Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-05-17
Ry FREDERIC WILLIAM VILE.

~ F"GpEnN NIbtN" " bbT-
r ARLY settlement of interallied
- Europe's unfunded debt of
S7.l00.91S,695 Is not expected
IL in Washington, despite the
stern reminder which the United
States has just issued to nine debtor
nations. What is definitely expect
ed. and what Is bound to he forth
coming. is prompt indication that Flu
rope. in American verna cular. Is now
sitting up and taking notice. Even
that will be rega rded in Washington
as satisfactory evidence of progress.
" will be marked departure from
the attitude of indifference which has
steadily distinguished most of our
debtors hitherto.
But Washington Is conscious that
between signs of good intent. however
definite. and actual performance. long
delay is inevitable. Like France.
nearly every one of the debtor nations
is immersed in taxation. budget and
currency woes. Industrial reconstruc-
ton. as in France, has been sub
stantial. but government finances
nearly everywhere are still In chaos
Few If any of the debtor nations have
put their houses in order as Great
Britain has
Thus, it is to he expected that. as
France Is certain to do. the Euro
pean governments in our debt will
generally plead for time. on the
ground that charity begins at home.
There will he full appreciation of this
attitude here. hut less readiness to
wait Indefinitely for brass tacks"
development in the way of funding ar
engagements.
Expect No Early Settlement.
Washington officials. who are fully
- IL
government now faces. are CORE
spondingly convinced that il will he
many moons before France is able to
get down to brass tacks on her huge
debts to America and Great Britain.
Our Government knows that NJ. Gail
AUX, only recently under the ban for
semi-treason TO France. was called to
power because Of the grave necessity
for heroic domestic financial mea sures.
The French admitted that. even though
SaillauX's record was extremely shady.
nothing less than his acknowledged
financial genius could pull the republic
out of the economic mire in which IL
has wallowed since the war.
Caillaux has two paramount prob
lens to solve. He must get the franc
hack from its present value of about
5.cents in American money to some
thing more nearly approxima ting its
par value of 20 cents. OF perhaps even
greater gravity is CailIauX's taxation
problem. He has the unpleas MT and
as some people think. the hopeless task
OF inducing the French people to tax
themselves and to do so heavily
With the franc lussed upward and
revenue coming in from drastic new
taxes Caillaux then has the general
problem of balancing the French bud
get to deal with. 1t would be idle. and
worse than idle for any American or
Rriton. who feels that France ought
10 he paying up" TO ina sine that
France will be in position to do so
speedily. Every American financier
who knows anything about such mat
tiers under stands perfectly well that
Caillaux confronts a job that will re-
quire patience. endurance and skill of
the highest order.
French Folk Hate Taxes.
The French hate taxes. They have
always disliked them. If they had had
the spirit to go in for wartime taxa
ton on the scale the British did,
France might today be in something
like Britain's economic position. Gail
laux, therefore. has more than a fiscal
situation to cope with. He has a
psychological condition In the French
people to overcome.
The troubles. of Caillaux. who can
be described without hyperboie as the
most harassed fina nee minister on
earth, are political. too. Enemies sur
round him on all sides even within
the cabinet in which he sits. They do
not banker for his success in right
ing France economic wrongs. They
would much rather trip him while he
is engaged in that process. Success
would single CaiiiauX out for the