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FRANCE

THE RECONSTRUCTION 1919

BROWN BROTHERS & CO.

59 WALL STREET PHILADELPHL\ NEW YORK

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BOSTON

UNIVERSITY OF CALIFORNIA AT LOS ANGELES

Gift of Oax^t. and Mrs. Paul McBride Perigord

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FRANCE

THE RECONSTRUCTION

1919

\ \ ) i '

imiVERSITY of CALU^OKMiii

AT

LOS AN€^LES

UBRA^y

BROWN BROTHERS & CO.

59 WALL STREET PHILADELPHIA NEW YORK BOSTON

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DIRECTION GENERALE

DES SERVICES FRANCAIS

AUX ETATS UNIS'

Republique Francaise

New York, November 2 1 st 1919.

Messrs. Brown Brothers & Co., 59 Wall Street. New York City.

Dear Sirs:

I have read with much interest your study on

the physical and economic reconstruction of France.

I believe that this indicates accurately the progress

which has been made in these directions since the

signing of the armistice and faithfully portrays the

situation in France at the present time. It gives me

great pleasure to give it my unqualified approval.

Yours very truly,

Director General of the French Mission in the United States.

FOREWORD

THE progress of the reconstruction in France during the past year is a matter which America regards with great interest. The return of the

manhood of the French Nation to peaceful occupa- 9i

Oi tions after more than four years of war, the rebuild-

tH (~ ing of the devastated areas and the general read-

P justment to peace conditions have not been unat-

^ tended by difficulty. However, the characteristic

vitality of the people is well illustrated in the solu- m 1^ tion which is being found for each of these prob-

feS lems. The international friendship of France and

•4-S America, strengthened by the association in the late

^ war, has linked even more closely than before the

interest and welfare of the two countries. The ex- tent, therefore, to which France has recovered from the world conflict is of unusual importance to America. The following study has been prepared by our Statistical Department.

BROWN BROTHERS & CO,

November, 1919

Copyright, 1919

by

Brown Bro-thers &■ Co., New York

FRANCE

THE RECONSTRUCTION

1919

MORE than a year has passed since the signing of the armistice and the liberation of the invaded areas of Northern France. The problems of reconstruction which faced the French Nation at the close of hostilities were far greater than those which confronted England and the United States. France had to solve not merely the questions of economic and industrial readjustment to peace conditions. In addition, she had the problem of rebuilding the in- vaded areas which had been devastated and, in gen- eral, of repairing the physical damage brought about by more than four years of warfare.

Rapid strides have been made in reconstruction since the conclusion of military operations. The work has been pressed forward with the energy which is characteristic of the French people. Much remains to be done, yet the progress thus far ma}^ be considered indicative of the future and the prob- lems which face France at the present time appear largely of temporary character. The recuperative power of the nation which was strikingly illustrated after the war with Germany in 1870 is shown in the speed with which the people have already progressed in the work of reconstruction and of national read- justment to peace conditions.

The transfer of the man power of the country from military service to industry and agricultiu-e has

7

been niacle with comparatively little difficulty. In spite of the fact that many industries in Northern France were destroyed the country has no special unemployment problem. The magnitude of this accomplishment may be realized from the fact that an army of nearly 2,500,000 men has been disbanded since the signing of the armistice. The industries, moreover, returned rapidly to a peace basis. As •early as February 1919 an official examination of

Barges on the Meuse Canal Near Rheims — 1919.

a number of government and private plants showed that in the preceding four months 1,300,000 em- ployes out of a total of 1,700,000 had been trans- ferred from war to peace pursuits.

