San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-16
ELATED
OVER ADVANCE
OF THE FRANC
People in High Spirits Dc
spite Warning That Bat
tie Not Yet Won.
POINCARE IS PRAISE
Tardieu Says Governm
on Right Track am
Hopes 1t Will Stay.
BY ANDRE TARDIEU.

By ANDRE TARDIEU.
Copyright, 1924. by Consol. Press An
Paris. March 12.-The franc b;
won some skirmishes in the week
exchange battle. The dollar, whic
had reached $3.50 francs. declined I
oo2.7O, while the pound fell from IL
to %.
This was due TO the fact that-tt
government finally decided TO figl
on the battlefield chosen by II
bears In January, it was assertt
that the fiscal measures propose
would suffice to stabilize the fran
Both in the Chamber of Deputies an
in these dispatches, the writer shove
why he considered this impossible
Events have proven that this was II
correct view. since between JanuaI
and March the franc lost one-fifth
its value, despite the fact that II
Chamber voted the government pr
| posals. So the government on Mare
Q decided TO adopt two measures whie
| the writer had been urging +,
months. but which. for inexplicab
reasons, the government refused (,
adopt.
The first measure was resistance
| foreign money. That is the simp
\ II G of exchange dealings. Eve
during the war when defense I,
French exchange was relatively en-.
because OF the close solidarity amor
| the allied and associated government
| I'tsas sffl IN
/ The writer remembers various occ;
siOns when he interviewed as Frene
| high commissioner on the New Yoi
exchange, especially the day whe
| Paris was first bombarded by Il
Bertha and when artillery experts pr
| cipitated a panic by insisting that
was impossible 10 construct a cannQ
with such a long range. from Wild
everybody concluded that the enen
was much nearer Paris than the cor
muniques admitted.
Better Late Than Never. -,'
Recalling these experiences in q
Chamber. the writer expressed asto
iShment that at the present momcn
Singularly more difficult from d
viewpoint of defending the frame tia
in war time. nothing had been dor
along similar lines.
But better late than never. and =
must approve the loan of 500 0o0.ot
negotiated with J. T.. Morgan o.
COMPANY. But this operation, whs
| produced an immediate rise in y
frame. would have been far mOse, y.
| tent il it had been accomplished 9,
lier. If this loan had been made
| the autumn of 1923 when passive
sistance i'm the Ruhr ceased. the eci
sequences would have been inealcu
able. not only financially, hut polii
cally. Lasteyrie. minister of financ
said laughingly the other day:
Great doctors do not intervene ~
til fever reaches 1906"
That may be so, but the writer pr
! fers lesser doctors who come carli'
and prevent the fever reaching tn;
point.
The other measure taken this wee
consists in exempting from lncon
tax revenue short term state bond
This measure will help the treasur
but it must be confessed that it is ]
contradiction of the policy of fisc
inquisition contained in the Cover
ment's recent proposals. One of the,
proposals requires filling out a tn
declaration each time security coupon
are presented for payment.
On Right Track.
This means filling about 60O,OOO.U
declaration annually and, il effecuv
would mean establishing a vast b.
reaucracy far costlier than the aiiegs
frauds it would suppress.
The writer protested against tn
added inquisition because he though
it would be ineffective but more b
cause in crisis like the presen
France must choose between a polio
Of taxation and a policy of inquisitioI
Indeed, q year ago the Poincal
government took the same stand. !
is hard to understand why it adopi
contrary plan now. In any cas-
by exempting short term bonds, IT.
only from inquisition but from incou
tax, it takes a step toward encoura;
ing savings and deserves congratuls
tiOns.
At the same time il must guar
against repercuSSiOns, such as the re
atiyely unfavorable situation tn,
created for other obligations such
rentes which are still taxable. Boz
holders since 1919 have lost abot
%. OOO. 100000 francs as a result
declining values. 1t is scarcely d
proper time 10 impose further hand
caps on them.
Moreover, Frances fiscal aim shout
be in the direction of conSolidatio
in other words, transformation I'M
rentes of the approximately 60.00N
600 900 francs of short term pap,
which weighs so heavily on Franc
credit and exchange.
With these exceptions. France h.
been on the right track during tll
week and it is 10 be hoped u vi
stay there.