Evening star., 1925-02-19
Bond Issue to Be FIoated
After Budget Is Balanced
and Voted.
DEVASTATED SECTIONS
TO RECEIVE S35, 900, 900
Details Of Financing Plan With.
held, But Morgan Firm Is Be-
lieved Behind Move.
BY the Associated Press,


PARIS. February 19.-Promise of
a 100000, ,O00 loan for the improve
ment of French finances and another
$35. 900, 900 for the devastated regions,
to be f1oated in the United States s
soon as the budget is definitely bal
anced and voted, was one of the reme-
dies for Frances troubled financial
and economic situation advanced by
Finance Minister Clementel in an ad
dress before the Chamber of Deputies
today.
NJ. Clementel gave no details and re-
Trained from saying whether assur-
ance of the loans came through the
Morgan group, which has handled all
the French financing operations in the
United States. He limited himself to
the simple declaration:
M. Loucher Gormer French minis
ter of commerce) has advocated for
eign loan. We have the promise tn at
when our budget is definitely and
finally voted and balanced one loan
of s1oo.ooO.0o for the French treasury
and another Of $35,000,000 for the
devastated regions will be issued In
the United States"
Industry Only solution.
NJ. Clementel began his speech on
the financial and economic situation
by remarking that the addresses made
on the subject by Premier Herriot and
NJ. Viollette, the budget reporter, had
made II unnecessary for him to de-
liver "a real speech" and he would
content himself with giving the broad
outlines of the governments financial
policy.
You are right not to expect any
miracles-not to look to me as man
with a magic wand" said the finance
minister. ''In a conversation with a
particularly competent personality
recently l was told l might consult
the spirits of Colbert, Turgot and
Rouvier and they would all reply
The remedy can only be found in the
patient, continued arduous effort Of
the French nation, in its savings, its
economy. Its labor, its love OF the
Individual property which 1t has
crested. it's answering support OF
existing institutions"
Believes U. 3. VIII BE Lenient.
The finance minister said the inven-
tory published by him last December
was an attempt to give the world an
honest settlement of Frances finan-
cial and economic situa alton.
TT grieves me- he continued, .'to
note that the American press inter-
preted this inventory. in which the
interallied debts were mentioned
pour memoire'-for reference-as
population. Reputation of debts is
not a French word. France asks only
that account be taken of the condi-
tions under which the debts were
contracted and be allowed sufficient
delay to permit the franc to regain
some of its value.
Exchanges of views have taken
place between Paris and Washington.
We have gone no further. We have
no doubt, however, that when real
negotiations begin our great American n
friends will give us such facilities
for payment as we expect from them"
NJ. Clementel also expressed the
hope that a similar equitab BILE solution
would be reached with Great Britain,
and he thanked the British govern
ment for the cordiality of it's last
debt note and settlement proposal.
New Taxes Held Vital.
Absolute sincerity will also govern
the balancing Of the 1925 budget in
which are now incorporated all the
so-called recoverable expenses and
extraordinary expenditures, the min
lister declared. In conformity with
such sincerity, he added, the country
must be told that the remedy was ad-
ditional taxation and prompter collec-
tion of existing taxSs.
A new tax on insurance companies
and another on sales by business
houses and on business turnovers
would be among the fiscal measures
adopted. The tax on exports would
be maintained, he said, because GER
tain foreign countries considered ex-
emption from such a tax to consti-
tute dumping and were collecting 1t
themselves.
NJ. Clementel admitted that unless
the wartime postal censorship were
established it would be practically
impossible for the government to pre-
vent the expectation OF capital from
the country. The government was not
prepared to reimpose the censorship,
but was studying new measures of
control, by which it was hoped to
bring such exports to a minimum.
THE exports will cease automatf-
cally when confidence is re-estab-
lished," NJ. Clementel declared
Special Measures Planned.
The official report giving the text
Clementefs speech quotes him as
saying with reference to measures to
meet the situation:
Perhaps we shall have to create
special resources; perhaps 1 shall
have to demand fresh effort under
the form of which are to be sough.
an increase in the rate of the income
tax, special contribution or other
measures to be decided by agree
ment with the nation.
Dawes Plan Helps.
The Dawes plan. functioning nor
mally sooner than had been antici-
pated, the minister said, would also
be of much assistance to the French
treasury.
Already this year." he continued,
I'VE have been able to inscribe 1885,
100000 francs on the credit side of
our budget. The government intends
applying to the devastated regions
the entire Dawes annuities, with the
exception Of 20 per cent for amortiza-
ton Of the debt fund" -
At this point the minister said some
what guardedly:
The allies, as a matter of fact, are
demanding this from us in connection
with their claims until the devastated
regions are entirely reconstructed.