Evening star., 1923-11-24
IN TODAY'S SPOTLIGHT
BY PAUL Y. COLLINS

A great deal of 'Indignation," or at
least impatience, has been manifested
in certain political and financial cir
cles over the recent pronOuncement of
President Pofncare to the effect that
France will not undertake to repay
her loans to this country. except as
she collects reparations from Ger
many. By some minds this statement
has been interpreted to be almost re-
pudiation of the debt, amounting to
nearly $4,000. 100000. and criticism has
been launched against the supposed
| repudiators. For the United States
government has consistently refused
to consider it's claim against France
as In any way conditional on her col
lection OF German reparations.
There Is no new departure In the
policy or frank statement Of Presi-
dent Poincare. It has been Frances
attitude ever since the war. Hence,
Treasury officials say, there is no rea-
son now for sudden excitement, on
the assumption that, by her present
alleged "repudiation," this country
faces a loss of so great an asset as
81. 600, ,000, 900, involving, as 1t would,
additional losses of what Is due from
other debtor nations.
* * 4; -
All such obligations are represent
ed by promissory notes, reading as
follows:
This certificate will be converted
quested by the Secretary of the
Treasury of the United States of
America, at par. with an adjustment
Of accrued interest. into an equal par
amount OF per cent gold bonds,
-, conforming to the acts of Con-
gress."
The official signature of the French
government Cor of the other respec-
tive debtor nations) is attached to
the above standard form of promis-
sorry notes. France owes an aggre-
gate of s3.34O, sos 1851 principal,
with accrued interest of s576,71S.-
597.S1. making a total indebtedness.
as of August "a, 1928, of s3,91I .325.-
974.S4. France has actually paid in
terest to the amount of slSO,b1,-
547.SS. which fact appears to be for
gotten in some quarters, but which
payment would scarcely have been
made by debtor intending ultimate
ly to repudiate the principal.
x i x 1:
The demand notes, by their Ian
guage. indicate that cash payment,
at an immediate date, was never
contemplated, but that. on demand of
this government. at some convenient
time after the war had ended, they
would be refunded In the form of
gold bonds bearing per cent in
terest (as the notes now bearl. But
in our settlement with Great Britain
the actual interest was computed at
Az per cent up TO December. 1922
and bonds exchanged for the notes
bear only 3 per cent for the first
ten years ana 3i2 per cent for the
remaining iitty-two years. As that
would probably be the basis of set
ticment with other nations. there is
a strong incentive in reducing in
ter,st charges to make early ADJUST
| ment and refundlng.
Great Britain and Finland are the
only nations which have so convert
ed their notes into definite bonds
Cuba and Nicaragua have paid their
loans, without converting them into
bonds. The other debtor nations OF
the allies are still owing US in sums
ranging from Italy's s1,973,S ,S79,
23316 to few millions each from
small nations. and all this is repre-
sented by demand notes. The total
! outside OF England and Finland
bonds, amounts to $1,000, 100000. II
| France were to repudiate her $4,000
/ 000, 900 the other $4,000, 100000 would
! follow in the dump-if not also the
| British bonds. But reputation by