M. Caillaux, the present French Chancellor of the Ex- chequer,
is about to use France's share of the Chinese indem- nity to choke the deficit of this year and the next. As the indemnity is to be paid gradually, this of itself would not suffice, and he hits, therefore, upon a most ingenious plan for rashing the whole at once. He borrows £10,600,000 in Three per Cent. Rents, and with that meets his deficits. He then directs the " Caisse des Waits et Consignations ", to cancel 40,600,000 of Rentes, and accept instead the indemnity,which, if paid, is of exactly the same value. That is immensely clever as a " dodge " enabling M. Caillaux to avoid an increase either of taxation or of the Debt, but it will be observed that France gives up an asset computed to be worth £10,600,000, and as no economies are proposed and no taxes, the Treasury will in 1903 be again heavily in arrear. Moreover, if China does not pay. France, instead of merely going without, will be compelled either to raise a considerable loan or to invade China in order to recover the indemnity. That looks to us very much like the finance of a young spendthrift, who while his bills are taken and his property will sell feels quite com- fortable about his future.
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