Reconstruction of Transportation

One of the first needs of the invaded areas was the restoration of the means of transportation. On November 11th 1918 the destruction of railway prop- crtv amounted to 945 miles of double track and 463

I ■■^■^

Rebuilding Roads in the Invaded Districts.

miles of single track railroad not including 143 miles of road serving the mining districts. By September 1st 1919, however, 90% of the double track road and 93% of the single track road had been permanently restored. On the Northern Railways System only four miles of road had not been rebuilt up to that time and operation had been resumed on almost all the lines. Through trains are again being oper- ated between Paris and Brussels. The following table indicates in detail the extent of the rehabilitation that has taken place:

Destroyed Repaired to

Nov. 11th 1918 Sept. 1st 1919

Northern Railways — Double track 364 miles 360 miles

Single track 336 miles 336 miles

Eastern Railways — Double track 581 miles 493 miles

Single track 127 miles 95 miles

TOTAL Double Track 945 miles 853 miles

TOTAL Single Track .'. 463 miles 431 miles

In addition, of the railways serving the mining districts 114 miles out of 143 miles have been re- built. Moreover, of 1,160 railway bridges and tun-

9

Repairing Road m a Marne Village.

nels destroyed 588 have been reconstructed. The work on the waterways, which in France are an im- portant means of transportation, has been nearly completed. The operation of boats and barges from the Paris A^alley to Belgium and to Eastern France is proceeding under practically normal conditions. Fquipment for electric hauling is being installed on the Marne Canal to the Rhine and on the canal con- necting with the coal fields of the Saar. The col- lieries of the districts of the North and of the East can now be reached by navigable waterways. As far as highways are concerned a large part of the damage has already been repaired. There are about 30,000 civilian and military workers engaged in re- ])airing the roads at the present time.

Housing and Agriculture

The total numl^er of houses partially or wholly destroyed was approximately 550,000. It should be

10

rememl^erecl that French houses are Iniilt chiefly of stone. This has made tlie proljlem of repairs and new construction unusually difiicult. Up to Septem- ber 1st 1919, however, the following- results had been accomplished:

Temporarily repaired 80,000

Shelters provided 16,225

Shelters under construction 60,000

Total 156,225

1

Ploughing Battlefield Near Soissons — 1919.

Nearly a million of the ])eople who fled from their homes at the time of the invasion have returned and out of 4,023 communities which were invaded, mu- nicipal administration has been resumed in 3,872. Of the total area of the invaded territory of France

11

6,950 s(|uarc' miles of tilhible lands were devastated 1)\- niilitar\- operations. \)y Sei)tember 1st 1919, 1,540 s(|uarc milts, an area lari^'er than the State of Rhode Island, had been made fit for eultivation. Mneh of this work has been performed nnder handicap of l)arl)ed wire, trenches and the constant danger from unexploded shells. Since the signing of the armis- tice, however, more than 25,000 acres have been cleared of l)ar1)ed wire and aj)proximately 74,000,000 cnbic yards of trench exca\ations have been filled in.

Industrial Reconstruction

The industrial reconstruction in the invaded dis- tricts has also been going on rapidly. According to official re])orts, U]) to September 10th 1919 the fol- lowing factories had resumed operations partly or full}' since the signing of the armistice:

Textiles and related industry 124

Clothing 21

Food Supplies 41

Iron and Steel 51

AI achinen- 30

Chemical Products and Oils 10

Building Materials, Glassworks and

Sawmills 69

Miscellaneous 21

367

Of a total of 1,986 factories destroyed during the entire war 1,027 were again on a productive l)asis by Sept end )er 1st 1919.

Revenues and Expenditures — Taxation

The cost of the reconstruction is heavy. At the present time h^rance is reported to be advancing about Fes. 1,000,000,000 ($193,000,000) a month for

12

this purpose. The RepubHc has ah-eady expended more than ten bilhon francs in restoring the devas- tated regions. The expenses of the government for the year 1919 are estimated at approximately Fes. 16,- 500,000,000 ($3,184,000,000) to which should he added Fes. 4,000,000,000 ($772,000,000) for military pensions, etc. It is expected that in accordance with the terms of the Peace Treaty the French Govern-

