THURSDAY, OCTOBER 29, 'I925

THE MICHIGAN DAILY

PAGE. THREE



Va n

Sickle

Treats

'ses

of

French

Financial

Pro Ice



txoverniiient Couiders ()aptial,
A,; Ultimate Remedy 1For
lTIlIancedidget

ILeVY of the military item in the budget,
about "which wve hear so much, would

ECONOMIST FJNPSFLA WS

still leave a large (deficit. No quick
and sufficient increase in the yield
from existing -revenue sources can be
looked .for.
Arn'umwntfomvy

followed by the certainty of Idwer
taxes, wouIl prove less (let rimeutal
to Business enterpirise, less; of a
damper on saving andI thrift, t hani
jw ould the expectationofl \(vy heavy
taxes for years 'to come. In tIii
'whole argument the udmiiiist ral ive

France's financial situation will not( difficulties are madle light of'.
be bettered if the considered levy on I This is thesiuto whc ha
isisiutd nte ripted the proposal for a capital i ~ t i01 la o Dou
capital ilevy.tThetarguienthforptheolevy is IlYet it is precisely the adriinisti a-
of prof. J. V. Van Sickle of the econ-sim~ple and plausible. Let all proper- tv ifclista go far toward ,
omics department, who in an inter- ty: owners above the smallest contr i- j ustifying our scepticism ci Ithe ec 1 -
view yesterday discussed the Frenchbt nl neafaci o h i al levy as the proper remedy for
finacialprolem.weath t th Stae, o beuse by heFrance's ills. It. is ha-rd e.,owtii to
finncia prblem weath o th Stte, o beuse by e t collect a large revenue from a vaiefTr
Accordbig to newspaper reports, a n+ State to reduce the rublic debt. TheoftxsItievhadroc,
extraordinary levy on capital is againI fraction surrendered would have to 'h hl rmasnl a.ii
being seriously discussed as the way increaselharplymwih totalewalth, if1
out -of 'France's financial situation, any real relief is to be secured sin:e j~ta eyiersnsasnl a
Since 1921, when the Socialists first'.Io nrcd tdmgiue l( hthe great mass of the poor would; un'rcdnelmantdadt~
execution wcld perforce I ost withi
urged. it, the captial levy has gained ,certainly be exempted for political the French direct tai, administitlioji,
inheasn left.pVrytrecentlgh partye of and administrative reasons. The sur- admiiittedly oe (of the weak pita ih
the eft Vey rcenly he art ofrender need not represent an intol- the French revE.nu systeni. Te re-I
which former premier Herriot and theI erable burden, however,' since almost si ol vnl~ ~,iall
Present finance minister Caillaux aresiutnosytepyr'ftelv SU w ldaot.ctaly 8 8
simutaneusl thepaye ofthe evygreatly iiie 'eased delay in tyre 'clec-
members has .endorsed the capital would find a market for his depreci-tii exsngdrtta8,a!a
levy as a proper, though ultimate atedpulcbnswhhteSae '
remedy for the unbalanced budget. Iwould bybondsk whch tear.tevery considerable dlay l ind"lu- ho t
buy ackat ar.Furthemore, first. collections on thze cap ta!l Iy
It is by no means impossible that. such Ihe would receive additional relief in Mlewntuxne the" noctile CO. Ivv
a mleasure will be enacted. i the shape of a sharp reduction inl his.~Oiihv
Reviews Meoal Situationtefrhrices an excuse for ho>st1cr7:n; neces,.ar7
Ijtaxes, instead of tefrhrices but painful andi uni-icpuiar ecoefne
What is the fiscal situation that' that would be necessary if the debt)______________
would justify such a drastic proposal? i were to be redeemed in the ordin-I..
The figures of the 1924 budget tell 'ary manner. It is argued that this
the 'whole story. Expenditures, class-Ijsingle sacrifice made once for all and;-t1
ifled broadly, were as follows (in bil-
losof francs) : Interest on public DE ROTTH AT E
debt 16.5; pensions 3.6; military ID T OTT ~ T E
charges 7.6; civil expenditures 9.8; T HI S WEEK I fl
ing the total expenditures 45.5bilosj/It
ofan S yiareosrcin mkNights 75c to $1.5 TesThrs&St. /n 1
Agfaincst these expenditures stood loostelle Playhousmts. Sad 75c
revenues of only 27.1 billion frances, Woodward at E3llot Tel. Glendale 97927C /
leaving h a b a deficit of 18.4 billions. broig This S the Do NSTELL E Co.ey
adtbemdupbbooina nteRlikig, Nl aircCmd
have the deficits of the past ten years.I T fl*kA .
The result is that, without paying a,1f'hIe eggar on Horseback
penny as yet on her foreign debt -. / ~(Ki1
(143.3 billions on Nov. 30, 1924, at ' Eves. - 50c to $2.50
rate~ then prevailing), France had an tSAR RICK giWd aSct 15 iI
interest and amortization Sa.ha.argte$.0 '
which ate up 60 percent of her rev- 6bigW k0
enues; with pensions, 80 percent of e~ 5 I SH R E
her revenues. On the contrary, the 11-10O
burden of taxation was crushing. With L A ST W E EKIfS N
a per capita income less than one- ccZ 1ITPUD A'Em V ET'r"?

