Evening star., 1925-10-04
IMPASSE In DEBT CONFERENCE
OF FAR-REACHING, IMPORTANCE
History of Loans Shows Source of Money Lent and
Use to Which 1t Was Put-EHect on
Other Nations Uncertain. :s

ton. There arH no governments In
| either country recognized by Wash
| ington.
In size Great Britain has the largest
| dent, of A.554 900 900: France Is sec
ond. with s4,210. .OOO, 900, and Italy
third. with $s.l3S,OOO. .O00.
Had France concluded a satisfa ctory
agreement, more than three-fourths OF
, the debts to America would have been
funded. AS the record now stands il
Is little less than half. with the fig
ures at about $5,235. 100000 out Of a
total of Sl2.l51 ,23S 900.
Other Negotiations Expected.
With the Czechoslovakian commits
sion already in Washington and Italy
coming the latter part of the month
the American Government is expect
ing others of the remaining countries
on the unfunded list to make over.
lures shortly. But there were no in.
dications yesterday either at the State
Department or at the Treasury as to
who will be next
The list of nations with unfunded
DEBTS Is as follows: Armenia, Austria
Czechoslovakia. Esthonia, France
Greece, Italy, Liberia. Nicaragua, Ru.
The French debt to the United States
now freshly disturbing factor in the
realm of international uncertainties
Is composed of two main parts: First
cash adva nces to Fra nee for the pur
chase of materials for prosecuting the
war. and second. a debt for American
war supplies. which the Americans
carried to France and sold to that re
public after the war. The. first par,
of the obligation is nearly 81, 900. 900,
| 900. while the war supplies bill |.
more than $40O. .000, 900.
! The French obtained the cash ad
vances In large number of INSTALL
| mentS, spread out over a period from
the first. on May s. 1917, to the last or
September IS, 1920.
Certificates Show Debt.
The obligations for these loans ar.
| called certificates of Indebtedness. anC
are typewriter on legalsize paper
They are on one sheet of paper each
and are signed by two French names
one that of the then French Amba ssa
dor. Jules j. Jusserand, or his repre-
sentative. The other, a countersigna
| ture, is an official of the French serv
| ices in the United States. of which NJ
Maurice CAsenave was director for q
long period. His name is attached te
many. The names of some members
OF the recent French debt commission
! appear on some of the certificates.
On the part Of the American Gov
the administration of the War Presi
| dent. Woodrow Wilson, and three sue
| ceedtng Secretaries OF the Treasury
McAdoo, Glass and Houston.
| The total amount of these cash ad
vances was $2,997.477, 800, which ha.
been reduced by 'repayments,
through adjustment of accounts, te
| 1888. .174,898
Phis money was practically all spen,
in the United States for supplies.
Among the things purchased b,
France here were munitions, horses
mules. cereals and other foods. tobacco
and silver, while substantial items ir
| the account are listed as ira ansporta
| ton, shipping. reimbursements, inter
| est, maturities, exchange and cottor
purchases.
Interest Paid.
On this obligation for cash advances
the French government paid interes,
| at the rate of per cent up to Man
Is, 1919. At that time there was some
| international discussion of a three
year moratorium for war debtors, bu,
| 1t came to nothing. France, however
| since then has paid no further inter
est regularly on the cash advance
portion Of her debt. although she ha.
| kept up interest on the second part
for war supplies. to date.
4, Tho interest paid by France on cash
advances, in all since the first ad
! vance in 1917, has amounted to
| $129,570,000.
On the war supplies debt, France
| has been paying regularly sc. $3.50, ,0O(
| each year, which amounts to a 5 pei
cent rate of interest. The war sup
| plies bill stands at $407 7.341, 1851, and
Is dated August l, 1919.
! The number and variety of things
which France purchased from the
American Expeditionary Force M ir
| France, under her war supplies trans
| action. as shown in Government rec
ords, is surprising.
Varied Supplies Bought.
| The largest item was for ordnance
| including, 1t is said all kinds of guns
| and gas supplies.
J The list itself offers a vivid picture
of some Of the things America left In
i France after the World War was over
| On this list are clothing. textiles
medicaf supplies, army food, kitchen
utensils, household furniture, machin
cry, metals. tools, hardware, building
materials, lumber, railway and dock
| equipment. transportation equipment
hospital supplies, chemicals, photo
graphic, measuring and musical In
struments: electrical equipment ant
supplies, oil, gasoline, paint. ordnance
gas equipment, printing plant anl
supplies, off1ce fixtures. stationery
hides, leather and air service appa
ratus.
| The money that was loaned t.
| France was borrowed by the Ameri
can Government from the American
people by authority of tho Liberty
loan acts, so the American citizen tt
realize how closely the French deb,
came to him, has only to recall the
Liberty bond he purchased, and know
that it was possible that the none.
he paid for it was loaned to France
Paying for Loans.
| On the Liberty loans this Govern
ment is now paying from az to ~
per cent, . sum which must come
now from the pockets Of the ta1pay
! arR, What tatAfOEk rata. IL ,nRoe> =