CHART SHOWING THE PROGRESS OF

RECONSTRUCTION IN FRANCE

TO SEPTEMBER 1ST 1919

;M;mmMmmM^^^M^ GUMMUNI l ils INVAULU

1 MUNICIPAL ADMINISTRATION RESUMED

P^MMMM^J^m^^;^^™ DESTROYED RAILHUAUS

1 RECONSTRUCTED RAILROADS

W/////////////////////M//^^^^^ AND lUIMNLLb ULblKUYLU

1 BRIDGES AND TUNNELS RECONSTRUCTED

^^^^^M^M^^^MmMM^^HOUShb PARIIALLY UK WHOLLY UhblKUYLU

1 HOUSES REPAIRED and UNDER CONSTRUCTION

M^MMM^M^MMMM^ TILLABLE LANDS DEVASTATED

1 TILLABLE LANDS RESTORED

ment will eventual!}' be reimbursed for man}' of the expenditures which are now being made.

France has made great efforts during the present year to meet as large a part as possible of these ex- penditures by means of taxation. The estimate of receipts for 1919 is Fes. 10,000,000,000 ($1,930,000.- 000). This would make the French tax per capita on the basis of the total population vS.^2 as compared with $49 for the United States. In the case of France, however, it should be borne in mind that

13

t

Reaping Near F(

the inhabitants of the invaded regions are not being taxed in the present year. It has been estimated, there- fore, that on the basis of the actual proportion of the population laxed. the tax per capita is $56. The inserted chart shows the comparative amounts of the income tax now in force in France and in the United States. So far during the current year actual re- ceipts have been in excess of the budget estimate for this period. Collections of taxes have increased steadily with the progress of the reconstruction. In connection with the large outlay which the program of the government requires it should be remembered that France is no longer under the liandicap in re- gard to the collection of taxes that prevailed during the war. Before the war the invaded areas furnished from 20% to 25% of the total revenue of the country. The restoration of this territory in addition to Alsace-Lorraine and the fact that the man- hood of the nation is returning to productive pursuits will greatly increase the taxing power of

14

$22,000

20.000

18.000

16.000

14.000

X

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o <

10.000

8.000

6.000

4,000

$ 2.000

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CHART SHOWING THE AMOUNT OF INCOME TAXES ON INDIVID UALS(UNMARRIED)iN FRANCE AND THE UNITED STATES FOR THE YEAR 1919.

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the government. During the first eight months of the current year Fes. 5,100,000,000 ($984,300,000) were collected from taxes, representing an increase of Fes. 1,400,000,000 ($270,200,000) as compared with the corresponding period in 1018. In addition to this amount taxes levied on war profits during the same period produced h\-s. 1,()()7,U00,000 ($205,900,-

15

000) making- a total of Fes. C).167X)00,000 ($1,190,- 200,000). It is expected that after a year has passed the nation will derive in taxes about Fes. 2,000,000,- 000 (S38r),()()(),()00) from the invaded provinces and Fes. 1,000,000,000 (8193,000,000) from Alsace-Lor- raine.

Thrift The financial strength of France has always rested in the large amount of capital distributed among all classes of the population. Thrift is a national char- acteristic of the French people. Xo l)etter evidence of industr}- and thrift need l)e given than the record of savings bank deposits which for a population of less than 40,000,000 showed in 1913 more than 15,- 000,000 bank books representing Fes. 5,829,700,000 ($1,125,153,000). This compares strikingly with the situation in the United States in the same year where, all hough the per capita deposit was higher, the total number of savings bank depositors was onlv 11,097,639. The amount of securities held by

Photo by American Committee for Deva.statpfl France

Removing Barbed Wire.

16

the French people was estimated in 1913 at Fes. ILi,- 000,000,000 ($22,195,000,000) of which approximately one-third were securities of foreign governments and corporations. This made France one of the largest creditor nations in the world. In 1913 the annual savings of the population were estimated at a1)out $675,512,000.

Photo by American Committee for Devastated !• ranee

Reconstructed Farm Buildings Near Coucy le Chateau.

