Evening star., 1925-06-23
BACKGROUND OF EVENTS
BY PAUL !. COLLINS.

any other nation. except the one 70
which the loan. was made, had been
considered.
There is no qualifying clause what
ever in any loan. and the future
credit of each nation rests absolutely
upon how that nation now takes care
of its demand note" and of its fu-
ture funded obligations. All such
nations-particularly France-are un-
derstood to be looking to early in
crease of private loans in the United
States, which are today barred by the
postponement of settlement of the
war loans.
The French government. at times
has undertaken to set up certain off
sets against Frances debt. Prior To
our entry into the war France had
been borrowing here from private
financial institutions. but our Govern
ment's undertaking to act as inter
mediary banker for all war loans need
ed saved France in interest some
$50 .00o, 900 q year-up to date approx
mately s240, 900 900.
Nevertheless, former French Min
lister of Finance Clementel divided the
debt to America into two classi1iCa-
tons financial and political
and, while recognizing the obligation
to pay interest on the financial debt.
due private lenders and due the Coy
ernment for war supplies sold u
France after the armistice, he held
that all the Government loans of about
81 900, 100000 are political debts" on
which no interest was to be paid. re-
gardlesS of the signature on the dotted
line Of the demand note of France.
Since every French soldier killed in
. y Il % EN,-,,, E
that amount, he claimed, should he
credited on the political debt" This
was to be adjusted Internationally by
all the allies pooling their debts and
credits, and the final settlement To he
made in proportion to the wealth and
sacrifice of the respective nations in
volved in the war
This proposition has been repudiated
by both the United States and Eng
land. but its psychology In France
may still have influence in the tinal
efforts toward settlement.
Last January Deputy Marin, in the
French Chamber. set up the claim
that all dead soldiers should be credit
ed on the interallies' debts at the rate
of $4,000 francs each, and that Franc"
was entitled to such credit for about
2, 100000 soldiers killed in battle and
dead from wounds after battle. Also
that France had made concessions in
the treaty of Versailles based upon
President Wilson's promises. subject
to the Senate's approval, but that
when the Senate refused to so ap-
prove France became entitled to
greater compensation.
This speech was answered by Sena
tor Borah the following day. when in
"a Senate speech he declared: "If
France asks for better terms than the
British terms, she is tinessing for can
collation.: her logic, if such it can he
called is the logic OF repudia ton.
4 =
While France suffered greater war
than did any other coun
try. except Belgium, France received
in the Versailles settlement with the
enemy Alsa sace-Lorraine, with an area
of 5,605 square miles and a population
Of 1.709,749, mostly French. She also
received added area-good agricultural
land-in Apica, Africa, 107 ,270 miles
and 100000 population. and man
dates over Togoland and CAMERON
and over SYRIA total area of about
$4,000 square miles with a population
Of 6,000,0 900. She thus gained terri
tory one and a half times that of
France. besides Is years control of
the iron and coal Of the Saar Valley,
100000 tons Of German shipping and
a quarter interest in the oil of Mosul
and Bag gdad. The United States re-
.ceived one dirigible gasbag-the Los
Angeles.
La Fayette, we are here.' During
the American Revolution France
loaned to the colonies a total of So 352.-
500-not billions. but millions This
debt was all funded at Az and 5h, per
cent interest, and paid in full-half in
1903 and the rest in 1915.
trcsyriEAt. 1925. by Paul Y. coiiinak