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Show FRENCH FftCE" Recent Election Results i Declared to Have Sta-j bilized Politics and En-1 couraged Business Men. Reconstruction Problems Are Being Taken Up With Resoluteness and Leaders Are Hopeful. 'l'AUES, !(. J7. -France, wti! br-in the iif-w'W'iir wit.Ii f:sr greater confidence than flu- ia--t. ' Thin is in spitfj ui i'orniklahle handicaps .such sis the balance of trade running rnrain.si thorn at the rati: of about I I.".iiij,iioiil!i!!0 ('rant'.-. n month, ahout fi per rent .(Inpi-i'cliitlnn or the exchange value of the i r; i iir, tlvi roriM-ipicnt difficulty ill' pronii-i iik r:i w mnt'-ri;iU and machines urgently needed foe reconstruction. I'Yauoe'-i re i it-wed con fide nee is derived ilii'fcily from the result of the recent eltc-liutc;. eltc-liutc;. T!ie;;e ;ire regarded hero as having definitely siuliiiiv.c-l internal politics, ended end-ed all tinnier of revolutionary agitation fur fomo (iuir- to cutne, and brought ahout a ijrtler attitude by capital and labor toward to-ward the immense effort, before France. .Moiu-y Is forthcoming for investments in anything that promUes strihillty. While lnvcstno f i L in .short-term treasury bonds are continuhiK at the rate of nearly 2,000,-(iou.iKkj 2,000,-(iou.iKkj of franc.s a month, there is plenty of 'money tr industrial and commercial enterprises and ion term loans. The -l.nue.tMKi.D'iri-frane loan to provide immediate imme-diate ' resources for indemnifying victims Vf " t tie invasion -was oversubscribed before be-fore the official opening of the subscrip-tkH.- Important banks and industrial rum panics have lately increased their rapiitul to an ugrega le of nearly GOO, 000,-ouii.Oon 000,-ouii.Oon francs. UPWARD TENDENCY REMAINS UNCHECKED. Transactions on the Varls bourse, which Si ill sire confined to cash deals, have ex-t;i ex-t;i i'Ld on cer; a in days records of pre-war pre-war trading, when futures entered largely into the totals. Tile upward movement of all industrials which he.-uui before the signature ot the t reat y a t Wrsiulles has been unchecked by successive liquiila t ions. This is re-wn re-wn rd ed by keen observers here as a sure si.e n of economic recovery. 1-huployers say the labor situat ion is im proved, and that the last strikes developed de-veloped .symptoms that the workers themselves them-selves were becoming wenry of long-con tinued dist or nances of business, industry and transportation. They see a tendency against frivolous strikes and an indication that, only real grievances will induce the wage-fiirners to quit work hereafter. . decentralization of capital and industry is seen in the establishing in Normandy i f textile industrits to replace those .in the occupied territory destroyed by t he-war. he-war. This movement has been greatly extended by development of water power-in power-in the region of the Alps and the center and south of France. Industrial leaders say that no particular region of France hereafter will monopolize any industry, and declare that this scattering will prove beneficial and result in a more equable recovery of a!l parts of the eountiy. GREAT ENTERPRISE BEING BROACHED. 1'ow erf id financial groups are at the head tf a movement to transfer important industries from the coal region to southeastern south-eastern France, where water power soon ; wih 'be available. Other groups sire being formed to deelop manufacturing1 centers cen-ters near the coast so as to reduce the cost of transporting raw materials. industrial in-dustrial leaders say that this aetlvltv on the part of capital, supported bv the re. overy of labor from what has beeen eha melt rized as a wave of "laziness," gives a healthy tone to the situation. Instability of the exchange' value -of the franc is regarded as one of the weakest points in French conditions. . U- is pointed out that France cannot pay twice over'j at present high prices for supplies she needs, and that is what the present low value of the franc means. The French government is now studying h complete renovation of her financial policy with a view to making such provisions to meet her ob.i-ations as will give greatest stability both at home and abroad. NEW FINANCIAL POLICY FRAMING. TVtaiis of the new financial policy ar.e as yet not d'seiosed. but it Is understood that it comprises, firstly, a large interior loan to take up all short-term bonds and floating debt: and secondly, important Increases In-creases in ail taxes to bring the revenues up to the annual budget estimated to require re-quire 20,i'ini,uto,u00 to 2."i.000,nno,0ou francs. U is not cpeeted that any internal financial finan-cial arrangement can exert more than ; moral influence on the value of the franc abroad, and this may be said to be the object of the greatest anxiety in official The building trades do not show anv c'sposit ion to uudertalic important work -while obliged to pay three times the normal nor-mal .pnets for materials. The result is thai reconstruction work is being held up. although considerable progress' is reported re-ported from some sections or' the invaded regions. This progress, although encouraging, encour-aging, is not regarded by business men as sufficient to warrant the expectation t!i at France will be enabled at nn early date to ivsumc export a I ions on a scale sufficient to materially affect the ex-thange ex-thange rates. The French still are counting count-ing on some sort of international arrangement arrange-ment that will increase the value of the franc. PERET CONFIDENT OF THE OUTLOOK. "With capital and la "or both ready to do their bit," ssiid Haoul Perec, chairman of t he appropriar ion committee of the chamber of deputies, to the Associated. Press, "all that re ma ins to enable cs to get firmly on our feet is for the world to give our money sonic tiling like sin equal show in all markets." French observers ob-servers regard it as extremely important that .Franc shall he enabb-d to purchase r.cw materials on an equi'iU'ie basis. They s:;Y this is shown by the fact that beijre the war three -fourths of lur exported ge ds were man ti :': t ured objects, and t oat this proport ion must be increased in tin- future to make 'up for the loss c-f the ma rite t Cm wim-s and spin's in America and Itusia, which formerly const !U; ted the Important share of the total of French exports. Pevenne from lourits which was a potent aid toward maintaining t lie equilibrium of tb franc until the war. has not yet g i ven the exacted help. Ind : cations ca-tions are been of an influx of foreign visitors 'early in the new 'yenr. but present disposition in pfficial circles eeins to. be not to wait for 'its development, .'but to talte measures to improve aH needs inde-;pendently inde-;pendently of this source of income.' . ,. Economists and financiers, who have Avtt-ghed aii the elements of the situation, admit that France. still is in a. most dfffi-' cut situation,, but see indications of great, improvement 'before the end of another 'year.- |