Position of French Government Bonds

A large part of the securities held by the French people is represented by the bonds of the French Government. These bonds or rentes are distributed among a great number of small in- vestors and hold a i)osition which in the United States would fairh' correspond to a consider- able proportion of the deposits in savings banks. This has given the rentes an unusual degree of sta- bility even in times when the affairs of the French

Nation were at a crisis.

17

Belleau Wood on the Right and on the Left

Plidlo liy AtiiiTicMM ( '(iinniitli'c for Devustated Fraiioe.

Temporary Homes in District of the Aisne. 18

Town of Lucy Le Bocage as They Appeared in 1919.

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Plioli) li\ Ainerican Committee fur l)c\a^itate(l Fraiire,

Type of Permanent Home Being Built in Invaded Area.

19

The following table shows the yield of Freneh VJo perpetual rentes at averao'e prices for the years from 1860 to 1913. The stability of this issue which may be considered representati\-e compares favorably with that of the bonds of the United States Government during the same period as indicated by the average yield of the principal outstanding bond issues:

French Z% U. S. Govern-

Year. Perpetual Rentes. ment Bonds.

1860 Franco-Austrian War ended. 4.33% 5.50%

\'^(o\ 4.38 American 6.97

1862 4.28 Civil 6.51

1863 4.39

1864 4.54 1865-69 4.36

1870 Franco-Prussian \\'ar. 4.77

1871 The Commune. 5.51

1872 Estal)lishment of die Repul)lic. 5.47

1873 5.34 1874-76 4.04

1877 4.27

1878 4.06 1879-80 3.65 1881 Zy:^

looZ-OJ Oj J *The comparison with

1 QQ/^ on 1 CC7 ^^^ bonds of the United

IcoO-JU O.J/ States is not continued

lom n- 1 r\r further since the war debt

l&yi-y.i J.UO of the I'nited States had

1 0C\r -r\r\ O n i practically been redeemed

ifeyo- (JU Z.'iH by 18S1 and the market

mm A" ■> rv"" prices of the bonds up to

IVUl-UO O.U.I the passage of the Fed-

1 i\r\r ■\ r\ '* 1 O ^''^l Reserve .\ct were

1 iUO-lU O.iU artificially stimulated by

1<)in 1^ \ ^9 '''^ circulation privilege.

The economic \itality of the French ])eople is in- dicated l)y the fact tliat ditring the war the country absorl)cd war loans amounting to ??) billion francs in rentes in addition t() temporary d'reasury Cer- tificates averaging about 30 billions. 1die last issue of rentes h:id more than seven milb'on subscribers. During the present >ear the sul)scriptions to Treas-

20

War.

5.79

5.33

4.89

4.75

4.65

4.31

4.20

3.54

Indian

4.14

Wars.

4.37

3.88

3.06*

ur}- Bonds for Xatioiial Defence have been extraor- dinary. In each of the months of July, August and September approximately Fes. 2,500,000,000 ($482,500,000) were subscribed. The loan of Fes. 1,500,000,000 offered by the City of Paris in June 1919 was many times oversubscribed. According to official reports, in the first eight months of 1919 the excess of deposits in savings banks over with- drawals amounted to more than Fes. 1,000,000,000 ($193,000,000).

Debt

During the war the total debt of the French Re- public increased about four and one-third times. This increase was less in proportion than that of the United States or of any of the larger Furopean nations engaged in the war with the exception of Italy. As of April 30th 1919 the gross debt of the Republic was approximately 534,843,000,000. Of this the external debt amounted to $5,147,000,000 and carried an interest charge of about $300,000,000. Ac- cording to official estimates the annual interest re-

Wine From the Vineyards of Southern France.

Unloading Steamers in the Harbor of Rouen.

(|iiireincnts of tlic foreign debt are far less than either the amount which, ])efore the war, France invested every year in foreign countries or the amount which was spent yearl}- in I'^rance ])y foreign visitors before l')]4. h^rom iIk- total of the external debt should be deducted S2,v-)45,1S7,()( )() consisting of advances of uione_\- and materials made ])y h^'ance to her allies. 'Idle net amount of the foreign obligations of the

21

French Republic, therefore, in May 1919 was only $2,801,813,000.

