Evening star., 1932-04-17

/ bated in the past II months and
nowhere more sharply than in
the United States, where the problem
of debts impingeS. On the one hand
washington has had the picture of
France almost groaning under the
weight of accumulated gold, and on the
other statement that without German
payments she cannot meet her Ameri-
can and British debts.
When one examines on the spot the
question of French prosperity 1t be-
comes clear that although the economic
blizzard reached France at least year
later than any other nation and even
up to date has not produced the raw
ages discoverable In Germany, Britain
or the United States, nevertheless,
France has been hit and hit hard Un-
employment, an unbalanced budget, a
rapidly declining foreign trade, to these
universally familiar evidences are added
the equally disasterous details OF an
Sbsence of all tourists and catas-
trophic decline in the returns from
foreign investments.
Measured by unemployment, the Gus
tomary barometer of contemporary mis-
fortune, France appears on the surface
rot too badly off. Her figures for those
drawing relief from the government are
still little above 300 900. and although
unprecedented for France they appear
almost insignificant in the face OF the
three. six and eight millions Of Britain.
Germany and America. respectively. But
in reality there are at least million
out of work and many estimates are
higher.
Half Population on Farms.
To a degree France profits by the
anomalous fact that she imports at
least 100000 of her workers and
these aliens are not only entitled to
state relief, but also are repatr1ated
when hard times come The pull on the
French treasury is therefore nothing
like that on the pockets of other great
countries. This situation is further af-
fected by the fact that almost exactly
half of the French population are on
the farm and the proportion of peasant
owners is unparalleled.
France has then an enormous capac-
ity for enduring hard times on account
of her agrarian population. Again, of
all the greater powers she is the least
ir1duStrialized. Even in this modern
age of machinery she remains coun-
try of small businesses and little farms.
Nevertheless in iron and steel she has
passed Britain and in textiles she is a
great exporting country and today iron
mines and foundries of the East and
the textile factories of the North are
rapidly running down.
1t is, however on the side of tourist
trade that France is worse hit. Paris
is almost as empty of foreigners as dur
ing the first years of the war. The
hotels are suffering beyond exagger-
alton, the great shops and dreSSmakerS
are doing next to nothing; the Riviera
has had the worst season in history,
the promise of Summer tourists is dying.
A few Germans, a handful of BritonS
still come, but the Americans are hard
to find. AS for the theaters and the
cafes, they are moving toward bank
ruptcy with equal pace, and Paris has
Just escaped a lockout of the former
because taxation makes profit impos-
Sible
Pinch Sharply Felt.
Thus the little man and woman are
feeling the pinch sharply wherever their
livelihood depended upon the rich visi-
tor AS for the billions of gold heaped
every one knows that large portions of
this belong to citizens of other states
who have hurried their last reserves out
of their own countries to deposit them
in the one country which still seems
sound. And as a result the slightest
doubt in the invflnerability of the
franc might start a migration of gold
of large proportions. AS a consequence
the heaps of gold which excite wrath
in the United States Senate, when debt
debates are on. cause worry here.
1t is true that budgetary deficit of
only $4,000, 900 this year and even of a
prospective shortage of $500, 900. 900
next do not seem staggering in the face
of American prospects. In fact, but
for the collapse of German payments
the French budget would still balance
this year without new levies. But in
considering the prospect of new burdens
and sacrifices the French taxpayer re-
calls that he has already agreed to
capital levy of four-f1fths, representing
the devaluation of the franc. Thus any
new reduction would be unthinkable.
Moreover. Americans, considering the
comparative rates Of taxation of France.
Britain and the United States must
reckon on this detail of devaluation.
Imports Cut Down.
Now in this crisis the French govern
ment is following the example of all
others, it is cutting down imports, rails
ing new barriers to the inflow of all
goods France can herself produce re-
sorting to quotas to obtain counters
balancing markets for French exports.
And the entrance of German manufac-
lures is being deliberately fostered at
the expense of all others to build I'D a
body of trade which might be the basis
for future reparations in kind. Again
as a Self-contained country France can
carry the policy of economic isolation
much further than Britain or Germany
or even Italy.
What you feel in Paris. as all over
the continent, is that an incredible
phenomenon of abolition of inter-
national trade is in progress. Nations
are more and more refusing to take the
products of others. Export trades of
all nations disclose the same steady
Shrinkage.
Moreover, all over Europe there is
common campaign for the exclusion of
all the various American things which,
particularly in the postwar years. have
gained such a wide marKet Some of
our raw materials Europe must still
have, but unless the tide turns soon
the day of the American automobile
typewriter, etc. is about over and
Europe will put up with It's own inferior
products or at most ration imports of
American goods to balance American
consumption of European goods.
In the presence of this crisis, Ameri-
can observers from a distance have con-
cluded that changes in French policy
were likely and particularly in the mat
ter of Germany. 1t is certainly true that