Evening star., 1925-10-05
Held German Marks.
Writer Cites Frances Action in
17C5 Toward u. S.
To the Editor Of The Star:

To the Editor of The Star:
AS an indication Of the attitude OF
the French government toward the
American Government at the time the
American Colonies were financially
embarrassed soon after the Revolu-
ttonary War was over, readers OF
your paper may be interested in
knowing, when France became our
important ally during the War of the
Revolution, it loaned Congress large
sum of money, but this being insuffi-
ctent to procure us the necessary sup
ply Of military stores, additional loans
were made from the royal treasury.
These being inadequate, we endeav-
ored to obtain further loans from
European countries which the French
King guaranteed. American indie
pendence was established through the
expenditure of $l76 100000 and $12,-
900 900 Of that amount was borrowed
abroad. The French government
after the close Of the war protested
against the use Of the deprecated
paper money Of America in payment
| Of debts owing to French subjects by
| debtors in the United States. Diplo-
matte correspondence between NJ. de
Marbois, charge d'affaires of France.
New York. May 16, 1885, and John
Jay, Secretary Foreign Affairs, con-
tained in part:
90 orders have been received by
me to press Congress in the name Of
the King to take effectual measures
to satisfy the French creditors Of the
United States, and to give an account
of the arrangements which shall be
made by that body.
'One of the most important sub
1ects is that of loan office certificates.
The underwritten cannot enter into
the detail of the deplorab BILE state to
which many French subjects, holders
| of the certificates, are reduced.
THE interest accumulates yearly,
| and the complaints OF these foreign
creditors are the more urgent as they
| see by the payments made to the cit
| liens that it is not through the want
Of resources and means that they are
not paid. but through reasons very
distressing to the friends of the
United States"
Further diplomatic correspondence
revealed that NJ. Otto. charge DAT
faires Of France, New York, in a COM
munfcation protesting against pay
| ment of debts in deprecated paper
| money, dated November 30, 1885, ad-
dressed to John Jay, Secretary For
eign Affairs. said in part:
These loans represented the labor,
| lic "dlC1liIISS anu the fortunes or
great number of individuals, who had
come to the assistance of the United
States in most tempestuous times
Ancient commercial houses in France
! find themselves reduced TO beggary
| from having placed too much con
| fldence in paper money and loan Of.
| flee certificates" His majesty can.
| not see with Indifference the losses
| sustained by his subjects"
l represent a large number Of
American citizens who sustained
losses through the depreciation OF
| German currency. In an effort to re
cover such losses by prosecution of
J their claims under the treaties be
tween the United States and Ger
| many / have had occasion to study
| the action Of the French King The
! result thereof was the American Con
gress In 1890 made provisions to pay
| French bondholders in full and not ir
| deprecated currency, as the German
government has attempted TO do il
discharging its national Indebtedness
which has made possible the paymen,
OF larger measure of reparations tC
france at the expense of American
citizens who hold German securities
An investigation made by the experts
attached to the Dawes Commission
| into the flight of the mark" discloses
| a loss to American citizens through
| the depreciation of German currency
OF several hundred million dollars
and corresponding gain to Germany
France has indirectly benefited by
! reason OF the German government en-
! deaVoring to escape its liability tc
| American citizens.
| LEWIS A. MCGOWAN.
| Counsel for Association of Amer
lean Holders Of Foreign Securities