Evening star., 1924-03-14
TN TODAY'S SPOTLIGHT
BY PAUL y. COLLINS

sillency than the French. and in spite
of the fact that her mines had been
/ Hooded, her factories crippled and her
farms and vineyards devastated over
| a third of her richest area, she had
/ recovered her self-efficiency between
| 1920 and 1928. to the extent indicated
| by the decrease Of her trade balance
| deficit
| The result of this demonstration of
! her ability to recover was that for
| eign investors speculated in her eX-
changes. brought her francs and secu
| rites, and thus stimulated the market
! value Of her currency. But when the
| Ruhr invasion failed financially. when
| the reparations payments ceased.
when the grafters in the rebuilding
| of devastated regions were exposed,
when investors began to question
! whether after all. Premier Poincare
| coud perform the impossible miracles
i of his agenda. confidence wavered.
The spectators reacted, and there
was concerted effort. to bear" the
I franc. German spectators boasted
= that France would have to issue pa
per imitation, and that the franc would
go the way of the German mark-into
utter OBLIVION. 1t was bear market.
The battle of the franc has ragged
furiously in New York. 1t was there,
rather than in Paris, that great ma
neuvers were ordered. A German house
had adopted the plan of keeping its
offices open an hour or two after mar
ket hours, so as to offer francs below
market price, and to sell short in i'm
mense amounts. This would give a
low quotation for opening the market
next morning. Then a French house
backed by some American bankers
(reported to be j. P. Morgan & Coz
hy a
work also after hours and buying
francs. When the news came that
the S10O.o00,000 loan was made to
, France, the franc quickly leaped from
day closed at 4.161z. The shorts lost
! heavily The bank experts say that
care will be taken not TO permit
speculation to run up the markee ,see
/ there be financial embarrassment
widespread.
No loan brings permanent relief
! from financial straits; 1t only post
French government curtaiis It's iur-
ther advances to the little entente,
where, it is alleged, the money is used
for war preparedness, to help cneck
! the mutual enemy, Germany, then
| France may produce the means for
. repaying the $100,000,000 by increas-
! ing her already heavy taxation. or
she may be able to hoat new 90
4 meStiC loan. commence lHC SoesfhS-
| ity of the American bankers assures
J the public that there must be tansi-
BILE evidence of Frances recovery or
| our bankers $100.000,0 900 would never
have followed the national loan of
81 600 000.0 900 which France refuses to
| convert from book account into
stipulated definite, tnterest-bearing
securities, even though she is unable
| to make payments. Public optimism
| follows the showing of bank confi-
dence.
| Premier Poincare proposes an in
creased tax rate of 20 per cent, to-
| gether with stricter methods OF col
| iecting all taxes. Great dissatisfac-
! tion arises from the disclosure Of
graft in the rebuilding of devasta-
tions. The French people have long
resisted taxation. while preferring to
The result Is an enormous debt, an
! immense issue of bonds, which shrink
| in value because of their volume.
! Today news comes of government
=, precautions against threatened revo-
| luton with an attempt to seize tie,
government and overturn the repub-
| lie. Sealed orders are said to have
| been issued TO all chief officers of the
Army, the seals of which are not to
| be opened until the moment when
Paris Is declared TO be in state of
| siege. Perhaps our International
bankers were rftouch with the revo-
| lutionary crisis in advance of the
promise of the loan. If not, the de-
| yelopments of the next few days may
j effect the carrying through OF the
/ financial plans.
tco0yrixat. 1894. ny P.ni v. csaa.Aa