The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-09-30
BY RALPH HEINZEN
United Press stan Correspondent
lcnnuripht. 1921. BY United Pressl

premier of France, in an exclusive
survey of world financial and eco
nomic troubles for the United Press
today, declared his faith in COM
plete recovery.
He furnished an answer to the
problem which has bothered many
economists as to why France, APP
parently is rich and busy, her work
ers fully employed, and her mills
and factories humming, while her
neighborS and America are suffer-
ing from trade depression.
II have no doubt that world COM
merce and industry eventually will
recover from its present troubles
and, perhaps, be stronger than ever.
But other countries first must make
sacrifices as great as France made
in 1926, and finances must be re-
stored to a healthy condition by a
sane compression Of expenses to rev.
enue," Laval said in summarizing
his opinion.
France Still Agricultural
Frances present good fortune is
due, in his opinion, only to a care
full balancing of her disbursements
and resources, following sacrifices
made in 1926 when France agreed
voluntarily to stabilize her franc
on a gold basis at one-f1fth Of its
previous value.
In his survey he based the
present French banking, commercial
and industrial strength on the fol-
lowing foundation:
/. France has remained agri-
cultural, despite her tremendous in
dustrial and commercial expansion.
Diversified agriculture never knows
depression.
2. Sensible protectionism. France
has a tariff barrier which is de-
signed to protect both farmer and
manufactures. Thus wheat in France
is selling today at $1.70 a bushel,
compared with less than so cents in
Canada and the United States.
immigration Restricted
3. Careful control of immigration
and limiting foreign workers by
labor permits to those trades only
needed by French industry and agri-
culture. Four million foreign work.
ers have been repatriated since the
world trade slump started and
France has but $4,000 unemployed
men and women workers on dole.
4. Courageous welding of the
economy AK by Poincare in 1925
when all spending departments of
the government found their funds
slashed by decree. At the same time
Frenchmen were charged with
further heavy taxes which obliged
a great national sacrifice.
5. The maintenance of an armed
force sufficient to oblige the respect
of frontiers and neighbors, thus as
surfing French industrialists, peas
ants and business men of safety
and creating a sense of security and
public confidence. French investors
repatriated enormous holdings, par
ticularly from London, Amster-
dam and New York.
Safe Financing Helped
6. Safe, sound financing and care
1ul Va 1l4NCONlAACAAO AAActA M Va
and foreign loans, which now must
have the governments sanction. AS
a result the Bank of France has &C
cunulated the second greatest gold
horde in the world, now more than
5e,000,000,000 francs. The famed
"woolen sock" of the French peas
antry is again fact, not legend.
Laval laid great stress on the fact
that France underwent her rapid
period of depression in 1926 when
the franc fell in the world exchange
markets to a point where so and
more francs were bid for a dollar.
Poincare, recalled to office and
given almost dictatorial powers, set
about balancing the budget by the
creation of billions of francs of new
taxes and cutting state expenses by
SO per cent. AS a result, he was
able to stabilize the franc two years
later.
Peasants Horde Savings
Laval pointed out that after that
drastic financial operation which
meant a heavy personal sacrifice to
every French family, the nation
financially vast in excellent health
AS a result, when the world de-
preston started, France felt moth
ing and the only slackening OF
trade today is due to the loss
of foreign markets where the crisis
has weakened the buying power.
The great mass of French peas
ants holds-the national fortune. The
great proportion of savings is in
their hands and the traditional
''woolen sock" is filled to overflow
ing. awaiting chance to participate
in some foreign investment which
has the approval Of the govern
ment.
Afford JobleSs Relief
Already only five years after the
worst financial troubles in her his
tory, France has re-established hel
wealth so solidly that since 1925
She has lent l6,000,0o0,000 francs Il
her neighbors, including England
Germany, Poland, Finland, Austria
Hungary, Yugoslavia, Greece, Ru'
mania, Bulgaria and Czechoslovakia
They are paying her from S% tC
7ls per cent on the loans.
Railroad earnings and car load
ings, always an indication of do
nestle prosperity. are shown BY
the latest government reports tC
be IL per cent in excess Of 1880.
Unemployment IN mid-Septembei
was estimated to total less thar
a00 O00-that figure including those
prking less hours than normally
So 49, ssIaxTeS