The New York herald., 1922-07-02
Explains situation.

AS it stands to-day, Frances deb: to
the United States is S3,o4O,S57,59S. of
which only $407.341,145 represents the
purchase of American army stocks"
high authority of the Ministry OF
Finance told THE New YORK HERALD
correspondent to-day. 'Only on The
latter" he added, has the interest been
paid regularly, as interest on the for mer
has not been called for
Frances share, If Germany were to
live up to her agreement. would be only
35O.OOO,0O0 gold marks yearly, as $780,
100000 must be knocked off as priority
for costs of the armies Of occupation.
IF England and the United States
demand payment OF interest and
amortization it Would require $780,
100000 annually or q deficit of $780,
100000, which France certainly would
be unable to find.
I'VE are confident that NJ. Parmentier
will be able to convince the American
Government of our difficulties and that
interest will not be asked for a long
period, certainly not before there has
been some attempt to effect general
liquidation of interallied debts
m. Parmentier who Is director of the
movement of funds in the Ministry of
Finance, will show among other details
that France is advancing about 10000
000,00 francs to the devastated regions.
in order to complete the program of so
per cent. of all reconstruction which has
been listed as urgent, and upon the res
toration or which depends Frances abil-
ity to maintain her economic position.
The remainder, including 1000 homes in
eastern France, Is not needed immedi-
ately, and will constitute the program to
be completed at the end Of, say, six
years.
But Frances financial capacity row
has maximum of about $4,000, OO0. 600
francs, and, with large portion of the
budget chargeable to Germany, that does
not leave any leeway for the payment
of debt interest" the same authority de-
clared. Therefore, even a general IL
quidation of debts, IL it ever comes
there must be priority granted to the
needs Of the devastated regions"
Minor Claims Not Considered.
The official did not consider the idea
of France waving her claims against
the smaller Allies as bait to America
to do likewise vitally important, as these
friendly advances total only S1OO0O0O.
600 at present. The cancellation of these
claims against a portion of Americas g
claim has never. been envisaged, as 1t Is
conceded here that Germany must pro-
A.
ton equation.
AS one of the results of American
and British insistence upon immediate
payment of interest due the Finance
Ministry is calling attention to the
effec of throwing s4Oo.000000 yearly into
international money markets by buying
dollars and pounds sterling
IF such a condition arises before
France is fully restored with German
assistance 1t would mean that the dol
lar would be worth eighteen or twenty
francs and the pound as high as sew
enty inside of n few weeks, and we are
certain that neither the United States
nor England. with hundreds of thou
sands idle, wish to provoke such a
debacle. especially after seeing how the
fall of the mark has interfered with
their commerce. said the finance Off |
cial.
Recalling how the bankers committee, |
OF which j. p. Morgan is member. |
failed to find basis for an interna-
tional loan to Germany, so long as repa-
rations and interallied debts problems |
remained unsolved, "Pertinax." I'm the |
Echo dc Parts this morning adversely
criticizes the American attitude on debts |
and interest, and adds:
1T Is useless to try to obtain loans |
OF country which makes such de- |
mands upon us. Perhaps its attitude
will change, and we hope It will, but |
meanwhile we must fructify our rights"
The Vtctorie goes further: wv have
only to walt the good pleasure of our |
American friends, and until the time |
comes. not mark time, but establish in
terallied control of German finances, by |
making as much as possible Of the |
Reparations Commission. Our Ameri- |
can friends took two and a half years |
to decide to enter the war. so they must |
not be surprised IL IL takes some timo |
to annual the $4,000. 900, 900 claim they |
have on England, France and other Eu- |
ropean countries"