Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-06-18
FRANCE MAY NEED
LOAN FROM BRITAIN
Such Help Necessary if Ger
many Cannot Pay Debts
Now, Says Tardieu.
FRENCH IN HARD POSITION
No Near Collection of Preparations
Than Eighteen Months Ago,
Expert Declares.
BY ANDRE TARDIEI.
Former French High Commissioners
to Americn.

Expert declares.
BY ANDRE TARDIEU.
Former French High Commissioners
to America.
BY Wireless IL The Star. Copyright, 1922.
PARIS. June 1.-THE big repara-
tionS struggle is next on the calen-
dar. The less Germany pays the more
bitter becomes her talk about repa-
rations, and it does not seem that
Frances chances of collecting are any
better than they were eighteen
months ago.
1t is unnecessary to repeat the
events which have led to the present
crisis. Germany's reply of May 81
promising what the reparations COM
mission demanded was based on the
hypothesis of an international loan.
The bankers committee decided the
loan was impossible unless Germany's
debt was reduced, which France de-
clines. and which the treaty stipu-
1ates shall not be done excepting by
unanimous vote of the commission
Frances present position, being
founded on Germany's promises.
which, in turn. are based on the I'M
realized hypothesis. certainly is not
favorable. For the present We are
operating under the Cannes agree
ment; which provides for only 10;
100000 gold marks annually. and
when Belgium's priority is deducted
there is little left for France.
Business Badly Conducted.
This whole business still is being
badly conducted. Take the case OF
the bankers, for instance. Their Job
is to sell securities TO the public.
They must consider whether their
wares will please their customers.
An absolute prerequisite is guaran-
tee of sufficient annual payments to
meet the interest and amortization.
II this condition is not fulfilled it Is
useless to talk about a loan
Yet the bankers were called to-
gether before any effort was made to
compel Germany to arrange such an
nual payments. Naturally the bank
ers decided a loan was impossible:
When they suggested a reduction OF
the debt they merely meant it's easier
to borrow one billion than ten bill
lions. Faced by these facts, many
Frenchmen are despairingly asking
whittier we are trending. l myself
do not share this pessimism? Why?
Because, considering the way the rep
arations matters have been handled
for thirty months it would be more
astonishing If any result had been
achieved. The whole thing now must
be undertaken anew with certain ar
ficulties that,did not exist In 1920. but
which are by no means lnSurmount-
able.
Two-Fold Difficulties.
These difficulties are of two kinds,
moral and financial -Undevastated
Germany certainly can pay in full.
but the notion that she cannot mas
spread and taken root throughout
Germany, making a psychological
mad imitation policy. has caused the
mark to fall so low 1t no longer is
worth anything. hence a monetary
obstacle.
When Germany has been taught by
appropriate neutrality-suspicious. OF the
Ruhr is unnecessary for that-that
peace treaties are serious affairs and
payments must be made; when marks
have been stabilized, even at a very
low rate of exchange, and revenues
from taxes can be calculated with
some cretainty, and when German
taxes are made equivalent to French
mems, then annuities can be arranged
and loans based upon such annultles
won't be difficult Then. and then
only, can a reduction Of the debt be
considered based on an equivalent
reduction of all other war debts.
Cart Before the Horse.
For two years the allied policy has
been consistently to place the cart
before the horse. Discussions of all
sorts covering allied debt cancella-
lions, loans and many others wholly
unrealizable have taken place, but
until Germany's resources are def
nitely utilized for regular payments
nothing can be done. Sooner or later
this condition will be fulfilled. If
Germany needed year or two OF
respite France would have to have
temporary help and this would give
Great Britain the opportunity to
show he solidarity with France
without risk, and this would have a
happy effect in America
At any rate, we cannot continue
turning our backs to the truth both
in London and in Paris, because truth
finally will pravail, as always.