New-York tribune., 1922-02-27
Confidence il,
aris Causes
'osal'sc Rises
! rcnc'' Believe Tia, the In.
icr"al and Foreign Po.
''''caI Situation Has
a Favorable spec
Spoc'ol coblr 70 YAe 7rt5us,


'opyright, lqos New York Trihu,.
PARIS. Feb. 26.-Conddonco - -.
greater strength and stability Of the
new government at home as wsl1 80
abroad has caused continuation 90
the advances on the Bourse. Th,.en
per cent bonds are now noar so oon,
pared with Sd at the beginning 81
January while the market ITSELF has
taken fresh optimism from the o.
pectation Of favorable outcom. ~
present political negotiations
England is adopting a more con-
c''a'ory attitude toward France real
izlng the growing influence or +ha
Li'tie Entente, whose policy is f,o,,',
tancophlie. Indications point ~ ',l,S ,l,a
enlargement Of this influence IN the .l'e
'"'uIe rs the now countries. total{no
more than 6oo0o0o0 inhabitanfs 'e hns
V0.N' H'inlN established and move
ygn9c'V"s o. their intordependrnce
n'neS, OF C7echo- -Slovakia. has as.
o"'leu 'n" mora leadership Of tho
'0"' "Nien formerly was taken
~ Il Ya"eSeo' the Rumanian Premier
on ms own initiative. French ata+oa ,,''e,
mon are beginning to realize +bo. s'a.es- .'';1
gary security against Germany NAV,
oe pest achieved by the assistancse s
or 'heSc smaller Slayic nations. wh;lo
NHcSe countries offer France = r.tr,.aI
"u'Iet Tor commcrcial expansion dno
10 tAelr favorable exchange and nsad
for goods ''N "ccu
Count Dc Lastcyric has inaueu,ated
'ne postwar realistic policy Of basinc
sNPenoitures on receipts, making ia,
Nentoues of all assets possessed b., w.,
SoNernmont. and reducing all services
20 inc pre-war hgurc, as far as nos
9iV'V' BASED On this plan, steps have
oeNn 'aNcn toward the reduction of
government employees to the nre.war
TOTAL as soon as possible.
burdonsomc restrictions imnosod an
private property also VIII be removed
L" permit business 10 function nor
MARY Many oil these restrictions. nro-
venting hgh rents, fixing naxi,nun,
prices as well as prohibiting many i,, :.
ports, haze been explained by the con-
tention ihat France. M cxceDtionallv
democratic ration, feared the dissat.
lsfactlon ol any large category Of tho
Population; therefore. in hard times
she was ANXIOUS to give every one a
ili'Io more than was due in order to
aiIal unrest confident that later sha
agance and obtain balanced budget
by slowly progressively Increased
taxation.
Gradual steps toward the normal
nave already shown that taxes are
yielding 10 per cent more than in
IH-u, despite the trade crisis.
Inc liberation OF capital from state
eompe tit4on Is equally important with
the ircelng Of private endeavor from
governmental control. With present
national loans bcosing 2-3 per cent
ON long term issues, private cnterprise
IS unable TO find funds except at pro-
nibitivc rates.
On March . interest on treasury
bills was reduced hail of per cent.
which not only viii save $50 ,000. 600
lrancs annually, but will send surplus
funds into business DEVELOPMENT
Easier money conditions, however.
probably will obtain soon due to the
determinatlon OF the ministry progress
sively 70 reduce the interest rate on
government loans toward 3 per cent.
thcn consolidating the floating debt,
But plans are to lower the rates less
rapidly than New York and London.
thus influencing capital toward Paris.