Paris, Dec. 19.
The problem of war finance is to be grappled on the best principles of stabuity, if M. Ribot continues in office as Finance Minister after the day of reckoning comes, He has submitted a remarkable summary of the position to the Budget Commission, which began its labours to-day. He has introduced a much: needed reform known as budgetary unity, by abolishing special accounte for the Army, the Navy and Moroc-ce, and grouping all the expenditure together under the head of each department. He asks for supplies for the first half of 1915 on the basis existing taxation, exclusive of the income-tax, which could not be collected under the circumstances. The amount which will be required for the six mooths is estimated at Fre, 8,595,264,407, or, in round figures, £341,100,000.
In discussing the question of raising the needful, M. Ribot says the Bank of France can advance what is likely to be required so long as the war last. The real diffculties will begin when it comes to settling accounts after the close of hostilities. The greatest danger. he says, that the national finances could incur would be the continuance of the obligatory acceptance of bank notes as legal tender. The State would obtain the apparent advantage of not settling debts, and would find it convenient to pay the Bank only 1 per cent. interest instead of itself issuing loans and providing for their interest and redemption.
Original fror
Text read from the printed page and cleaned; old type leaves the occasional error.