Show CAPITAL NOW V FLOWING BACK iNTO FRANCEN FRANCEa FRANCE N Na Nation a ti t I Io o 0 II 11 May lay ea Storm Without Foreign Loans By Dy GER CERILLE Rc Ono One of ot the Foremost t Journalists Journalist of Special Radio Kadio Dispatch to Standard Examiner Copyright 1926 by Press Association PARIS Aus Aug 7 1 France 7 7 France rance has got gota go goa soa a gnu crip on herself In the last three Weeks The mere mero fact tact that the gov- gov government gov government obtained large has calmed tho the troubled d atmo- atmo atmosphere atmosphere sphere Public opinion which was a on the brink ot of o panic p haa ha been reassured with the aid of the whole press which has haa co operated co magnIficently With confidence restored ex- ex expatriated cx capital is flowing ing Into int the county again while even enn foreign speculators are arc bulling the franc Doubtless some rome clouds still are arm discernible on the tho h horizon but tho thi movement should be bo ed abroad for anarchy Is wherever It appears and should France Franco again relapse In that tHree direction tion the consequences would be b felt In tho remotest corner of the tic globe Franco France needs foreign help heir belto to avoid that fate fale TAXES TOO HEAVY JIE y The taxes voted this week arc arc antoo too heavy Combined with the In- In In Increased increased creased discount rate and the ris- ris risIng ris risIng log Ing cost of ot living they Inevitably mean new note Issues or economic stagnatIon which would reduce thc tho tax lax yield Unlike England and Ger many more than a I third or 01 o busi busi- business busness Frances France's revenues depend on ness being good Fortunately the th tax load can be reduced In the next bUdget Furthermore the tho Institution of a Especial specIal sinking fund tor for redemption redemption tion Ion of the short term debt would bo be surrounded with au all the solemn solemn- solemnIty solemnity solemnity ity of ot the congress of ot Versailles as asat asat asat at the tho election of a president But BulIt It Is a It notorious historical tact fart that debt amortization whether Internal or foreign has never ne been entirely successful u s The United States now Is sue sue- succeeding suc succeeding in retiring its Internal debt thanks to unusual President Coolidge himself says that the la last t three years were more prosperous than any similar period pe- pe relod nod lod In American history The United States i is the tho creditor or of everybody with a I large rge favorable fa trade balance which makes p ble ssi- ssi ble tho the reduction of taxes It Is quite different In European countries like lIko France Franco and Belgium The rhe latter Instead of redeeming its short term debt has resorted to forced consolidation which Is equivalent to bankruptcy toward its note holders and which will vIll pre pre- prevent prevent pre prevent vent recourse to Internal borrowing for many years Franco France will arrive at the same sameI I by redemption for what Is the tho use usa o of redeeming an Internal debt placed at a a low rate rato of Inter Inter- cst iner eEl if it Is necessary to borrow abroad or at homo home at a much high high- higher er Cr rate in order to do so obvious Obvious- Obviously obviously ly I Franco France must forego further bor- bor borrowing borrowing bor borrowing rowing even for reconstruction of oher her devastated de regions This Is the only point on which the government departs from the experts plan There has been no conversation con yet with Secretary ot of the Treasury Mellon and ratification ratification tion lion of the debt agreement remains postponed until autumn SINKING G FUND The experts proposed n endon-n endowing a sinking fun fund with wiLls four tour billion francs of foreign loans The sov- sov gov government lays this proposal aside SImilarly the experts to give great great- greater greater er or elasticity to tho the treasury pro pro- pro proposed posed diminishing the tho advances of the Bank Dank of France to the state te by to three billions to be obtained from the first proceeds of financial oper oper- operations operations oper- oper operations abroad and Indicated that foreign loans for tor stabilization ought to amount to Although h there Is talk of ot dollar and florin credits all this part of ob- ob ob the government plan remains retire It depends on the iono tlona tion Secretary Mellon may have here alter after return from Rome nOlUe It d also on the efforts eUort by the Fren h this summer to restore their finances It If the reflux of capital as are a Ye- Ye re result nut sult of Increased confidence s the tho Bank Banic of Franco a substantial surplus for tor maneuvering maneu fund In Inthe inthe Inthe the next few weeks stabilization night be accomplished without foreign credits and these recommendations recommendations of the experts would become superfluous |