The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1925-02-18
Nation Must Raise in Year
More Than Old National
Debt.

IWI the second Tune IN less tnan
III twelve months. France again
faces disaster over her finances. In
fact, the crisis 10 regarded as the
most serious in the history of the
third republic.
To balance this years budget
France will have to raise total
OF $4,000, 600, 900. francs. more by
$500. 900, 900 francs than last years
expenses. In 1914 her entire ma
tional debt amounted to only 34,1S8,-
100000 francs, or less by some H.
900. 900 francs than the French must
scare up IN. this one year.
Another serious drop in the franc
is feared. In fact, 1t has already be-
gun to fall, and Premier Edouard
Herriot has issued an appeal to all
Frenchmen, OF whatever creed or
party. ito save the franc" in an
hour when 'the fate of the country
is at stake"
Low Last March
Last March the franc hit the to-
boggaii. reaching low of 3.42 cents.
Just before the crash, however, J.
Pierpont Morgan went to the rescue
with ioa.l of 800, 100000. and the
situation was saved, temporarily at
least The settlement of the Ger
man Preparations dispute further
boosted exchange, as did a second
800, 900, 900 loan. subscribed by the
American public.
This last, however. had but
transitory effect, as II was really
only a shifting of the Morgan loan
on to the shoulders of the public
For Morgan was paid back.
Just how France can get out of
her present difficulties is hard to see.
The causes are numerous and are OF
several varieties-fnancial. moral
and psychological.
In the first place, France has done
far too much borrowing and not
enough taxing. As a result, she
must pay 1880, 000, 900 francs an
nually by way of interest on her
debts alone. These are approx
mately 10000. 900, 900 francs gold. for
eign, and 271. 900, 900 900 francs pa
per, domestic.
Bonds Almost Dus
In the second place, large sums
are almost due on short-time bonds
and the wherewithal to meet them is
not in sight save by some robbing-
Peter -pay-Paul process. Mean
time French citizens are sending
enormous sums Of money out of the
country because of the general feel
ing OF financial uncertainty.
Talk of war debts Reputation. of
inability to meet her obligations and
the fear of each succeeding govern
ment in France to follow the exam
pie OF the British and task her PEP
pie until her Adebts are funded and
exchange normal, are contributory
causes.
The fact that France and Germany
have to this day failed to patch up
any sort of lasting peace to patch up
tinue to live under a sort of armed
truce, is not helping matters. The
situation is conducive to political
unrest within France and lack Of
confidence abroad.
Opposition to Her1iot
Being socialist, Premier Herriot
of course has against him all ths re-
dictionaries in the country. from
Poincare, C1emences.u. Tardieu and
Foch down the line. The Royalists
are using the situation to create
trouble and the communists are
making matters worse with their
occasional riots.
to Herriot, because of his recall Of
the French diplomatic representative
at the aVtican, and the so-called no
bility are against him because OF his
Minister of Justices bill to stop Of
fetal recognition Of their titles.
A year ago when the bottom
dropped out of the franc, the blame
was placed on foreign spectators"
Now .anti-socialist papers. like lie
Temps" blame Herrfot and say ex-
change is barometer which
registers world confidence In any
particular country and cannot be
manipulated.
The truth is that unlike Britain
and America, France all along has
shown tendency to sidestep her OBJ