The Washington herald., 1921-05-21
FRANCES POWERS
OF ORGANIZATION
AIDED In BIG WAR
Dwight Morrow Praises
Republics Ability to
Meet Debts.
PAYMENTS AMAZING
Obligations in Last 6 Months
Have Been Reduced by
2,600,0O0 900 Francs.

NEW YORK. May 20. - At the
luncheon of the American Associa-
tion of Advertising Agencies at the
Hotel McAlpin today, Dwight w.
Morrow, Of the firm of J. P. Morgan
& Co. spoke in substance as fol-
lows:
In making an estimate OF the re-
covery Of Europe from the devasta-
ttons Of the great war we are all
inclined to lay too much stress upon
physical destruction. The great loss
to Europe was the loss of lives In
some countries also there was a
great loss of organizing skill, in the
capacity Of men to cooperate with
each other.
IF men can but retain their con-
fidence in each other, their faith in
their governmental, the property
losses will soon be made up. 1t
should be true in the future as it
has been true IN the past that
character and capacity ad skill in
organization will be the qualities
which will determine the worth of
Individuals and of nations.
Earlier Status Reversed
Tn the Franco<Prussian War,
France lost but little of a physical
nature, but she lost heavily in her
power of organization. Revolution
followed a humiliating peace. In
the recent war France suffered
heavy losses OF a physical nature,
but she achieved great gains in
power Of organization. Her external
debt today in gold francs-includ-
ing the debt to the governments of
Great Britain and the United States
is something less than seven times
the amount of indemnity she'paid in
less than three years after the
Franco-Prussian War.
The differences between then
and now are not easily appraised,
but IL may well be that France to-
day is better able-if she maintains
the spirit to do SOTO carry an ex-
ternal debt of 80 billions of gold
francs, than she was to pay an ex-
teraal debt of 3 billion gold francs
then.
AT all events. what France has
accomplished in the payment of her
external debt in the last six months
is little less than amazing. Her ex-
ternal debt reached its maximum
point at the end of September. 1920.
At that time it amounted to $685.
600. 900 francs. A the end OF March,
1921, her total external debt amoun-
ted to 32.723. 100000 francs. a re-
duction of over $500, 100000 gold
francs, or something more than
S5OO,OOO,0O0.
How was this amazing achieve
ment attained? It is not easy to
answer. The thousands of transac-
tions that make up international
settlements cannot be followed by
any single person 1t is probable
that France has made substantial
sales OF foreign-held securities: she
has also made some specie pay
ments. and we know that there has
been a very remarkable improve
ment in her foreign trade position.
Secret of Success.
THE truth is that France is again
becoming a self-sustaininS counery.
She is reducing her imports of food
stuffs: she is developing a surplus
of goods for export. In the calendar
year 1919, Frances imports exceed
ed her exports by almost $4,000, ,00e.-
600 francs. In 1920 the import bal
ance was about $4,000. .0O0, 900 francs.
In the first three months of 1921,
however. this import balance has
been changed into a small export
balance.
This is the fundamental explain
alton of the change in the French
position. This is the explanation of
the rise in French exchange. During
the last three months the people of
France have been doing more for
the rest of the world than the rest
of the world has been doing for
France
TT would be idle to suggest that
France is out of her troubles. She
has very grave problems ahead of
her. 1t is to be hoped that with the
settlement of the German indemnity
she will be able to reduce the size
of her army. 1t is to be hoped, also,
that the counsel of her wisest lead
srs will prevail with reference TO
the handling of her domestic debt.
The solution of these problems
will call for all of the patience, the
courage and the capacity of the
French peopl. But no one who
knows the French can doubt that
they will be solved. and to those
who have always believed in France,
the remarkable Improvement of her
condition in the past six months
has been an inspiring justification
of their faith. France has still a
long road to travel. but she has dis
tinctly turned the corner. And she
has turned the corner more quickly
than anyone would have believed
possible three years ago.