FRANCE FEELS DEPRESSION

Evening Star, Issue 20558, 9 August 1930, Page 2

FRANCE FEELS DEPRESSION

“ Is France at last being attacked by that economic depression which is bolding nearly all other countries in the world in its deadly grip?” asks the Paris correspondent of the _ ‘ Daily Chronicle.’ Be proceeds to give the following facts:— Here are the latest export figures:— Millions of francs. February ... 4,017 March 3,958 April ... 3,887 The “rot ” has set in. For the first four months of the year imports have fallen by 1,796 million francs and exports by 834 millions. Taking' the average monthly exports of Great Britain and France per head of the population for that period, we find that' “prdperous’ France exported ; goods to the value of 15s 3d, while the figure for Great Britain, in the trough of the economic wave, was 33s 3d. Turn to some of the big industries, and, first of all, to the highly important business of motor car manufacturing. ' Une firm, which employed about 60,000 workers a year ago, has now only 18,000 at work. Another has reduced its staff from 32,000 to about 20,000 in the same time. WINE AND MOTOR SPIRIT. The great wine industry, too, is in a very Bad way, in spite or an amazing attempt at assistance by the Government. Over-production, in this case, too, has been tremendous. To relieve tb s situation, the Government hit on the strange idea of buying nearly ninety million gallons of wine and turning it into motor spirit! The spirit had to be sold for less than the Government gave for the wine! (The taxpayer pays the difference, of course). But, on the eve of another bumper wine harvest, the wine growers have still about four times that quantity left on their hands. ' GOLD—AND PAPER. For a while many French papers prattled about the country’s gold reserves like children pleased with new soys. Paris was quickly going to take Ijondon’s position as a money centre. But, all the same the French cover for note circulation is 50.97 per cent., while that of Great Britain is 56.05 per cent. While France, too, has been piling up gold, she has been indulging in something like inflation. At the end of 1928 her note circulation was sixtyfour milliards of francs; a year later St had grown to 67.2 milliards, and

now it is 71.1 milliards, an increase of over 11 per cent. Naturally this tells on tho cost of living, and, says ‘ Aus Ecoutes,’ a live weekly, “ we are absolutelj convinced that if the Government does not take steps to fight this evil, strikes wifi multiply, above all in tho State services.” The latest weekly railway returns show that, with the exception of the State lines, all the other ( six companies had to report a decrease in traffics, amounting in the case of the Eastern Railway to 8.15 per cent., and in that of the Northern Company to 6.39 per cent. A MONTH’S TAXES. Revenue returns tell the_ same tale. A well-informed financial journal states that in April, 1930, as compared with April, 1929, there were the-fol-lowing big declines in taxation receipts : Millions of francs.

Stock Exchange transactions • 19 Luxury tax ... 1 Import duties 132 Business turnover tax 22 Sugar tax ... 65 State monopolies ... 18 In all, the falling off was 300 million francs (£2,400,000). “That,” the journal comments, is very direct evidence of. the general decline in business, evidence which was emphasised by the recent trade returns.” So it is clear that the world-wave of economic depression is beginning to sweep over France.