The following- table which is prepared from official data indicates the increase in the gross debt of France during the war period as compared with that of England and of the United States:

France England United States

1914 $ 6,598,436,200 $ 3,179,284,450 $ 1,282,044,346*

1918 28,452,710,000 36.120,369,892 21,075,931,189

*March 31st 1917.

The Peace Treaty

Lentil the settlement of the terms of the Peace Treaty the exact amount of money and materials which France will receive as an offset to the national debt remains to be determined. However, it should be borne in mind that whate\er is paid in the form of indemnity — at the present time the proposed amount is Fes. 200,000,000,000 ($38,600,000,000)— the loss of national resources incident to the war should be many times more than compensated by the recovery of Alsace-Eorraine and the control of the Saar Basin. Alsace-Eorraine has an area of 5,603 square miles with a population (1910) of 1,- 874,014. Before the war these provinces were agri- culturally self-supi)orting. With the development which took place in the steel industr}^ in France dur- ing- the war the mineral resources of Alsace-Eor- raine are extremely important. The deposits of iron ore in Eorraine are estimated at 2,330,000,000 metric tons occupying- an area of about 168 s(|uare miles. They constitute one of the principal deposits in all Europe. The output in 1913 was approximately 20,000,000 tons of ore. In addition, the coal pro-

23

duction of the Saar X'alley in 1913 amounted to about 16,000,000 tons. With the control of these lundainental raw materials France should assume a leading- position in luiropean industry. The potash deposits in Alsace-Lorraine are estimated at 300,- 000.000,000 cubic meters. It is prol)able that France will in the future be able to ex])()rt a considerable amount of this material. These provinces are im- ])ortant centers of the manufacture of cotton and

Dockino and Warehousing Facilities Near Bordeaux.

^\■()()len i^oods, g'lass, chemicals and (ttlu'r products. In 1912 there were 1.026 textile ])lants emi)loying- 76,328 persons. These included 1.900,000 cotton spindles which at that time were one-fourth the total number in France.

24

Speedy Recovery After Previous Wars

In connection with the present (lel)t of France there should be remembered the financial record of the nation after previous wars. In 1830. only fifteen years after the close of the Napoleonic Wars, prac- tically all the war debt of France had been redeemed. The cost of the war with Germany in 1870-1871 amounted to SI, 792, 424, 600 not including- the loss of the provinces of Alsace and Lorraine. In si)ite of the fact that the country had suffered from invasion the war indemnity exacted by Germany which in- cluding the interest amounted to Fes. 5,300,000,000 was paid in 26 months, or six months l)elore tlie due date. To do this France raised two loans. The first loan of Fes. 2,000,000,000 was otlered in June 1871: to this loan Fes. 5,000,000,000 were su1)scri]x'd and onh' 45% of the total subscriptions was allotted. To "the loan of Fes. 3,000,000,000 of Jul\- 1872 no less than Fes. 44,000,000,000 were subscril^ed and onlv 12'^f was allotted. The recovery from the War of 1870 as from the Napoleonic A\'ars was remarkalde and during the next 43 years France went through a period of rapid territorial and indus- trial expansion. In 1914 the national wealth of France was conservatively estimated at vS50,000,000,- 000 and the annual income of the French people at $6,000,000,000. After 1870 France made large addi- tions to her colonial j)OSsessions which in point of size in 1914 were second only to the l>ritis]i Fm]>ire.

Industrial Outlook

The iron and steel industries of France were great- ly stimulated by the war. The invasion of the min- ing and industrial districts of the North Ijrought to

2.S

the front the latent resonrces of the nation. New and larti-er tactories were built and deposits of iron ore i)articularl\ in Xorniandx' and Loire Inferieure were intensively developed. As a result the produc- tion of steel and iron in 1917 was equal to two- thirds of the tonnage produced in 1913. 'idiis illus- trates the remarkable possibilities of the industrial tuture of France now that, in addition to the re- turned mines in the North, she has obtained control of the immense resources of Alsace-Lorraine in iron

Ploughing by Tractor in the Valley of the Oise.

