regular bud
get although it is a capital symptom
OF public order and Of the health of
public finance. would be merely a vain
gesture il it did not rest on the solid
base Of reality. The budget is but q
sign. the value Of which depends upon
Its sincerity; its balance and equilfb-
rum, which repose upon expected re-
4 cetpts. are maintained only If these
expected receipts are established.
vasAOAs 4uuoO oPliiulSIH vi cAASEeIA~
ton. and II the general wealth Of the
country permits it to respond to the
appeal to its contributive force.
Taxes Show Up Well.
Our methods of evaluating receipts,
based on the yields of previous years
and amended only for sound reasons
after careful study are essentially
for 1918 and 1920 were larger than
they had been evaluated for the pur-
pose Of the budget. For the first ten
months of this current year the sur.
plus receipts in one classification only,
that OF indirect taxes. were no less
than 1,79S million francs. It is inter-
esting to see whence this surplus
came. 1t is found that the tax yield
on the sale Of houses and land were
vastly superior to the yield expected.
Investigation shows that this is due to-
the acquisition Of property in rural
districts by small farmers. who have
become small landowners. freeing
their holdings Of the mortgages and
other liens which weighed on them
before. The political and social i'm
be noticed as one of the best possible
earnests of the solid prosperity which
Is opening up again before us.
Another source OF wealth in the flu
ture which has not been taken into
consideration at all in considering
our resources. is the return to us Of
the lost provinces Of Alsace and Lor-
raine. These provinces comprise
1850. square kilometArs Of fertile
agricultural and forest land and /. 700.-
added to swell the effort we are max
ing toward our rehabilitation. The re-
turn of the provinces Of Alsace and
Lorraine ends the economic servitude
which was put upon, US by the violent
peace of 1871. Henceforth. with, It's an
1ual rroducfion. ofs AZ 0On nOn fnnn