Evening star., 1925-04-07
j. s. SYMPATHETIC.
IN FRENCH CRISIS
Effort to Be Made to Avoid
Any Incident Making Sit
uation Harder.
BY DAVID LAWRENCE.

Frances cabinet crisis and struggle
with financial problems has produced
sympathetic impression here to the
extent that no move will be made by
the United States Government, for
the present at least, which might
compIicate the situation
All reports that America is about
to send a drastic note to the debtor
nations demanding payment on war
debts or that economic pressure is
planned for the next session Of Con-
sress. through a restriction of private
loans. are wholly untrue SO far as
the President and Secretary of State
are concerned.
1t may be stated positively that there
is an appreciation in official quarters of
the difficulties in which the French find
themselves. and that there is<the most
profound hope that France will soon
find way out of her troubles.
incidentally, while it is furthest from
American purpose TO offer advice, it
cannot be denied that officials look
askance at the suggestion Of a tax on
capital in FRANCE. They fear the French
Will then experience a flight of capital
such as Germany had to contend with
ana that1n the end more harm will be
zone 70 french credit than could pos
siolS be offset by any income from the
proposal.
I German Case Cited
Inc experience of Germany with a.
capital levy Is considered q case In
point So long as the tax lasted Ger
mans deposited their money in other
countries, and it was not until the
Dawes plan was put into operation
etn
capital began to come back,
so long as France has such q pood
market for her domestic BORROWINGS
| In her own country the idea of a can
ltal levy, to disturb that situation. ia
consloered, from an economic view
point, most unwise. Should CAPITAL
begin a flight from France there is
every reason to believe the French
| would have even greater difficulty re-
funding their present internal obli-
cations which are shortly to mature
The American debt commission is
aware of the situation in France and
would not undertake at this time any
communication which 1t was obvious
could not receive attention until the
| French financial problem had cleared
up.
President Coolidge incidentlv has
| let IL be known that he is not aware
of any over extention by Americans
or private loans and that while the
| Government has always had a policy
| or advising private interests against
loans for military purposes there is
no evidence that any such loans have
| been projected. In other words there
has been no objection from the Amer
| lean government to any important
| loans.
| Private Loans Unhampered.
| With respect to congressional ac-
tion on loans made by private indi-
viduals. the proposal is not being
given consideration by the admins
| tration. 1t is assumed that priya e
bankers know the American investor
| well enough not to float any loans
which have for their object military
,aggrandtzement, or which do not as
| sist the French in stabilizing their
tcurrency situation.
| America has been compelled to
adopt a policy of watchful waiting
with respect to the French loans, but
as soon as the fiscal crisis is passed
| and France adopts a plan to refund
her internal debt, some diplomatic con
Versations will be begun looking toward
an exchange of views with the debt
commission again. 1t Is inaccurate to de-
scribe the United States as a creditor
| pushing France in her hour of extrem-
ity, but 1t Is accurate to say the United
States will discuss the war debt problem
just as soon as France Is in a position
really to do something about her ex-
ternal obligations.
Copyright, 1925.)