The New York herald., 1921-01-13
INSISTS U. S. SHOULD
GIVE FRANCE A LIFT
Loucheur, Minister of Com
merce, Argues for Extension
of Credits by America.
FINANCIAL ACCORD URGED
Reconstruction Work in Dew.
astated Regions Hampered
by Lack of Money.

Special Cable TO THE New York FEsALn.
Copyright, 1927, bg THE NEW York HERALD.
New York Herald Bureau,
Paris, Jan. I2.
France has a right to demand that
the United States extend credits to her
sufficient 10 enable US to go through the
next four or five years. repair our ruins,
rcorganize our finances and gather to-
gether our forces 40 we can resume nor
NAL hfe.' says Louis Loucheur. Minister
OF Commerce and Reconstruction, in an
interview just published In the French
press. The depreciation of French ex-
change must be. corrected immediately,
he asserts. IL the cost of living Is TO
decrease.
Personally l do not believe that tn.
imitation of our currency has any in
fuehce," he continues. 1T will not be
by the withdrawal OF a few billion
francs in bank notes that we will be able
to restore the equilibrium between our
metal, currency included, ana our paper
circulation. What we need is a strict
financial accord with friendly countries
like the United States and England. both
OF whom now seem disposed to help us
in this way. Their commerce has been
seriously affected. for a country with
deprecated exchange naturally abstairs
from purchasing. which will induce idle
ness as well as close down business in
terchange."
NJ Loucheur's analysis supplements
remarks by him in the French Parlia-
plent recently and has special weight as.
since Great Britain has decided to send
Lord Chalmers to America to seek
long term funding loan, M. Loucheur's
friends are inclined to suggest that
France act similarly. but are not likely
- RI
effect until the status of the Leygues
Cabinet is more clearly defined.
Reconstruction Hindered.
The absence of the German reparation
settlements and the consequent compii-
cation of the French financial arrange
ments are as a matter of fact. not only
worrying business men generally but
are hindering the work of reconstruc-
tlon In the devastated regions. accord
ing to Jean Ogier. Minister of the Lib
Grated Regions. He admitted the Min
istry of Finance has prepared budget
showing immense allotments for this
purpose. when when the time came 10
hand over the cash to the reconstruc-
ton companies the money was not OBJ
tainable To meet this special nego-
table security, bearing the Govern
ment's signature. has been devised. but
It apparently will be borrow from
Peter to pay Paul" system of financing
between various departments, intended
to solve the, problem temporarily or at
least until the United States decides TO
tell France Just what can be done.
Budget allowances to certain regions
could not be met promptly last year,
although the work was contracted for
NJ Ogiei hopes TO overcome this
through a closer coordination of plans
by department projects of the devas-
tated regions. who will not start new
work until they are sure that either
the cash Is ready or means are available
10 negotiate a new issue of 'reparation
scrip"
or the 5000 600. 900 francs spent In re-
construction work last year. ,o0D,oO0, 600
frFncs represented advances on indem-
mites to be paid by Germany: 10000
francs for urgent food relief and the
remainder was spent for labor and ma
terial necessary TO restore the farms TO
a state OF cultivation. That this was
no mean labor was shown by the fact
that !. .0O0, 900 acres of land were cleared
of shells. bombs and barb wire, while
nearly double this acreage got a first
raking over and 5000 miles of trenches
were filled in.