The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-01-15
FRENCH ORDINARY
BUDGET PROVIDES
FOR II BILLION FIR.
Special Budget, in Max
ing, Relates to Pensions
And Reconstruction.
DEBT OUTLAY MOST
Internal and Commercial Part
OF Foreign Obligation Put
At 1858, 900, 900 Francs.
DEBT OUTLAY MOST

adopted by Parliament, provides
for appropriations and revenue of
24.7oo.ooo.ooO francs. This appar-
emily balanced budget is subject.
however. to some important reser-
vations noted below. says the De-
psrtment Of Commerce.
The new measure is stated to
mark a step in the direction Of
budget unification and the aboli-
tion Of the extraordinary budget.
so that the regular budget will
ultimately include all expenses not
covered by the special budget. The
extraordinary expenditures have
not been eliminated. but they are
now included in the ordinary
budget, following the corresponding
items of ordinary expenditures
The special budget, still under con-
sideration. is confined to pensions
and reconstruction advances, which
are regarded as a charge against
reparations and are. therefore, ex-
eluded from the ordinary budget
Main Items.
The main items of expenditures,
In round figures, are as follows:
Service of public debt (internal and
the commercial part of the foreign),
12.653.0OO. 900; military expenditures,
2.709 ,O0O.000.i naval expenditures
Exclusive Of building program),
$4,000. 900; other executive depart
ments. 5.224.0O0.0OO; administration
Of monopolies and tax collecting.
2.475 100000
Judging by the expenditure of
the past year supplemental esti-
mates will doubtless be necessary
as the military expenditure seems
likely to be far larger. The spe-
cial budget, which has not yet been
adopted. is estimated by the finance
committee of the chamber at A.
eO0.O00.OO0 francs, of which 8,000,-
100000 is to be spent on recon
struction. 1000. 100000 on pensions.
and 1000. 200. 900 for interest on re-
construction loans. The principal
items of revenue are as follows:
Taxes and receipts. $4,000, 900;
monopolies and state industries, g.
91l.0OO.000: war profits tax, 1885,
100000; liquidation of war stocks,
SEQ, 100000.
The ordinary budget as originally
presented by the minister of finance
involved a proposal for doubling
the turnover tax in order to meet
the admitted deficit of about u.s.
900. OOO. 900 francs. The finance
commission of the chamber re-
jected the proposal for new taxa
ton of business and decided to rely
frfr mi fra f0r1
of the existing tax laws and the is
suance of new treasury certificates
to- take the place of the rents
turned in in payment of war profits
tax.
As stated above. the anticipated
expenditure of $4,000. 900, 900 francs
under the special budget is to be
met entirely by reparation pay
ments, and since the share of France
in such payments, even il they
should be made in full by Germany.
would amout only to about $780,
100000 francs (at present rate of
exchange), the difference will prob
ably be covered by the issuance Of
short-term treasury certificates.
Railway Budget.
The rail way budget, according to
the statement of the reporter of the
budget, will not involve any deficit,
as under the new transportation law
the government guarantee of inter-
est is replaced by loans floated by
the railroads. In 1921 the railroad
deficit amounted 1900. 100000 francs.
The government has been granted
power to issue some $4,000, 0O0, 900
francs in short term loans or treas
ury documents, and this sum seems
to be intended to cover more than
reconstruction purposes.
Public Debt.
On October /, 1921. the public debt
stood as follows: Internal debt,
237,S67. 900. 600 francs, paper. of
which the floating debt amounted
to 9S,534.o 1000 francs. The float
ing debt 90 made up largely of
-short-term treasury certificates,
which circulated to the amount of
about $4,000. 900, 900 to 10000. 0oO, 900
francs by the end of 1921. A con-
siderable proportion of those certifl-
Gates is used in the same way as
bank notes, and thus may be re-
circulation. They are ISSUED for
a year. with an interest rate rang
ing. nominally, from 3.5 to per
cent, the rate being fixed according
to length of term. The treasury
certificates are issued under the law
of September. 1914, and no parlia-
mentary sanction is required for
separate issues. The finance COM
mittee recommended that for 1929
the issue of treasury certificates be
limited to $4,000. 100000 francs. of
which 5000, 900, 900 francs should be
used as an advance for the expenses
of the army of occupation. It also
recommended that in refunding the
short-term issues. due during 1922.
the treasury be restricted to issues
with a redemption limit of ten years.
External Debt.
The external debt amounted. on
October 1, 1921, to 35,525, 900 900
francs, gold. or $4,000, 200, 900 francs,
paper. at the current rate of ex-
change. OF this amount 29.534. 000,-
900 francs. gold. represents what is
designated in the budget report of
the minister. of finance as the ''po-
lftical debt" that is, the war loans
by Great Britain and the United
States, for which no provision is
made in the budget as regards pay
ment of interest or amortization.
The interest on the Commercial"
part of the foreign Indebtedness Is
included in the regular budget. The
commercial part. amounting to
e,fO5, 900. 900 francs, gold. represents
loans advanced by private interests