4

and of the Saar A alley in coal. The furnaces of the returned province of Lorraine had before the war an annual production in excess of 6,000,000 tons of pig iron. It is believed that France will hold the first place in luu'ope in the production of iron ore and the second place in the production of steel and pig iron.

The increased capacity in the production of iron and steel will probably be reflected in a general in- dustrial develojMTient. During the war the country

26

greatly increased its use of mechanical implements and labor-saving machinery. A demand for these things once created and maintained over so long a period of time may be expected to continue. This will mean a further enlargement of French industry. Moreover, with the demand for iron and steel goods, not only for the rehabilitation of Europe but in gen- eral throughout the world, France has the opportun- ity of eventualh' becoming a large exporter of these materials.

Agriculture

With the upsetting of the balance of consumption and production due to the war France has been re- quired to import food supplies and provisions in large quantities. This situation in connection with the need for materials for the rehabilitation of the invaded districts has been instrumental in depress- ing the rates of foreign exchange, particularly ex- change with the United States. As a result im- ported food has been made very expensive. Before the war France was practically self-supporting and

H , 1 1" \' e s 1 1 n ^ in

Valley of the Aisne.

27

the present position of exchange is serving as a stinnilus to resume the normal production of food products as rapidly as possible. It is not probable that the country will continue long to depend on foreign sources. At the present time the land is being cultivated with the same thoroughness which was characteristic before the war. It is believed that after one or two years have passed the country will again raise enough to support its entire pop- ulation.

France is a land of intensive agriculture. In 1914 it was officially reported that 58,678,576 acres or about 45% of the total area of the country was under cultivation. Large estates are not numerous. In fact one of the greatest sources of the strength of the French Nation has been its large class of small landowners. It has been estimated that there are twelve million householders of whom nine mil- lion live in their own homes. Although France proper is only about four times as large as the State of New York, before the war if was one of the lead- ing nations of the world in the production of cereals, wine and beet sugar. In 1912 on an area of 16,- 238,151 acres France produced 336,272,000 bushels of w^heat valued at S486,948,130. The vineyards in cultivation covered an area of 3.832,468 acres and produced 1,569,169,800 gallons of wine valued at $344,511,450. In the same year the production of sugar beets reached 7,354,748 tons from which about two billion pounds of sugar were refined.

Colonies

The colonial possessions of France will probably play an increasingly important part in the future economic life of the nation. They are rich in natural

28

\i lO — Vineyards; Wine Ready for Shipment.

resources and form a huge storehouse for raw ma- terials of which France and in fact all Europe stand in need. In addition they are a natural outlet for French manufactured goods.

The French colonies cover a territory one and one- quarter times as large as the United States and Alaska and have a population of approximately 58,000,000 people. They are in all parts of the world and in- clude large possessions in Northern and Central Africa, Southeastern Asia and Oceania. The possi- bilities of development of these lands are indicated by the increase of their total foreign trade during the war period. In 1913 the foreign trade of the colonies amounted to i?633, 500,000. By 1917 the total had reached $729,983,000. This was about one- filth of the total foreign trade of France proper in 1913. The provinces on the Mediterranean coast of Northern Africa appear to Ije in a position for earliest development. The most important of tliese is Al- geria wliicli is treated practically as a part of France. Algeria produces large quantities of cereals, fruits, wine, zinc and iron ore. llie forests cover an area of 6,559,500 acres producing an annual revenue of over a million dollars. Tunis is another important

