New-York tribune., 1922-01-02
French Outlook
Is Brighter as
1922 Stirs Hope
Stnbilization Of Eastern
European Countries One
OF Early Possibilities:
Amity With British Seen
lnternalF'inancesProbicm
Country Has Large Obi
CATIONS 10 Meet i'm Next
Few Years, Survey Reveals

Copyright. 1899. New York Tribune Inc
fARlS' Jan. i.-The beginning OF 5
loW year .indo a great anelioration
of rrancc'7 external situatior, result
ing largely from better understand
ing wlth her allies, especially England.
AZ 1hc conference in London Premier
Lloyd George gave France definite os-
SuIancea OF priority il reparations
payments OF specie or kind if France
IN return eo-opcrates in the re-estsb-
llshmcnt Of British trade, which T,lovd
George describes as Britain's "dcvus-
tated regions"
This will imply stabilization Of the
mark and other currencies Of east.rn
EUROPE, bringing into harmony the d;s.
crepancics between exterior and i'm
terror buying power. The plan is based
on the Ter Meulen credit system. The
Oneory most advocated as providing
security OF liked value while now nm
chasing internal bonds Of impover;ahna =
nations subject TO continual and ortor
nc:it Gus speculative variatiors in
pfIce. In the future Germany and
otner dehtor. nations viii euarantee
INC loan services By handing over Their
customs and state mouopoljes.
WITH the enormous fall in interest
TAtes IN TIC United States and reutra,
countries it becomes evident that jqo1
%'l! sec q great movement Of capital
toward the Old World LAST sorjny
Mrst class countries offered 8 per cent
while now ,he best loans il Fu-ono
pay only 6'a per cent.
look to Conferences
It Is hoped that the conferences y.
Paris Of financial experts and later at
taonoa OF premiers will be able 10
solve tNc economic reconstruction o.
Europe as yeN IS the question of rcna-
f$Non6. on which depends the eouilib-
mum Of tire Wrench budget for the next
eight years.
The French national interior debt
now is 2S7 S7,oo0,000,0 900 francs, which in
1871 Will amount to 0,O00 100000 M
= result of @econstruction OF the
neTaStateG regions, pensions, indcnlni
ties, etc. Even with the franc at nar
the exterior debt, including interest.
wlll grow from $4,000, ,OOO, 900 tc $1,000
ooV,OoO francs. The total debt thus
"ill be 367,000,00 900 with interest re.
quircmcnts Of l9000,000,OOO francs
after 1871. }iye and s per cent bonds
sr interest rates, thus reducing the
burden appreciably.
frances income is estimatcd at
lso'ooo,ooo.oo0 francs, from which
2o.oo0.000 900 will be from taxes. which
compares with q 1913 income Of
$4,000, 900 francs. cne-seycnth Of
which was derived from taxes.
Restoration of the devastated re-
gions is expected to increase the
budgetary returns 20 per cent, which,
after the passing OF the trade crisis,
allows for an increase Of 100000 600
francs revenue, making a total Of more
than 10000 100000 annually
french economies, according 10 stats
tics, amounted to $4,000, ,ooo ,ooo in 1919
and 10000 1000 francs in 1890. This
year only. $4,000, 100000 francs was
saved in this way. due to the steady
de!iatloD starting year ago.
The French economic situation has
been strengthened by mil sary and eco
nomic alliances throughout Europe.
starting with Belgium and Luxen-
bcurE. Belgium is oppressed at pres
ent By The trade crisis, being particu-
larry dependent on France for support,
SIS she is primarily an exporter Of
finished products from which she OBJ
tsins funds to purchase foodstuf's.
Her unfevorable trade balance result
ing from the fall in exchange rates
maintains the cost Of living at 81
times above the pre-war level.
In the Near East and the Balkans the
formation Of a little entente under
French auspices enables g large de-
mobilization Of French troops, saving
hundreds of n llons OF francs in the
coming year and serving as splendid
outlet for French industries when The
exchange situation is clarified