Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-23
France Visions Slump
Lasting Until Spring
BY GERVILLE REACHE,
A Foremost Journalist of France,


II the economic situation in France
remains privileged compared with that
Of the other European nations, never
theless 1t now presents clear signs of q
decline.
It Is true that the general index of
industrial production made only o slight
repression at the end Of September OF
1877, compared with the average figure
for the year 1929, which was 139. These
figures are based on an average Of 100
in 1918.
The drop Is explained principally by
the fact that mechanical construction
for the railroads and the activity Of the
shipysrds went along unchanged, while
certain industries, such as building and
progress last Summer. On the other
hand, the slump has continued In tex
tiles, where production, which was re-
duced per cent in 1929, compared with
1928, was cut down by per cent in
1880.
In q short time these reductions will
be wider and wider. At present the fac
tories are working only five days q
week, sometimes less. This condition
affects cotton weaving, hosiery, tulle,
lace, carpets, upholstery, etc. In the
artificial silk trade expectation has be-
come impossible, except at q loss, as .
prices, while on the home markets rather
sharp war Is being waged for the pur-
pose Of eliminating the secondary COM
panies.
The slowing down Is also becoming
rapidly accentuated In iron and steel,
which attained their peak production
at the beginning Of 1890. Production Of
pig iron has fallen on as follows: July,
S61 900 tons; August, S45 900: Septem-
Der, 801 900, compared with the 871 900
monthly average for 1929. This falling
following the denunciation Of interna-
tional agreements. Production Of steel
has also fallen off-July, $4,000 tons:
August, IT'S, 900, and September, 767, 900,
compared to the sos, 900 monthly aver
age In 1929. Partial unemployment has
made its appearance In certain branches:
for instance, rolling mills, sheet iron
works and automobile factories.
Railroad receipts and car loadings are
still normal, and the returns from in
direct taxes, as well as the small num-
the French internal market Il resisting
the economic depression.
But the case Is different with the
volume Of external exchanges, which
has fallen from $500 900 900 in the
first 10 months of 1929 to $4,000 ,OOO, 900
in the like 1890 period.
This resistance Of the internal market,
joined with the persistent depression in
external trade, arises from the fact that
French prices during all this period
have been rising toward world parity.
Whereas wholesale prices have not
ceased to fall since July, retail prices
reached their eliminating point ct the
end Of October, with the gold index ct
12s, compared with the pre-war figure
Of 100.
The rise in internal prices, wages and
salaries will be sufficient to explain why
France Is the only country where none
tary circulation has increased. There
Is now $500, 000, 900 more In circulation
than there was q year ago. Numerous
economists attribute this to imports of
gold without being able to demonstrate
how these three phenomena react one
on each other.
However, possibly the monetary au-
thorities may be fully conscious Of the
danger presented by the increase In
the plethoric stock Of gold held by
the Bank Of France. Although per-
sistent rumors Of the eventual con-
solidation Of the three months bills
which the French establishment of is
sue holds in England, and which
amount to about 10000. 900 pounds,
have been in no way confirmed, 1t Is
evident that the Paris government will
strive to the utmost to facilitate the /
investment of French capital abroad. |
The condition to this Is that some
settlement be made of the vexatious
question of double taxation, which cpn- j
tributes in great measure to the n
equal partition OF long-term capital |
the J8erld.
As for the stock exchange situation =
la France IL IN On tia Rad Ia a eoxn-