Evening star., 1936-09-27
FRANCE SHOPPING
IN OPEN MARKET
Devaluation Ends Long Fight
to Find Prosperity Be.
hind Import Quotas.
BY BLAIR BOLLES.

Frances long struggle to buttress
her domestic development behind walls
Of import quotas comes to an end with
devaluation and re-establishes her as
. vigorous buyer In the openly COM
petitive world market, foreign trade
experts in positions Of authority here
agreed yesterday.
Such . change In attitude should
mean concrete benefits to the United
States. This country Is still the lead
ing non-colonial supplier OF France,
but the course Of purchases by France
in America since the turn Of the
decade as traced by the Department Of
Commerce shows o 66 per cent decline,
thus:
In 1881 France bought from US
goods worth $500 million francs;
1882, 2,45s million francs; 1888. 2,l67
million francs; 1884. 2.ls0 million
francs; 1885, 1,774 million francs. The
total value Of all French imports from
all countries has declined from 26,43
million francs in 1888 to 2o.s45 million
francs In 1885, although the decline
by volume from 1884 TO 1885 was only
as per cent.
Stresses Treasury View.
This expectation Of q revival Of
commerce between France and, the
United States and among France and
other countries emphasizes the fourth
point in the Treasury Department
statement announcing the United
States cooperation in safeguarding
the devalued franc:
This Government Is convinced"
Secretary Morgenthau said. that sue
cess Of the policy set forth Is linked
with the development Of international
trade. In particular it attaches the
greatest importance to action being
taken without delay concerning the
present system of quotas and exchange
controls with view to their aboli-
non."
In its dealings with q nation like
England. which devalued the pound
Just i've years ago this month, the
United States has shown . con-
stantly increasing trade since 1888,
when Britain bought goods from US
worth 75,s13,00o pounds sterling,
compared with 87,502, 1000 pounds
sterling in 1885.
Again in the case Of Belgium. which
devalued the belga March 81. last
year, our exports show an increase.
Belgian purchases from US in 1894
amounted to 100000 francs, in
1888. 1,324.00o.00o francs, better
ment Of 1874 per cent.
The most obvious inducement to
French increase Of her purchasing
abroad on the heels OF devaluation Is
that the adjusted franc will make
buying in France more popular.
France put up her import quotas
because her export market was dis
appearing; nations with cheap cur
rency found it too dear to pay for
French goods.
The elimination Of the buying bar,
then. eliminates with 1t the import
bar. This Is step No. /. but the
business Of preparing France to
become active once more in world
markets through devaluation goes
much farther than this. according
to 0rosvenor Jones, chief Of the
finance division Of the Bureau Of
Foreign and Domestic Commerce.
Must Repatriate Gold.
FIRST, said Jones, devaluation viii
repatriate much Of the gold which has
been in flight from Paris. Since
August the Bank of France has lost
2,297. 100000 francs in gold; the re-
serve-although it Is 81 per cent Of
note circulation and deposit liability
and the law requires only IS per cent
lis less by $4,000. .ooo, 900 francs than
it was in January. and by 30,000,-
000, 900 francs than 1t was in 1882,
when United States gold was In
flight to Paris
The repatriated gold, it is hoped,
will be invested in French govern
mental securities and French COM
mercial securities: such search for
profitable employment Of capital in
France would, Of course, speed the
return Of prosperity.
The return of this capital, too, it
was said. would remedy . serious
dilemma Of the French government
its inability to finance itself except
through the Bank Of France, . quasi.
ofyicial organization controlled by pri-
vate enterprise for the most part.
The Blum governments attempts to
raise money from the people by an
issue Of baby bonds met . stone wall
Of popular refusal. Only 5000 million
francs worth Of the bonds were sold.
q negligible amount. The public mis-