Greymouth Evening Star. AND BRUNNERTON ADVOCATE. FRIDAY, NOVEMBER 6. 1931. FRENCH FINANCE.

Greymouth Evening Star, 6 November 1931, Page 6

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. FRIDAY, NOVEMBER 6. 1931. FRENCH FINANCE.

PUBLIC attention has been so en-

grossed, of late, on Empire affairs that developments in U.S.A, and Europe have not been given lhat consideration their importance deserves. Just as things have taken a decided turn for the better in Britain, so too have the happenings elsewhere been in a satisfactory direction, so far as international co-operation is concerned. The agreement to an armaments truce for a year is most welcome, as it may lead to a much greater “holiday,” much to the benefit of all the nations. The League of Nations appears to be paving the way for a peaceful settlement of the Manchurian dispute, and the most urgently serious problem, to-day, is the financial crisis in Germany. Reports affirm that France developing a more sympathetic attitude towards her defeated neighbour, and may prove less obdurate regarding revision of the Versailles Treaty. It is doubtful if France will be spectacularly generous, as even if she' had the will, her power may be questioned. Owing to the large hoardings of gold by the Bank of France, and the fact that for the lime being, France i.s, a creditor nation, false impressions are general about French prosperity. For example, unemployment in France has consistently been understated by the Government, whose official :

figures, six weeks agOs gave about 40,000 as the total of unemployed. The French trade unions declare

that the real number exceeds a million. Perhaps, the truth will be found nearer the latter total, as a -cablegram, this week, stated that the French Cabinet had approved an appropriation of 30 million pounds for the relief of the unemployed.

Some British financial experts make no secret o£ their belief that hard times ate ahead for France, whose budget deficit is variously estimated at from 50 to 100 millions (pounds). Trade figures, too, are far from comforting. For the first eight months of .this year the shrinkage in French exports was nearl.v 30 per cent. Imports declined by 15 per cent. The Tinpleasant fact is that a large adverse trade balance is accumulating. For two-thirds of the year it exceeded £70,000,000, and at this rate the trade balance against France may total £100,000,000 at the close <?f the year. Any imposition of a system of tariffs by Britain would increase French trade difficulties. Last year French exports to the United Kingdom were nearly £50,000,000, a large portion being luxury goods. Remedies suggested include lowering production costs generally, and there seems little hope, at present, for France to evade wage-reductions and increased. taxation. It will be interesting to note if the French statesmen and people, rise to the occasion, as the British have done. France has had a previous experience of watching the franc’s value rush downwards, and any further attempt at inflation will’ make foreign investors wary. They lost enormous sums before owing to French financial tactics, and are unlikely to be caught again.