Evening star., 1924-01-15
- q.
FRANCS COLLAPSE
VIEWED CALMLY
U. 5. Business Men Expect to Con.
tinue Selling Many Raw Ma
terials to France.
FOOD EXPORTS NAY DROP
Transactions Made, on Dollar In
stead of Franc Basis.
FOOD EXPORTS NAY DROP
BY J. G. ROYLE.

Special Dispatch to The Star.
NEW YORK. January 1s.-The
sharp decline in the value OF the franc
comparatively little anxiety in Amer
ican business circles today. The
move seemingly, had been anticipated
both by business men who handle I'm.
| portation OF French manufactured
goods and those who have been ship
ping American raw materials to
France. The. situation. these men
pointed out corresponds closely TO
that which became evident In Ger
many some time ago. ,.--
So long as French manufacturerfs
were able to use raw mate EiAlS bought
with the francs and to pay their
workmen in francs and to sell their
pound sterling they held q temporary
advantage in. world markets. As q
consequences French factories were
busy. flood OF goods was turned out
and French manufacturers were stor-
ing up profits. -,
France Able to Bly Beads.
Now. however. as In tho case Of
Germany. French manufacturers arc
unable to buy raw materials except
on the basis Of the dollar and the
pound and the drop In. exchange has
forced corresponding increase In
workmen's ompensations. This,
while 1t may serve to check manu-.
featuring activities. is not expected
TO curtatl them entirely. French man
ufacturers have sold their goods on
dollar and pound bases and there 10
every expectation that they will be
able to buy raw materials on the
same bases from the dollar and pound
credits which they have piled up.
The heavy shipments OF cotton, cop.
per and other American raw mate
that this was the case with that coun-
try. .s,- ..,
May PurchaSe Less FoeA.
1t Is regarded as probable In some
circles that the shipments Of food
stufts to France, may be cut down as
a result of the fall of the franc, for
France is in aeposition practically to
feed herself. However, II Is felt shs
Is not in a position to keep her In
dustries running and her workmen
occupied unless she continues impor-
the threat contained. In the demand
by an important Paris paper that
every Frenchman boycott fofein
goods Is not taken too seriously. 1t
eign raw. materials. she will he un.
nble- to turn out manufactured ma.
terials for sale to foreigners.
AS to foodstuffs. reports from the
large American packers show that
their trade with France has been
on q dollar basis for some time.
Formers and Manufacturers Closer.
There seems small doubt that 50
far as this country is concerned. the
farmer and manufacturer are closer
together than ever before. This Is
indicated by the attitude shown at
the farmers manufacturers confer.
ence now in session In Chicago. Farm
crs and manufacturers from two
score states admitted today that when
proposed they did not think any ma
erial good could come Of II. Now.
however, they seem unit In deelAr-
ing that the meeting portends 2 new
era in American Industry and farm
production. ---" =
many Of those attending for the first
time that farmers and manufacturers
are both employers Of labor and that
each is the best customer OF the
other. An unexpected feature OF the
conference has been the utterly frank
their respective problems with each
other. There was an astonishing alb
sence Of suspicion OF each others
motives. ...-..--
Delegates expressed small doubt
that the convention, which bids fair
lead to some sort OF an economic ana
business relationship. Whether II will
lead to modified sort of political al
lance is, much more uncertain, but
certainly that idea Will be discussed
as 2 result of the meeting.