Evening star., 1925-10-01
FRENCH IN ERROR
IN TELLING OF PACT
Drew Wrong Conclusion
From Remark of Mellon.
Believed Offer Accepted.
BY DAVID LAWRENCE.

The misunderstanding in the press
reports which this morning prema-
turely announced an agreement be-
tween French and American mis-
sions is easily explained. When the
subcommittee consisting of Secre-
tary Mellon. Secretary Hoover and
Senator Smoot met with a subcom-
mittee composed of NJ. CaillauX and
two members of the French mission
yesterday the Americans asked that
the French put their latest proposal
in writing. Everything prior thereto
had been oral. NJ. Caillaux reached
for a paper pad and pen and wrote
out in longhand the detailed offer
and signed 1t. There had been some
suggestion that II. Caillaux had not
really come to make a settlement but
simply to make a gesture. His ac
ton in promptly signing an offer re-
moved all such impressions at once.
Agrees to Submit Offer.
Secretary Mellon took the offer and
said:
II cannot say whether this will be
accepted. 1 will agree to submit it
to the full membership Of the Ameri-
can Commission.
The French, however. jumped to
the conclusion that this was a signifi-
cant statement. and when the SUBJ
committee Joined other members Of
the French mission the word was
passed around that the Americans
had agreed to the French proposal in
subcommittee. Accordingly the In
formation was given by French
spokesman to the press. Several
! American correspondents, knowing
Secretary Mellon. Secretary Hoover
and Senator Smoot to be controlling
voices in the American commission,
promptly inferred that If the French
Information was correct the settle
ment had been reached. The state
ment issued at the White House was
designed to deny such reports. At
the time the statement was issued
the American commission had not
even met to receive the French pro.
posal. Informally, of course, Mr..
Coolidge had been apprised of it's con-
tents.
Proposal Is Unacceptable.
The French proposal is indeed un.
acceptable. 1t provides for "A pay
ment of an annual average of s40,-
100000 for five years and 100000, 900
for seven years thereafter, making a
total Of $500. 900, 900. and then the
annual payments would average
500. 100000 for Sc years. The French
| arrived at these figures in this way:
Having agreed to pay in all an aver
age of S100,000.000 per year the total
| amount due in the course of II years
would be 81 200. ZOO. 900. But in the
| meantime they would have paid five
times S40,000,000 and seven times
$50, 900 900, or a total of $500 0,0OO, 900,
| which when subtracted from the ST.
| 200, ,000.0 600 due in II years would leave
| $3.50, 100000 to be deferred. The
French suggested that this $3.50 ,OOO,- :
900 be paid after the 62-year period
had ended. namely In six years
| thereafter. the payments averaging
about $97 100000 per year. But the
| Americans feel that any sum post
poned as long as that would not be
| worth much In present day values.
Too Distant Maturity.
Any security which has such a far
off maturity date and bears no inter-
| est would not have much market
! value. The statisticians figure it out
j that dollar at the end of 62 years
| is worth about 3 cents in present-day
value, so the $3.50, 900, 900 would really
| be worth not much more than $17,-
| 000.0 900 in actual dollars today.
What the American commission
| wants is that the payments be so
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