The New York herald., 1921-01-19
BOTH NATIONS SUFFER
Funds Needed to Bridge
Time Between Allied Meet
ing and German Payments.
SEE DEFICIT 30 BILLIONS
If Loan Is Refused Here, Rep
arations in Kind Follow,
America Losing Market.
BY LAURENCE HILLS.

BY LAURENCE HILLS.
Special Cable to THE NEW YORK HERALD.
Copyright, 1921, by THE NEW YORK HERALp.
New York Herald Bureau,
Paris, Jan. IL.
Despite the emphasis being placed
on the desirability OF settling the rep
arations problem with. Germany along
lines which will not arouse the an
tipathy Of the British, Paul Doumer.
the new Minister Of Finance. in the
first interview granted the press by
member Of the new Cabinet assured
THE New York HERALD correspondent
here this morning that France was
still counting above all things on OBJ
tanning prompt financial assistance
from the United States to prevent the
fiscal catastrophe which is threatened.
II have already expressed the opin-
ion before the Senate that help from
America was Indispensable ard the
Cabinet is agreed on this general prin-
ciple," NJ. Doumer told THE New YORK
HERALD correspondent. "But the mat
ter is one of the utmost difficulty and
it is filed with intricate situations
which will require several days to
study before the details of our pro-
gramme can be settled.
"But / may assure the people Of the
United States through the columns Of
THE NEW York HERALD that We are
depending on them 70 save u.s."
Suffer From Lack Of Credit.
NJ. Doumers attitude comedies with
that OF Louis Loucheur. Minister of the
Liberated Regions. which is that both
America and France are suffering
through the refusal of the United States
Treasury TO extend further credits to
war torn Europe. and that the fact that
United States wharves and factories are
crowded with raw materials and manu-
factured goods awaiting orders from Eu-
rope makes the time opportune for the
French financial authorities to again ap-
proach President Wilson for Government
funds instead Of constantly appealing to
private banking interests for loans or
loan extensions at ever increasing rates
OF interest.
NJ Doumer said nothing was likely to
develop until the new Cabinet had pre-
scnted its official programme TO the
Chamber of Deputies, which II probably
will do Thursday. for while there is no
doubt of the ability of the Government
to get the necessary vote Of confidence
It must walk warily until the situation
is definitely cleared. THE New YORK
hox
ever. that one of the biggest worries OF
the financial experts of France Is how
| to bridge the period between the forth
coming conference of the allied Pre-
miers and the receipt Of any reparations
payments from Germany without losing
sight of the fact that the inauguration
of President Harding may mark great
change in the American policy toward
France.
NJ. Parmentier, In charge OF the di-
vision which handles International loans,
is thoroughly acquainted with American
banking methods. having been TO New
York on previous occasions to confer
with fnanciers there. and probably VIII
personally direct any effort France may
make TO consolidate her present debt in
AS a matter or fact, however, France
has discovered that she has strong
argument to use in any negotiations she
may enter into with the United States
Government. namely, the danger OF a
/ further reduction of American exports
II France IL forced TO adopt the extreme
measure OF accepting most Of Germany's
reparations payments 'in kind How
this would affect United States manu-
facturers and shippers was described by
one we'll informed Government official
| as follows.
Germans May Capture Market.
zone OF the first demands by the
invaded regions on Germany IL for the
replacement OF hundreds OF thousands
of farming machines and implements.
Before the war American and Canadian
farming machinery and implements we're
steadily growing in favor among the
French. the factories here producing but
small fraction OF this country's needs.
America has the machinery we need.
/ but we have neither the money nor the
credit to bring II across the Atlantic,
Germany is said to have a surplus OF
! 80. 600 harvesting machines ready to
ship as soon as the payments for them
are applied as a part of her indemnity.
But once these machines arrive here
Il will mean that the Germans have
captured the French market for at least
twenty years, as the repair parts for
such machines naturally will come from
Germany"
Leaders in the Cabinet like VI. Louch-
eur and NJ Dounlcr do not believe in
dustriai conditions in the United States
will permit America to risk the loss OF
the European markets in this way and
that once the danger Is appreciated by
the Americans credits will begin to flow
again toward France. They insist that
what is true OF farming machinery IL
equally applicable to other commercial
| lines in which the United States had
predominance in the French market In
1914.