Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-29
France Is Declared
Basically Sound;
: Facing Sacrifice
Continued from First Page.)

Continued from First Page)
equal to the French on half as much
land, with no raw materials. not even
iron and potash. with a huge food bill,
with an ever-expanding population.
Such comparisons establish the funda-
mental advantages of France.
Today the problem Of France Is
relatively simple economically speak
Ing. It Is necessary to stabilize the
franc, and sterilization must be at
some figure not far from cents. Such
sterilization will bring contraction
of production, but the unemployment
need not constitute a treasury prob
lem because of the two million for
eigners. 1t will mean higher prices
and incidental hardships during re-
adjustment. One class of people, those
who have lived on their government
securities--and 1t is considerable
and influential class-lnay be partly
wiped out, but for all Frenchmen
there will remain a living inside
France. Half of France is on the
farms and their occupation Is assured.
French coal mines will continue at
full blast, beca use France will always
need more coal than she can produce
at home. The commercial treaty just
made with Germany insures market
for large part of the iron in excess
Of domestic needs.
On Edge of Boom.
Again. one should reckon that
France is on the edge of a great colo
NAL boom. Morocco is an untold field
for development and the north Afri
can, west African and central African
colonies await capital for brilliant
future. Algeria, Tunis and Morocco
are not only great importers of
French manufactures, but they sup
plement French food production, and
cotton and other raw materials will
come in increasing quantities from
the Niger districts
The problem of France, after all. is
political and financial. France cannot
carry the load of the war debt restored
TO par S25. 900 900 900 must be reduced
I'm form as it has been in fact to
$4,000, 00O,0 The holders Of govern
nent securities must bear the loss.
If they will, if they will permit the
politicians to stabilize the franc, the
rest is relatively easy. But what Is
required is a capital levy amounting
to a quarter of the nominal wealth of
France. Poincare's problem, if he ac-
cepts the logic of the situation. is to
impose this sacrifice. Will he dare to
do it? Will the French people consent
10 the loss or will they turn to quack
remedies and indulge in political up
heavalS?
1t is utterly unjust for the Ameri-
can and the Briton to underestimate
the extent of the sacrifice involved.
Germany made the same sacrifice, but
only under dureSS, with her territory
occupied by foreign armies, only as a
consequence Of defeat in war and help
lessness thereafter. But France is a
victor, not n defeated nation, and no
foreign coercion is possible.
After 1870 defeated France recov-
cred more rapidly than victorious Ger
many. After the wars of the Revolu-
ton and Napoleon, France was the
first European nation to come back"
completely. The same capacity for
quick recovery is inherent in the
French people and the French situa-
ton today. No fundamental circum-
stance in French economic prosperity
has been abolished or materially mod
fled by the war. This is exactly true
of the United States also. although
we are, of course, n vastly greater
economic power.
Advantage France Won.
The war which destroyed British
markets. and German as well, which
changed the whole situation of great
European industrial nations. which
raised in the United States a deadly
rival to Britain financially and indus
frially. which precipitated every kind
Of political problem with economic cir
cumstances, changed the French stu
alton little, if at ALL On the whole
the acquisition of Alsace Lorraine left
France little richer on balance. while
her political situation was enormously
improved by the elimination of Ger
many and thus her cost of ornaments
materially reduced.
Nor does France face any such war
between labor and capital as Britain,
for the simple reason that France re-
mains half agricultural Twenty mil
lion Frenchmen live on FARMS the
peasants own the farms almost wholly
The industrial revolution has not come
10 France, political power continues to
reside with the peasants, the farmers.
The dangers which face Britain and
Germany to less extent cannot come
TO France because of the totally diff.
ferent character of the population.
The single upheaval which threatens
France Is the revolt of the more or
less capitalistic elements which are
called upon to bear the burden of
stabilZation. There are no unem-
ployed. there are few strikes, the
Workingmen are on the Job and. until
the franc f1uctuated wildly. were ade-
Quately paid. Once the franc was
established the situation would be
tasy, for in France there are not
enough native workers to fill the
Domestic needs. Economically and
socially. then, France is solid
If. for example. Poincare were able
10 impose sterilization. assuming that
he is wise enough and strong enough
TO do it. I do not think it Is an eX-
Rggeration to say that in five years
France would be quite as prosperous
as before the war and vastly more
prosperous than any of her larger
neighbors. France faces an operation
for, say. appendicitis. an operation
necessary and not to be postponed
without evil consequences. Follow
ing the operation there must be no
permanent evil consequence. She
can hope to be just as we'll as ever
presently. The Affections of Ger
many, Britain and Italy are far more
serious; they have the element of the
permanent in them. They may easily
grow worse with no apparent cure.
no operation can give promise OF re-
turn 10 health. the diseases may not
be mortal. but they do involve tenn
borary and perhaps long continued
suffering and postponement of sound
health. They are in sense consti-
tutional and not accidental.
But to keep to the figure, the life
Of France can only be saved by an
operation OF course. in reality
France will not die. Nations do not
perish. But the consequence OF