Thus the first effect of the levy would
pi-obably be to increase the deficit
alid the embarrassment of the State.
'lie secondi effect of the levy would
be to increase "the flight from the
tz-anct"i.' roperty holders, large and
ssi,aII. wouldl attemipt to g'et their
'A e-lth cut of reach of the fi scus. The
speculative demand, for foreign ex-
change would increase tremendously.
,Legitimate buyers of foreign exchange
further' rise wvould hasten to cover
itimat1e buyers of foreign exchange
(imp~forters, for example), fearing a
firt hor rise would hasten to cover

their needs for a lo:.,jer period than jRis11ng Exchange sharply. Laborers in industry would
usual. The experience of Austria and The rise in the foreign exchanges strike for higher wages and probably
Germny bundntl sho towha would excite widespread popular dis- I get them, because the sudden rise in
depths and with what rapidity a wave!
of distrust can drive the currency of trust in the future of the franc. Those prices would have proved for the
a country. The flght from the franc, who could not buy foreign exchange 1 moment a bonanza to employers. The
initiated or rather hastened by the would therefore try to buy goods- State's expeditures will be enormous-
cap~tial levy would thus destroy the anything rather than francs. Prices ly swelled, the deficit sti further in-
purchasing power of the franc abroad. and the cost of living would advance (Continued on Page Seven)
Indeed, the alarming fall of the franc
from about 4.45 tr 4.10 within the lastII'
ten days, despite the fact that thej
Locarno treaties were signed during
that period, may well be due to the re- I_______ __
vivedI talk of a capital levy.WVTE A T R


BIG
MICHIGAN-NAVY
DANCE
at
MASONIC TEMPLE
SATURDAY NIGHT

FRIDAY, OCT. 30.
Michigan Theatre League

O peningr

Season

Muasic by Al Strauss' Ireuaple Blallroom )rchaesira
$1.10 Ccauple
Tickets on Sale at.

SUPERLATIVE EVENT OF THE PRA.ATIC EAS I
The Fatuous All-Star Company, Comprising
MRS. ISKE, CHTAUNCEY OLCOT'T, TItEIIAS A. WISE
JAMES T. POWERS, LOTUS IIOBI

and Other Stars

1.

Scranton, Pocahontas, Kentucky
and West Virginia Coal
Solvay and Gas Coke

1

In Richard Brinsley Sheridan's
linmortal 'Englisl Coinedy

Appearinr, Under Mhe Management of George Co Tyler and H ugh Ford
PRICES-Lower Floor, $3.00; Balcony, $1.50, $2.00,'$2.50


ILI

third of our own (about '$195 to $605) L ~iho' hrrm afayette at Shlelbyj
Preelienwere nayn 20 percent of1 I brtLafayette Nights, 50C to $31
FrelchenUVIUMU Bargain Mat~.,
their incomes to the state, as against Thursday, best seats, $2. Sat. mat., Soc to $2.50 $
11.5 percent in our own case. Tel. Cadillac, e705
No ordinary economies will suffice The ST UD E NT PRINCEV
to balance the budget, which indeed Every Play.Goer Should See It!
has grown worse and not better dur- Every Music-Lover Will Hear It!
ing 1925. The complete elimination' Male Chorus of 60 Girl Chorus of 35 I
TUXECID OsS r
The Fall formal is an occas-
ion when you will want to
V appear at your best. A Tux-
edo, the latest in style and
cut, will give you that desired
A appearance. Let us fit you
out !
Prices $40 to $75-
A.C.Barth
, y "Everything in Tailoring"W
f.Last Day to sign
for an 'ENSIAN
at $3.50 t
On the Campus

UNION SUITS '1d
kneeIciui Ii slei'eis~,This business has been growing ever since it was establishied
Aitline(!lc'1i ed reislos The secret is "GIVING ABSOLUTE SATISFACTION '
of I1crstrade Awool Iand cnt TO OUR CUSTOMERS."
$300 1
s We believe it pays to do business in a friendly way. If you
This is a new and i: 71111 i thinky so too, let's get together.
cre'ationI.Penand the gei iuhlo.
CLOTHING S CORE on l-C -Ck
SNOW PLAYING
Asere As You 're Alive! I11A BS~r,
without equlal pfast, present '
and prhaps many years hence
A REQUEST'~
'Thle ( fdema d f P ut s fir'
gageinent leas beiten 'iitiir
heavy. Theref ore, v kct1 ha Just the Goal of the College
.-ou kindly inote fati , in -,1meof Who Longed for Popularity ~~-"A
shows aitniid rrngeto hbe lte
-Policyr-
M~atinee
24:00-3 :30)
10c:c, C,50c
Evening
7:00-8:30)
Lo4ges 1Reserved
7 c ~IM1,6F AS
-0verture-".
Byd' Slecial Arr'inge uent ¢
"The Student Prince in Heidelberg,
A Toples 1Pictoial i (v s
I ''- - odge 1Po(Igv
0) Nvidt3 ({aito 'i
Comning-Gloria Swanson in "the Coast oftx£4y
. . . Z ' 4

5


Ar
NOW. SHOWING

A
P
a_

xlove ayer.:d mnWild Dill wai o/Yor
" n ear Aj


ADDIED)


GL~ENN TRYO
i
"CUCKOO LOVE"

ORCHIESTRtA

FOX NEWS




AT

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