The Washington herald., 1922-07-16
FRENCH INDUSTRY
SHOWS GAINS ON
IRON and Steel
Exchange Steadily De.
Clines, with Employ
ment on Increase.


mittee of the chamber of deputies
Proposes to increase taxes to meet
the deficit in the 1928 general bud
get. according to a cablegram re-
eeived at the department of COM
merce from Commercial Attache
Huntington. Paris. A proposition
from the minister of public works
that Germany be permitted to con-
Struct public works in France to
the value OF $4,000. .0OO. 900 francs
may prove an interesting develop
ment in the reparations muddle.
! Demands from the British govern
4 ment for payment of interest on
British treasury advances to France
were. largely responsible for the de-
cline in the franc to a low point
for the year. The general indus
trial situation. although somewhat
less active in certain lines. has
shown no important change during
{ the month improvements in iron
and steel. which showed great
promise last month. have been tenn
I pOrarly checked. Unemployment.
as indicated by numbers receiving
government allowances. is still be-
ing reduced.
Budget for 1928
In his report on the 1923 budget,
the secretary of the finance COM
mittee Of the chamber of deputies
proposes to overcome the 4,O0O.00O
noO franc deficit in the budget by a
reduction of military expenditures.
the discharge of $4,000 government
employees. and lowering the interest
on bons de la defense rationale.
He also suggests that no further
reimbursements be made to the
Bank Of France. which would elm
inate further reductions of note cir
culation Revenues would be in
creased by new sources of consump-
tion taxes heavier levies on the
agricultural class and inheritance
taxes The income tax issue Is ex-
tremeIy acute. with strong resist
ance to the so-called inquisition
features.
No satisfactory proposals have
been made concerning the repara-
tiOns questions. although the gov
eminent is now trying to have Par
lament adopt notifications of the
wiesbaden agreement. The failure
Of the international loan project
has intensified the policy of secur-
ing payments in kind.
Franc Reaches New Level.
Sew York quotations on franc
cable transfers moved steadily
downward from sO.091 on June s
to sO.OTsC on July 8. This is the
lowest level for the franc since the
early part of last December. In
addition to the reparations dihcul-
ties. the announcement that the
British government would demand
from France payment on interest
on British treasury advances was
the leading factor in causing the
fall of the franc. which drop caused
rise in foreign securities ana
French industrials except steel and
shippinE shares. The bourse is hrm
but inactive on account of the in
come tax agitation and the unfa-
yorable showing of many corpora
tions in their annual reports
The new loan Of the credit ma
tionaI for 3.29O.0OO, 900 francs was
nIaced on the market during the
last week of June. The issue was
in the form Of bonds of the nominal
value of 500 francs. interest at D
per cent tax free. redeemable at
intervals throughout eighteen years.
TIE net price of issue was 49SoO
francs ravment to be made In casn
- cbeckz The conditions OF this
loan are much more favorable to
tho treasury than the February loan.
the actual rate Of interest being
Sis per cent as against 90 l
nor cent for the former loan OF
tho Crvdit national The annual re-
p pO-t nf the Ranoue Rationale Fran
raise du Commerce EXterieur shows
an extension of agencies al nome
and abroad Advances to clients
amounted to so per cent more IN
1927 than in 1920. and bills dis
counted and bills for collection were
three times as great. Gross prohts
exceeded 100000 francs. but g.
Nap n0N francs were set aside on ac-
count ~ losses from poor paper. and
no dividends were declared.
Iron and steel.
Tho Improvement in the iron and
steel market has been Temporarily
checked. and although many IN
nuirfes are still being received
tbes. are mostly feelers. The Ger
man demand for semifnished prod
nets is slackeninC. but some export
1rders are being received from
,other countries. The demand TOT
mig iron is limited to foundry needs
The fall in franc exchange has I'M
proved the hematite market by in
cressinC British prices. and has at
trac+ed british buyers in semi
finished steel. although the domes-
. tic demand COR the latter product
Is weaker Bars find an active de-
Ynsrd and beams and rails are frm
f~he demand for plates and sheets
has slackened. but mills still have
a considerable tonnage on their
books. Depreciation of the franc
has served as an offset for Engisn
and ReIgian competition.
Deliveries of reparstions coke
/, from Germany have fallen off. Lead
ing copper importers report salts
factory business, with fairly gen
eral distribution among industries.