Problem of the National Finances: Signs of Recovery: Noble Russians' New Life From Our Own Correspondent, Paris, Nov. 3.
-The pessimistic views expressed by M. Bokanowski in his report to the Chamber of Deputies on the state of the national finances have brought a reply from the Minister of (Finance, M. de Lasteyrie. These two authorities do not quarrel over figuries. The existence of a large deficit is too patent to be denied. Where they differ is in regard to the future. M. Bokanowski hints at national bankruptcy if borrowing continues; P de Lasteyrie anticipates increased income from; existing sources. He argues that the revenue depends largely on two} comparatively new taxes—on incomes and business turnovers—} which have not yet had time to produce what can reasonably be} expected from them. His remedy for the very small amount paid by; agriculturists under the head of! income tax is, not to resort to in-/ quisitorial measures, but to increase the assessments of land values. Another hopeful point for the} future is the gradual revival of production in the devastated provinees, which have not yet been able to contribute much to the national: income. He estimates that in two or three years the increase in revenue will be enough to wipe out the deficit of ithe ordinary budget.
The real difficulty will be to finance what is called the recoverable expenditure budget—that is to say, financing the rebuilding of houses, factories, farms, etc., destroyed by the Germans. These are called recoverable expenses because France is supposed to recover tthe outlay from Germany, and whether that country pays or not, France must go on rebuilding, and also paying pensions. No one can say what France's claim on Germany is worth. It is, a question of foreign policy, closely: bound up in fact with that of. the Allies' debts to one another. France proposes to lay a precise and positive plan before the Brussels Conference, and when she knows the result of that conference she will be able to decide
Text read from the printed page and cleaned; old type leaves the occasional error.