Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-07-27
FRANCES NEW FINANCIAL
POLICY

vet prescribed his remedy for the
cure of Frances financial derange-
ment, the certainty that France
must consent to renewed financ1al
sacrifices" will be bitter pill for the
average French citizen. The pre-
nier faces a problem Of which no So
luton will be satisfactory to all and
upon which there Is a great diversity
of opinion even among the French
financial physicians.
That an increase In taxes, both d.
rect and indirect, is to be one OF the
chief factors in the governments
plans for financial reconstruction, will
prove an unpopular solution among
the French people. While certain
students Of the economic situation
abroad express the belief that the
French are now paying taxes heavily,
others believe that the people Of
France will not tax themselves to the
limit-a step, which although radical,
appears to be forthcoming in the
recommendations for curing the
country's fiscal Ills.
The French although known to be a
thrifty people putting aside a portion
Of their earnings for investment in
securities. will doubtless be called
upon to practice greater econ
omy in the government expendi-
lures. The report Of the French
financial surgeons. issued early this
month. stressed the need for drastic
reduction of the states expenses. the
cutting down Of the administrative
stats to q minimum, and the reduc-
ton Of the number of departments.
Drastic steps must be taken If France
Is to balance her budget.
Referring to the methods suggested
FOR stabilizing the franc, the Spring
field Republican has the following to
say:
Then as to methods there is a wide
choice. Some experts want an arti-
fetal control of exchange by the
maintenance OF balances in foreign
currency held abroad, which can be
used like the ballast of a balloon.
Others would resort to a fixed rate
of exchange and maintenance Of 1t
by control of the currency. which in
wolves the sure balancing of the
budget to which France has not yet
attained. Another plan is the gold
bullion standard, adopted in Great
Britain. which some experts think
applicable to France, which has not
a sufficient metal reserve for a full
Ar-x ,ioJ,
notes and gold coin would be put on
the same level and made inter-
changeable.
Even in the technical aspects Of
the problem the experts differ widely,
yet this is not so important as their
inability to agree broadly on the
course which France should follow.
There is still time to adopt and
apply policy. 1t was not till two
years after the mark had reached
the present level of the franc that the
great smash came which in IL
months reduced the value OF German
money practically to zero. The
money Of France should not fall so
fast. for no blow like the invasion of
the Ruhr is to be expected. Yet the
sands are running out, and each min
isterfal upset leaves matters a little
worse than they were.
Premier Poincares' announcement
OF his financial policy is awaited with
great interest, especially by those
who believe that M. Poincare will
succeed in forming the strongest
cabinet that France has had in two
years. While some outline of the pro-
gram has appeared from cable dis
patches, official announcement is an
ticipated in the hope that It will con-
tain some added feature that win
recommend itself as sound finance to
relieve a perilous situation.