The New York herald., 1922-02-01
FRENCH FINANCES
TURN THE CORNER
Bank of France Reports Peak
Passed and Economic Sta
bility Nearer.
by LAURENCE HILLS.

Special Cable to TIE New York HERALD.
Copyright, 1872, by THE NEW YonK HEEALp
Now York Herald Bureau.
Paris, Jan. 81.
France has safely turned the crest
Of her financial difficulties and is justi-
fed in anticipating an era OF satisfactory
economic conditions which will rapidly
bring the value OF the franc paper
nearer pre-war quotations than has been
envisaged since the armistice. This is
the impression obtained, which Is being
widely commented on in French business
circles, following the distribution to-day
of the annual report of the Bank OF
France, wherein the first real indica-
ton is given OF the tremendous effort
made by the bank. cooperating with the
public and the Government. to bring
back stability to French finances.
The weekly balance sheets. unless fol-
lowed closely, do not reveal the extent
OF this movement, but Gov. Bobineau oi
the Bank of France sees in the re-
duced wholesale prices, the reduction OF
the discount rate and the fact that more
than three-fourths OF the agricultural
regions which were devastated are now
producing while four-hfths of the fac
tories are again working with so per
cent. of the pre-war personnel. new
situation which will have a favorable re-
action in Frances commercial balance
which has already returned to its pre-
war excedent of 1000. 900. 900 francs on
the importation side OF the commercial
ledger.
The exchange fluctuations, the re-
port shows, have now passed the dan
gerous stage and will continue ir
Frances favor as, despite the financial
stress, the public here has not lost its
n
savings, while the industrialists have
accumulated raw materials which will
enable them to keep up production.
In SO far as the Bank of France itself
is concerned, the magnitude of it's oper-
ations with the Government and the
public is undeniably encouraging. The
State has done more than it promised
as its Indebtedness to the Bank OF
France has been brought DOWN from
26, 600, 10000 francs to $4,000, 100000
francs, this. according TO M. Robineau
serving to restore elasticity to the bank
emissions and enabling 1t to meet all
commercial and industrial credit needs
OF the 4500. 100000 francs advanced
to the public on security since the out
break of the war 9S7-10 per cent has
been liquidated. the balance representing
only small fraction wherein the legal
delay has not expired.
During the year just ended the bank
sold more than 30,000,000, 600 francs
worth Of national defense bonds. in ad-
dition to 1000. 100000 francs worth
of per cent Treasury bonds, bringing
the total public subscriptions in its
branches alone since 1914 to 10S,000.-
coo. 600 francs At the same time the
banks metallic reserve has increased
100000 francs, of which 2i,000,0O0
francs are in gold, the total in gold and
silver at the end of December being
$500. 100000 francs. The effect of this
is augmented by the fact that the note
circulation has been reduced since May
by more than 2.5oo,00o.0oo francs as a
direct result OF the Governments res
toration Of confidence by repaying more
than 1t promised to pay.