Evening star., 1924-03-14

France has failed to fund her war
debt 10 the United States or to pay
interest upon it. She loaned to
Poland, Jugoslavia, Rumania and
Czechoslovakia during the years
191s-192l e47,332.50O francs and has
opened accounts to lend to the same
countries an additional 1850, 100000
francs.
Her invasion Of the Ruhr has
been a disappointment. so far as its
financial results are concerned. Ger
many is not paying her reparations'
and in the rebuilding Of the devas-
tated regions in France by means
advanced from the FL ench treasury
Chased upon expectations OF collect
ing from Germany there has been
sensational grating rfvaling the
scandals in the United States. The
franc fell to low-water mark OF
3.41 cents. the par value being 20
cents. Bankruptcy and general dis
tress faced the French.
Suddenly there has come relief
a preferred loan Of s100,000,o00 from
headed by the J P. Morgan inter-
ests. At par value of the franc the
American loan half way replaces
what France is lending to middle
Europe and the Balkans, in addition
to her loans in the two years i'm
mediately following the war.
X * X *
There is an amusing story Of an
American soldier. who had been
celebrating the armistice by singing
-
Over There" and who exclaimed:
Lafayette. we've paid what we owed
you. Who do we owe now?"
The new loan of sl00oo0.000 has
not been made on sentimental con-
siderations. 1t is an Indication that
the American international bankers
have studied the situation and decided
that although Europe'S troubles are
not over. over there" reasonable
hope has come into the situation, so
far as France is concerned, and the
security is satisfactory for the great
loan offered. Some opt mists pre-
dict that while s100.000.00O is offered
not more than S25.000.000 will actual
ly be used. The security is 10 per
cent OF the gold in the French treas
ury. Ii the loan is not paid when
called that gold must be shipped to
the United States. The term of the
loan is variously given-from three
months to year. or ION demand"
X X x =
From all reports Of this bit OF high
nnance. there appears no account
Whatever that the American bankers
took steps to have any benefit of
their gold go to American producers
When our war loans were made
they were conditioned upon their ex-
pendIture in the United States for
products of our farms or factories
II there is any such stipulation in
tne present loan, the press dispatches
nave failed to report 1t. Yet, while
the negotiations were pending, Con-
grss has been debating the need of
our governments buying from our
farmers 200.000,000 bushels of alleged
surplus wheat and dumping IL upon
Europe to relieve America of the
burden of overproduction-sel II
Tor whatever Europe would pay and
covering the loss out of our Treas
ury. This appeal has not reached the
International bankers. They lend gold
they collect interest in gold; they will
demand gold in repayment
n X X +
The franc had fallen to 3.41 cents
because France has been obliged to
import far more than she could ex-
port. In 1920 her deficit of trade bal
ance was 22,531 million francs. In the
frst eleven months of 1923. the trad,
deficit was only 1,463 million francs.
| No people on earth has greater re-