France; the reconstruction 1919

FRANCE

THE RECONSTRUCTION
1919

BROWN BROTHERS & CO.

59 WALL STREET
PHILADELPHL\ NEW YORK

■■ /

BOSTON

UNIVERSITY OF CALIFORNIA
AT LOS ANGELES

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

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FRANCE

THE RECONSTRUCTION

1919

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i '

imiVERSITY of CALU^OKMiii

AT

LOS AN€^LES

UBRA^y

BROWN BROTHERS & CO.

59 WALL STREET
PHILADELPHIA NEW YORK BOSTON

ii4^v^if\

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

<

12.000

o
<

10.000

8.000

6.000

4,000

$ 2.000

>

/

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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/

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/

'/

/

/,

7

f

y

/
/

i\

f

y

f i

/

/

/

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o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

C\J

m

INCOME

LO

f£>

r^

CO

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.

k

^

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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