The Washington times., 1925-09-17
EASY
PAY FOR
FRANCE
Debt Commission Will Con-
front caiIIaux With Def
mite Data

M Joseph CaillaMx, the French
finance minister, now en- route 20
Washington to negotiate a settle
ment Of Frances $4,000, 100000 debt,
apparently Is dNe for a distinct
shock IL he reaches here with the
expectation of obtaining terms APP
probably more generous than were
accorded Great Britain.
On the heels of Senator William
E. Borah's warming yesterday that
any material departure from the
Rcitish agreement, in the case Of
France, will find hard shedding in
the Senate, Treasury officials has
tened today to disclafm any inten.
ton on the part of the debt fund
ing commission - grant France
any special considerations" that
were not accorded other debtor na-
tionS.
Data Made Public
AS If In standardization of the
Treasnry's determination to make
no undue distinctions in Frances
case, some OF the data bearing on
Frances economic position collected
by Treasury experts was permitted
to become public.
This data discloses that the aver
axe F'renchman Is paying consfd-
efably less taxes than the average
Rrilon and the average American,
and that the French tax rate. az
related to national income, IL con-
si6crahly lower than in Britain or
the United States. A series OF
charts, illustrating these figures,
has been prepared to meet the ex-
pecIed argument of M. Calllaux
that France is poor and tax
ridden"
The percentage of taxation to ma
tionaI income in Great Britain IS
23.2: in France it is 20.9;' in the
United States it is 1872, and in
Italy, 1872.
U. s. Figures Misleading
Treasury officials point out, how.
ever, that the figure for the United
States is misleading, and that 1t
in reality is considerably higher be-
cause of the multitude of local and
extraordinary taxes paid by the
average American that do not pre-
vail In either France or Italy.
The most comprehensive survey
Of French conditions has been made
by Treasury experts for use In the
French negotiations. For this
purpose everything that enters into
the economic life of the country
has been analysed in comparison
with American and British condi-
tions, shipping, exports and imports,
manufacturing, agriculture, bank
deposits, budgets, etc.
To the expected argument that
France is poor" and that her for
eign trade has been hard hit by
American prohibition on her wines
and liquors, the American experts
will reply that for the second time
in fifty years. French experts now
exceed her imports. That is but
one illustration of the arguments,
backed UP by figures. that the
American Commission is prepared
to confront NJ. Caillaux with.
None of the debt commissioners
subscribe to the view that IL France
meets the British terms in the
settlement Of her debt she will be
financially ruined
One Suggested Course
In this connection, one member
of the commission pointed out to-
day that If France merely would
increase her national tax rate to
that of Great Britain, the increase,
IL applied to amortizing the debt,
would take care of it handily.
Neither are the American com.
missioners prepared to accept any
! arguments relative 10 French Sc.
| curlty. European security pacts, said
Senator SmOot, the Senate's repre-,
| sentative on the commission, are
| Europe's own concern, and none Of
| Americas business.
Senator Borahs return 20 Wash
! ington with the announcement that
| he thoroughly disapproves of the
Belgian agreement, and is prepared
| to contest the French agreement II
| 1t departs materially from the
British settlement, apparently has
had the effect Of stiffening the at.
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