The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-04
Washington Wonders if
Proceeds Will BE Applied
to Huge Loans.
NO PAYMENTS MADE YET
Property Valued at $780,
100000 Taken Over
for $400,000,000.
Special Despatch to THE HERALD.

y
OF the plants and property bought from
the United States as whole establish
ments" at the close of the war and
now proposes to dispose in the United
States of much of the surplus ma
terial" acquired from the United States
after the armistice. To what account
she intends to apply the money is still
an open question. So far she has not
paid this Government for this ma
terial
In all, at the close of the war, the
United States sold to the French Gov
eminent stock or surplus war ma
terial" manufactured in this country
and costing us in the neighborhood of
S1,5OO, 100000. France bought it for
only S400,000,000. She did not pay for
1t then, but it was added on to her
debt to the United States. The pro-
losal now to sell it TO firms in the
United States or to firms that will
resell 1t in the United States raises the
question of whether France intends to
apply the proceeds on any OF her OBJ
legations in this country or use it for
purposes Of her own.
Owes U. s. More Than 3 Billions.
France is indebted to the United
States for loan of s2,9974 An, 500 out
or the $4,000. 000,0 authorized by
Congress to be lent to our European
allies In addition she is n joint part
ner with Great Britain to the $500, 000,-
000 loan floated through a syndicate of
banks, headed by the Morgan firm, in
this country in 1917, and has recently
raised loan of $100,000,O0O in this
country through banking concerns The
stocks purchased from the American
Government at the close of the war
have been estimated variously as hav-
ing cost this country from $1,000, 000,-
600 to $1,700, 100000 Their sale to
France for $500, 900. 600 under an gree
ment entered into followed an appraisal
by the United States Liquidation Com
mission headed by Judge Edwin b.
Parker
The supplies consisted Of both NOV
able and stationary material. They
ranged anywhere from clothing and au-
tomobile parts to warehouses. docks and
railroad equipment, transported to Eu-
rope by this country for American sol
diers and their participation In the war.
Among the fixed plants there were ware
houses manufacturing establishments,
docks. piers, power plants, refrigerating
plants and repair shops. These are be-
ing dismantled and their parts sold.
There were railroad and telephone and
telegraph equipment, including trackage.
donkey" engines. bridge parts. cars.
cranes, wiring and instruments Most
of the railroad equipment was built for
European narrow gauge use and is not
generally used for transportation work
although of general utility for construc-
ton business in this country.
The general movable supplies ranged
from some that almost were worn out
to new equipment that never had been
taken out of warehouses. There was
motor transport, airplane and signal
service equipment. automobiles and mo.
torcycles and their parts, special tele-
graph Instruments, Photographic ma
terials and cameras. airplanes and
their parts there were ordnance repair
tools used on our guns In France, SAL
vaged clothes and foodstuffs, and odds
and ends of other general material used
by an army at war for both war and
personal purposes
This material was depreclating rap
idly Some of it never could have been
removed to this country. and the SOL
diers we're crowding the available
transports in their eagerness to get
home. Some of the lines represented
in this property would have met a
crowded market In this country, but In
other lines there was q demand that was
bringing high prices here. However
France was insistent about procuring
possible i'm the job lot purchase, and she
got practically all OF II.
Much Sold 60 American Firm.
For a long while II has been sup
posed that France would use this ma
terial in her own country in the general
reconstruction work. she had on hand.
But several sales have been made out
OF this property at home and abroad
since tho armistlce. The last and what
10 understood to be the largest in point
of quantity and value OF material sold,
is understood by officials here TO have
been TO an American firm known as
Harris Bros II Is supposed mitch of
this material will be brought TO the
United States and put ON the market
here.
1t IL believed by those i'm touch with
the situation in this country that France
may intend to apply the proceeds OF this
sale on her Indebtedness resulting from
her popular loan OF 1917 in this country
This obligation falls due October IS of
this year. and France and Great Britain
shared alike s250.000.o00 OF the entire
$500. 600 raised on this loan. But so
far this belief has not been confirmed
OF the total loan made TO France by
the United States Government she has
repaid only s31,440,35755. and this was
not in the nature OF n direct repayment.
This sum was returned out or money
authorized to be lent to her, because It
was not necessary for the specific pur-
pose for which the loan was made So
far France has not actually repaid any
OF her obligation to this country. The
fiscal affairs of the Allies have been so
tied up as n result OF the war that they
are straining from pillar to post TO meet
their obligations. 1t may be that the
French Government intends to apply the
entire receipts on her Indebtedness TO
the United states. or she may apply part
of Il on her Indebtedness on the popu-
lar loan of 1917 In this country, and
the rest on her national debt TO us. or
IL may be that SHE intends to apply the
whole proceeds on rehabilitation within
her own bordess. This Is the question
that Ia puzzling America, and so far
France has not decided to inform US on
her plans Meanwhile Americans who
lent their last dollars and gave their
utmost energy during the war are won
derIng II France and our other allies
.4at. = a..