29

French i)r()\incc in Xorlhern Africa, in 1918 its agricultural products were 9,406,292 bushels of wheat, 10.427,213 bushels of barley, 3,813,713 bushels of oats and, in addition, 14,555,800 gallons of wine and 3,900,000 gallons of olive oil. The estimated date crop for 1918 was 88,184,890 pounds. The value of the mineral output in 1917 was al)()ut $13,000,000. Algeria and Tunis have developed a large railway

Morocco — Old and New Methods of Harvesting

30

milea.q-c in recent years. At present there are over 3,000 miles in operation in these provinces. The trade of IMorocco increased a1)<)nl three times in the years from 1911 to 1910. In 1911 the foreign commerce amounted to $17,000,000. In 1913 it was more than $34,000,000 and in 1916 the total was approximately $60,000,000.

The tropical possessions of France furnish large quantities of rubber, rice, raw silk, palm oil, sugar and similar products. Annam, one of the provinces in French Indo-China, produces more than 800 tons of raw silk annually. In 1916 French Indo-China exported 1,345.360 tons of rice. New Caledonia, a French possession in the Pacific, produces in normal times a substantial part of the world's supply of nickel.

Foreign Trade

The indications are that France will engage more actively in foreign trade than l^efore the war. Her control of basic materials stimulated by a wide de- mand, |)articu]arl\- in .Vsia Minor and the Far h^ast where France has increased the sphere of her trade influence, should have a decidedly favorable efi'ect on the foreign commerce of the country. This in turn would serve to counteract the unfavorable trade balance and consecjuently to restore French foreign exchange to a more normal position.

The facilities of France for foreign trade as far as ports and shipping are concerned were greatly de- veloped during the war. According to Lloyd's Reg- ister of Shipping the total tonnage registered under the French flag in the present year is larger than in 1913. In June 1919 France had more than 2,000,000 tons of shipping which does not allow for the ton-

31

Port of Marseilles in 1919.

32

nag-e of German ships she is to receive under the Treaty of Peace. Bordeaux and Marseilles, the principal ports, have l^een enlarged and splendidly equipped. Nearly six miles of modern concrete docks were constructed during the war at Bordeaux in addition to large warehouses and railway ter- minals. Bordeaux is the Atlantic terminus for many Continental trade routes to Great Britain, Africa and the Americas. jNIarseilles. which holds a correspond-

Dccks Near Bordeaux.

ing position for the Alediterranean countries, is at present actively engaged in the development of her large natural port. Three and three-quarters miles of quays are under construction and at the present time there is a program which aims to supply the port with 20 miles of quays as compared with 8% miles existing before the war. Under the terms of the Peace Treaty France is to acquire all the former German interests in the port of Rotterdam. This

33

port with its facilities for river transportation is con- veniently situated to serve Alsace-Lorraine and should be of great value to French commerce of the future.

Conclusion

France has earned the confidence of her allies in the great war. There is no reason why this confi- dence should not be fully maintained. The military and economic vitality of the Republic surmounted the trials of the critical moments of the world war and that same vitality is now surmounting the much smaller problems of reconstruction. Whatever the burdens which the war has imposed on France in common with the other nations engaged, France has demonstrated that she is al)le and prepared to carry them. The record of her achievements in the war and. since the signing of the armistice, in peace IS convincing evidence of the strength and the solid- ity of the nation. The people have recently given their answer to Bolshevism b}' returning an over- whelming majority of the sui)porters of the govern- ment in the national elections.

France will recover from this war as surely as she has recovered from previous wars. With the present opportunity in the fields of industry and trade the new France should become greater even than before. America is deeply interested in the recovery of France and of Europe if for no other reason than that she has made a national investment in Europe which in advances of money alone amounts to ap- proximately ten billions of dollars. The restoration of normal conditions in France is only a matter of time and is a prol)lem which France herself is capa- ble of solving indei)en(lently. However, the more

34

rapidly this restoration can be accomplished the greater the advantage to America and to the world as a whole. To the people of the United States is given the opportunity of lending" their help and re- sources to bridge the transition period and thereby to bring about in comparatively little time the com- plete restoration.

35

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