Evening star., 1924-12-30
ARDEBT DISPUTE
MENACES HARMONY
Reed Speech in Senate Seen
as Administration View
in Row.
by DAVID LAWRENCE.

M DAVID LAWRENCE.
There is no question now that the
United States and FSance have en-
tered into a diplomatic controversy
which may for years to come affect
the relations between the two coun-
tries.
The speeches in the Senate. notably
the one by Senator David Reed of
Pennsylvania, are a reflection of the
administration viewpoint. Mr.. Reed
in particular is known to be the
close friend of the Secretary of the
Treasury, Andrew w. Mellon, and he
never would have made the kind of
speech .he did without the knowledge
of Mr.. Mellon, who is not only the
head of Americas finances at this
time, but conspicuous member of
the commission created by Congress
TO fund the World War debts.
Mr.. Reed made several significant
statements in his speech. which was
couched in terms of great friendli-
ness to France. The Pennsylvania
Senator has long been known as a
friend of France, as he fought with
the American eXpeditionary forces
and was one of the first to agree
with the French in their occupation
of the Ruhr.
supports Moratorium.
II think it's obvious France will
need longer moratorium said Mr..
Reed at one stage of his speech. and
at first lower rate of interest"
This is a concession which has been
whispered about for the last two
years as the single variation that
Congress might make, so it was in
teresting to observe spokesman of
the administration saying it publicly.
1t does not differ a great deal from
the suggestion made by the French
Ambassador. Jules Jusserand, recent
ly that France needed moratorium.
What he meant, of course. was that
France be permitted to postpone pay
ment for few Years until she recon
structed her finances. but such a post
ponement does not mean leaving the
whole question in the air 1t does
mean a concrete settlement and the
fixing of a date for the beginning of
payments on the principal and in
tereSt.
France must be told" said Senator
Reed. that each day of delay in ar
ranging for refunding the debt makes
1t more difficult for us to give her
that leniency which she needs
Reputation Seen Here.
In the foregoing sentence may be
read what the United States Govern
ment really means when it discusses
the speeches of the French minister
of finance and views them with alarm
For the last "a hours nearly every
branch of the Government has had
something to say in reply to NJ. Gle
mentels speech which has been in
terpreted as meaning default and re-
pudiation. Had the executive branch
of the government not taken the ini-
tiative and had not friends of France
like Senator Reed of Pennsylvania
taken the thing in hand there is no
telling what the anti-French senti-
ment might have been. Certainly the
President and Secretary of State
might have been placed on the de-
fensive If Congress had adopted reso-
lutions demanding that notes be sent
by the World War Funding Commits
sion demanding payment.
ENJOYS without Authority.
Thus far the President and Secre-
tary of State control the situation
and France is being plainly told of
the consequences of a continued poll
icy of indifference to war debts pay
ments. Senator Reed revealed what
has been suspected. namely that
neither NJ. Parmentier, who came as
the head of the French commission
in 1922, nor Ambassador Jusserand,
who lately revived the discussions
had any real authority to make pro-
posals.
1t appears that NJ. Jusserand en-
deaVored to get things started" but
the French government did not back
him up. 1t is not clear whether the
Paris ministry was in sympathy with
him at the beginning and backed
down when the British demanded that
their war debts be considered, too, or
whether the French government SIM
ply looked on with passive interest
at what they hoped would be a ges-
ture of friendliness on the part of
their retiring Ambassador.
Blame Placed squareIy.
Official Washington doesn't blame
Jules Jusserand that at the moment
of his departure, after a long period
of faithful service, during which time
he has become so popular here, the
relations between France and the
United States should be disturbed by
hints of repudiation of debts. The
responsibility is placed squarely on
the goYernment in Paris of this and
preceding administrations in misin-
terpretinG American sentiment.
1t is significant, however, that for
nearly two years prior to the Brit
1sh settlement constant propaganda
for reduction or cancellation of debts
was carried on, and when the British
realized there was no chance of such
a policy being adopted they made a
settlement. There are those here
who think France is also testing
American opinion, and that when
the unmistakable answer is given
there will be commission sent here
with authority to arrange settle
ment.
Copyright. 1921