Evening star., 1925-10-04

nnally decided upon for the French
government TO pay on its debt to the
United States, II Is emphasized by OF.
ficials here. Is Of concern not only to
every holder of Liberty bonds, or re
curities for which they may have
been exchanged. but also to osery
American taxpayer.
The $50 sheets OF paper. which con-
stitute Frances promise to pay. are in
the custody OF the security division
Of the Treasury Department. They
are filed away in one OF the Treasury s
huge vaults. As explained, the obliaa,
tions for cash advances are in the
form OF certificates Of indebtedness.
Among the obligations for the war
supplies bill are 400 Sheets engraved
bonds. for $1,000, 900 each. These are
dated August 1, 1919. The other s..
100000 worth OF war supplies. sold
during tho following year. are repro.
sented by bonds and notes.
Nature Of Ooligatiens.
The obligations signed by France
for her loans from the United States
are OF the same general character rs
those signed by other governments,
according to the 1870 annual report
of the Secretary OF tho Treasury.
The earlier certificates Of indehteA-
ness says the report, 'were payable
at fixed dates of maturity. all which
are now past. so that they are now
held as demand obligations. They
bore interest at various rates OF, in.
terest from 3 per cent per annum
upward. Those subsequently taken
are payable on demand and bear in.
terest at S per cent. By arrangement
with the respective governments. sub.
stantially all the obligations have,
since May Is. 1918, borne interest at
the rate OF per cent. The certifi-
Gates of indebtedness are receivable
in payment for bonds of the debtor
government or else are convertible
into bonds in conformity with tho pro.
visions of the various Liberty bond
acts in effect at the respective dates
of the certificates of indebtedness.
A sample Of the skeleton agree
ment, as given in an annual report
of the Secretary of the Treasury,
with tho name of France" substi
tuted for certain blank spaces In the
skeleton as printed in the report
would read as follows:
Sample Agreement.
"The Government Of France, for
value received, promises to pay to
the United States of America, or as
signs, the sum Of number of dollars
in words) on demand, with interest
from date hereof, at tho rate Of (rate
per cent? per cent per annum. Such
principal sum and the interest thereon
will be paid without deduction for any
French taxes. present or future, ir
gold coin OF the United States Of
America. of the present standard OF
weight and fineness At the Subtreas
ury of the United States in Now York
or, at the option Of tho holder, at
tho Treasury Of the United States In
Washington.
This certificate will be converted
by the government Of France, IL re
quested by tho Secretary Of the Treas
ury Of tho United States Of America
at par with an adjustment Of accrued
interest into an equal par amount st
(rate of per cent) per cent convertible
gold bonds of the government Of
France, conforming to the provisions
of acts Of Congress of the United
States known, respectively, as second
Liberty bond act, third Liberty bond
act and fourth Liberty bond act. II
bonds Of the United Statss issued un
der authority Of said acts shall be
converted into other bonds Of the
United States bearing a higher rate
Of interest than ~ per cent Der an.
mum. a proportionate part Of tho obh
cations Of the government Of Francs
Of this series acquired by the United
States under authority Of said actz
shall, At tho request Of said Secretary
Of tho TroAsury, b. converted into
obligations of said government Of
France bearing interest At 4 rate ex.
ceedfng that previously borne by thu
obligation by the same amount as the
interest rate Of the bonds Of the
United States issued upon such con.
version exceeds the interest rate OF
(rate Of obligation) per cent, but not
less than the highest rate Of interest
borne by such bonds Of the United
States"
Second Trip Here.
NJ. Caillaux's trip - the second by a
French mission. An attempt was
made in 1929 to diacuss tho French