New Britain herald., 1925-09-30
CRISIS AT HAND
 IN DEBT FARLEY Success or Failure Likely Within
 Next Few Hours CHANGES ARE PROPOSED
'. S. Reduces Proposed Annuitics 20 Million-pro,ision Also Asked For Revision If Facts Warrant French Plan to Leave Tomorrow.

Washington, Sept 30 tR-The debt negotiations between the French and American missions seek ing to fund the o,000,000 French war debt moved rapidly to- day with the negotiators nearer to- gether than they have been since the discussions began.
 Provision For Revision. It was indicated that it had been agreed that clause should be in- serted in any settlement for a re- vision of payments in the event that it should become evident on both sides that the French capacity 10 pay had been over-estimated and in addition the American commission has reduced the proposed annuities from s150,000,000 to s130,00n, 900. Both of these plans are considered of great importance by the French : delegates.
 i The American commissioners went into separate session early in the day. Prior to the meeting Senator Curtis Of Kansas, the republican state leader, conferred with Secre- ] tary Mellon, chairman of the Amer i ican group.
 Another Possible Delay. Another proposal would delay pay ments in the event of the exchange market not being favorable to the 1 transfer of cash on the date fixed, thereby giving the French treasury a certain freedom of movement in choosing the more favorable time of transfer.
 The French group, tt Is under Nood, had not accepted these figures but a way may be found for keep Ing down the French annuities by extending the term of years from 62 to 67, or 70, or T5. Each of these terms of years is being examined.
 The term of 62 years in the Eng lish agreement was taken as q basis because with the interest rate of 3ia per cent the entire principal would be amortized at the rate of one-half of one per cent. year. The French, 1t Is understood have been setting forth the advantages to them of a longer period as they could thus reduce their yearly average.
 Before the joint session of the two groups today they held separate meetings to 20 over the situation. the Americans to consider the posst- bilities of the situation, and the French 10 further study statistical data.
 French Leave Tomorrow.
 With the French mission prepar- ing to leave the city tomorrow, 1t was realized that developments of today would largely determine whether the negotiations would be successful,
 No one on either the French or the American side would predict either settlement or a failur. but 1t was generally indicated that the situation had reached point where developments might throw 1t either way.
 There were many unofficial con feronces among the groups during the day, ono of them being meet ing between Secretary Mellon, head of the American mission, and sena- tor Curtis of Kansas, republican senate leader.
 Might Re 100 Years The nronosa1 to extend the term of years and keep down the French annuities Is based on an acceptance of the argument that the French economic situation today precludes terms which would wipe out the whole debt in 62 years as Is the case in the British settlement Those who favor the idea point out thai the prospective economic rehabilita' tion of France during the next two or three generations would enable the nation to take on a heavier bur den as times goes on. For the pur' nose of arguing out the proposal and F subject 1t to a complete examination the idea contemplates that the per , iod of payment might even be ex' $ tended to a hundred years or ever r longer.
 ? On such g reckoning an interest l rate possible beginning as low as one
 per cent or one and one-half pei ; cent would rise to higher rates al - time goes on, and by extending tho . period of payment into a longer time ]. the result would be the same in tho } end.
 In nutshell the idea contem , plates that France would pay just al much in the end. but would have