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ESSAYS IN PERSUASION

PART

until they balance the expenses. Those taxeswhich are fixed in francs and are not ad valoremshould, of course, be raised pari passu with therise in prices.

There are two matters on which the Govern-ment of France needs to exercise an iron resolve—to fix the franc exchange at a minimum figureeven if it costs gold to do so, and to collectthe taxes in full. These are the indispensablemeasures. Heroic efforts to increase the ratesof taxation are, at this stage, efforts in a wrongdirection, and will not be successful.

What are the arguments against thesecourses? They are entirely political. A policywhich will not be successful unless it raisesprices by a heavy percentage will be open to theuniversal unpopularity of la vie chere. A policyof bringing about an equilibrium between in-ternal and external prices must be injurious tothe export interests which flourish on their dis-equilibrium. It may not be sufficient to replythat the first must happen in any case unless thetaxpayer will sacrifice himself to the rentier, andthat the second must happen some day unlessthe franc is to fall for ever.

But there are political considerations of someweight to set on the other side. A rise in theprices of agricultural produce will not be un-popular with farmers and peasant producerswho have been selling their output much toocheap. Further, the Government must make itclear that wage-earners and officials are not in-tended to suffer, and will, if it is wise, pass a