Evening star., 1950-12-24


foreign trade, France has done
surprisingly well. particularly in
the past few months. Her export
surplus with European Marshall
aid countries has been sufficient
to earn her a $l32.9 million credit
balance and payment of $28.e
million in gold from the European
Payments Union at the end OF
the first four months of it's opera
ton. But her deficit with the
United States and the dollar area
is still huge, and is improving at
a much slower rate than Britain's
Domestic Production Up
Domestic production has shot
up Is per cent above the 1898
level and has nearly reached the
inter-war peak attained in 1929
Unemployment figures are as
toundingly small compared with
any other large, industrialized ma
ton. There are about $4,000
people receiving unemployment
benefits and an estimated addi-
tional 10000 jobless, a very small
number for an industrialized ma
ton with 100000 population.
On the other hand, the national
treasury is, as always. hard pressed
There is certainly some waste,
ineficiency of administration
and much duplication of ef-
fort. but the main reason is that
Frenchmen do not pay direct
taxes if they can possibly find a
way out. 1t has been estimated
that the tax collector was this
year cheated out of about 400 mil
lion francs, a sum that would &c
long way toward covering next
years anticipated deficit of 56i
million francs. The Finance Min
istry hopes to cover this deficit or
the following basis: New taxes
100 million francs; governmental
economies, 10 million, and new
government loans, 300 million.
Serious doubts have been cast
on the Finance Ministry's ex-
pectations. There is bound to be
a bitter political dispute, which
could bring down the government,
over whether the new taxes should
be spread throughout the nation
or be aimed mainly at the rich
through luxury and excess-profits
taxes. There will be a demand
from the right that the money be
pared from social security appro-
priations and from the left that
it be taken off huge incomes and
conspicuous displays of wealth.
The galloping imitation that
racked the country from the lib
Grafton to 1948 has been slowed
to a gentle walk, although prices
have recently begun to rise rapidly
again in some sectors. This is an
important factor on the credit
side. but the psychological effects
of untrustworthy money still lin
ger and those Frenchmen who
still do save are reluctant to trust
their savings to banks.
AS the result Of this and q con-
tinued lack of confidence in the
nations prospects. aggravated by
the fear Of war, there is a short
age of investment funds and an
unwillingness. partly new and
partly traditional, to launch new
enterprises.
Lack Investment Funds
There is a spread between in
come levels in France that would
startle any present-day Briton.
we'll -to-do or poor. The huge group
of Frenchmen who come under the
classification Glow incomes" spend
an average of 80 per cent of their
income on food. not because every
thing else is cheap, but because
they consider food the most es-
sential of essentials. At the other
end of the scale there is a small
group of Frenchmen who not only
keep the Partisan luxury trade in
business by their patronage, but
who can permit themselves. in
private, to complain about Mar
shall Plan spending in France be-
cause I'VE have sent a lot of money
to America. We have to pay Amer
lean taxes on it, and they are too
high as a result of things like the
Marshall Plan"
The intensive productivity cam
paign that has helped Britain to
recovery by raising output has
only just begun in France. 1t is
making little headway because of
an almost insurmountable barrier
the fiat refusal of the nations
main trades union, the Commu-
nist-dominated CGT, to have any
thing to do with it and the CGT'S
countercampaign to denounce any
productivity recommendations as
speedup measures harmful to
labor.
Nevertheless, France produces so
per cent more electric power than
in 1888, an important index of in
dustrial activity and capacity. It
has already accomplished huge
projects OF industrialization. re-
construction and re-equipment
under the Monnet plan, and
more are under way. Hous-
ing, which Jagged sadly and
had an insufficiently high priority
to begin with. is now receiving
more attention, although there is
not yet the spate of new building
France needs.
To sum up, is France well of