Evening star., 1925-08-09

overpopulaion in France. On the
contrary, France is encouraging i'm
migration to make up for the loss
of man power in the war. There is
work for every one who wants work
at wages which the French workers
cannot help but find highly satisfac-
tory. OF course, there is not complete
industrial peace. That is not to be
expected in any great industrial ma
ton, especially with people as highly
temperamental as are the French.
When the longtime view is taken
there are factors other than the pres
ent and prospective prosperity of
France which justify the belief that,
given time and considerate terms.
France can pay the principal of the
sums she owes the United States and
England. The French debt to the
United States is slightly over $4,000
600, 900 and to Great Britain slightly
under $4,000, ,000, 900, or about $1,000
600. 900 in all. To offset this there is
owed to France by other governments
a little less than $4,000. 100000, of
which $1,111 100000 is owed by Rus
sia 1t has been the habit in France
to regard all these debts as uncol-
lectable, but the present outlook does
not justify this contention. Some of
the governments which are debtors of
France already have funded their
debts to the United States and 1T is
a reasonable expectation that in time
they will fund and begin payments
on their debts to France. l find we'll
informed opinion that in time the
force of world opinion will. compel
even Russia to recognize and under
take payments of her external debts.
Effect of French Example.
None Of Frances debtors has yet
undertaken funding operations. and
the reason is quite obvious. So long
as France was talking about cancel
lation or Reputation of her own debts
her creditors cherished the hope that
they also might profit by that easy
way out. They abandoned hope that
they could escape from their debts to
America and have either funded or
are proposing funding negotiations
They will follow the same course with
respect to France when, by abandon
ing her own hope Of escape. France
destroys a like hope in the breasts
of her debtors.
AS 1 said in a previous article,
France needs enlightenment as to
to the war debts. French political
leaders have not dared tell their peo-
pie the truth about the American debt.
just as they did not dare for years
to tell their people the truth about
German reparations. And there are
only a few leaders of French thought
outside of political life who seem to
have either the courage or the desire
TO tell the truth 1t is refreshing,
therefore, to find Stephane Lauzanne
in his newspaper, LIE Matin, striving
to set the French people in the way
of right thinking. My attention was
directed to an editorial he published
some time ago, which was so fair a
presentation of the case that l clipped
it for my files.
NJ. LauZanne has made many trips
to the United States and knows
American modes of thought and he
manifestly is anxious to do justice to
both the American and the French
points of view. In discussing the debt
problem NJ. Lauzanne says the French
argument is based on two main
points: First, that the dollars loaned
to the French were worth at the time
from 5 to 6 francs only, while the
dollars needed to repay the loan are
worth at the present time from 19
to 20 francs; and, secondly, that
France borrowed and expended these
dollars, not for herself, but for the
benefit of a community Of which
America formed a part, and that this
community of interests should operate
to cancel some, if not the greater part,
of any debt of this kind.
NJ. Lauzanne sums up the Ameri-
can reply to these points as follows:
First, that it was dollars, and not
francs, that America loaned to
France; and, secondly, that while the
idea of this community Of interests
certainly existed in the hearts of the
peoples who fought together, "it never
existed in the financial accounting or
the payments incident to the war ex-
penditures."
United States Paid for Services.
AS a proof that this community of
interests was not recognized on the
allies side, NJ. LauZanne quotes AS
sistant Secretary of the Treasury
Winston as saying that when the
United States sent it's 100000 SOL
diers to the German front it had to
ask England for the ships to carry
them across the Atlantic and France
for the railroads to transport them
across French territory and that the
United States has been obliged to pay
$500, ,000, 900 for the boats and many
millions of dollars for the railroads.
On the basis of these two arguments
what is the best way to proceed?
For M. Lauzanne the answer is plain.
No use to ask France to pay any
thing substantial now. 1t would mean
French bankruptcy. But, in fact"
he says, America and American
friends having full authority, as far
back as last November, clearly let M.
Herriot understand that America was
disposed to accord a moratorium.
Suppose that this moratorium was for
10 years. We would have nothing
then to pay until 1886. Ten years
is period of time which counts.
In 10 years, il fortune favors us, we
will be financially on our feet. And
If we were not on our feet 1t would
be always possible to appeal again to
their generosity or refuse impossible
demands"
Debt Settlement Likely.
1t is because there are Frenchmen
like Stephane Lauzanne, and because
in the end the sound views of such
Frenchmen must prevail, that I be-
lieve the Forthcoming negotiations at
Washington will produce a settlement
satisfactory both to France and the
United States. 1 know that both
the American Government and the
American people are disposed to be
lenient with France once France
abandons her policy of evasion and
gets down to business.
When I recall the satisfaction I
found in England resulting from the
fact that settlement had been made
of the British debt to America I am
not apprehensive that a settlement
of the French debt will cause any per-
manent or serious ill-feeling toward
the United States. On the contrary,
1 think that once France makes up
her mind that she must settle and
proceeds to toe the mark we will be
better friends than we have been for
a long time. 1t is so as between indi-
vidual creditors and debtors, and the
psychology of nations is but the COM