At the end of 1922 the internal debt of France, excluding altogether her external debt, exceeded 250 milliard francs. Further borrowing budgeted for in the ensuing period, together with loans on reconstruction account guaranteed by the Government, may bring this total to the neighbourhood of 300 milliards by the end of 1923. The service of this debt will absorb nearly 18 milliards per annum. The total normal receipts under the provisional[18] Budget for 1923 are estimated at round 23 milliards. That is to say, the service of the debt will shortly absorb, at the value of the franc current early in 1923, almost the entire yield of taxation. Since other Government expenditure in the ordinary budget (_i.e._, excluding war pensions and future expenditure on reconstruction) cannot be put below 12 milliards a year, it follows that, even on the improbable hypothesis that further expenditure in the extraordinary budget after 1923 will be paid for by Germany, the yield of taxation must be increased permanently by 30 per cent to make both ends meet. If, however, the franc were to depreciate to (say) 100 to the pound sterling, the ordinary budget could be balanced by taking little more of the real income of the country than in 1922. [18] The forecasts of the final outcome of the year are frequently changed and may be somewhat different from the above,--though not sufficiently to affect the argument. M. de Lasteyrie has lately pointed out with pride how the further depreciation of the franc, since he first introduced his budget, is already improving the receipts measured in terms of francs. In these circumstances it will be difficult, if not impossible, to avoid the subtle assistance of a further depreciation. What, then, is to be said of those who still discuss seriously the project of restoring the franc to its former parity? In such an event the already intolerable burden of the _rentier’s_ claims would be about trebled. It is unthinkable that the French taxpayer would submit. Even if the franc were put back to par by a miracle, it could not stay there. Fresh inflation due to the inadequacy of tax receipts must drive it anew on its downward course. Yet I have assumed the cancellation of the whole of France’s external debt, and the assumption by Germany of the burdens of the extraordinary budget after 1923, an assumption which is not justified by present expectations. These facts alone render it certain that the franc cannot be restored to its former value.