Evening star., 1925-09-14
u S. GLAD FRANCE
>TRUSTS CA|[LAUX
Giving Free Rein to Minister
Is Expected to Make
Settlement Easier.
2, the Associated Press

g, the Associ ated Press
Information conveyed in Associat ted
Press dispatches from Paris yester-
was coming To Washington with full
authority to negotiate funding set
tlement for the French debt To the
United States was received by mem
bers of the American Debt Commits
sion with considerable satisfaction
A Debt Commission spokesman de-
clared the announcement that NJ.
CaillauX had received instructions
o@ty of broad character from
PfAmier Painleve and that his action
would be subject only 10 the ratifica-
ton of Parliament had considerably
clarified the atmosphere. No mem
ber could now doubt, he thought, that
France meant business.
g. Free Hand Desirable.
I'VE are extremely gratifed to
know he said. that the mission will
come here without strings attached.
There would be no use in NJ. Caillaux
and his associates attempting to ne
sotiate a settlement without the full
Authority his government has given
him. We want the French TO feel free
TO talk about this problem with MS. hut
we also want them 10 know tha; We
expect a settlement"
The Paris reports gave no intima
tion Of the general ideas Of settle
ment which NJ. CaillauN was said to
have laid before the premier and lead
ing members of the ministry before
receiving the formers instructions
They described. however. a memeran-
dunn which the finance minister will
II =
represe nting the concrete result of
th$ conversations which Jules Jus
sefand. former French Ambassador to
the United States. had in January
Win Charles f.. Hughes, then Secre-
tary of State. and Secretary Mellon.
The gist of the memora ndum was
reported TO be that should France pro
pose TO amortize its debt to the United
States by paying one-half OF one per
cent OF the principal annually for s.
years, the American debt commission
would consider in the most liberal
spirit the question Of interest
Believe Figures Wrong.
Whine Treasury officials here were
unwilling to discuss the Jussera nd
memorandum. Under Secretary Win.
ston, the debt commission secretary.
said the one-hslf of one per cent
have referred to the initial payment
made by several Of the foreign powers
under the 62-year settlement plan He
called attention to the fact that after
the first year the annual payments
grew gradually larger, so that the
amortization rate was very much
greater in the latter part of the fund.
ing period
Since, If France should paw only
nn.ho nf
debt II would require 200 years or
more to retire the obliga ton, the be
lien prevailed here that Mr. Caillaux
has been misunderstood In regard to
the memorandum
II was figured in the Paris reports
that should an amortization rate of
orrethalf OF one per cent he adopted
in-the settlement. the $4,000 900 a
year. or 5 per cent. which France has
been paving on the $500. .0oo. 900 post.
war debt for purchase OF army sup
plies, would more than cover the
ambrt1zation on the total debt This
calculation was on a basis of the $500.
100000 included To make the total
French debt $1,000 600 900, without
accrued interest.
Financial Status Studied.
Advised in the Paris dispa tches that
~ 6iiio "a hdh prepared OelSlle0 0aIa
on the French fiscal and. economic
position, Treasury officials pointed out
that the American debt commission
also would be fully informed as
result Of several separate studies that
have been made here. SecretaNy Mel
lop said few days ago that a study
or The French governments financial
condition had been made by Treasury
officials. and 1t is known that Secre.
tary Hoover. another member of the
commission. has also gone thoroughly
into the French economic position
with view to forming some definite
idea as to the nations capacity to
pay.
In addition. Edward y. Hurley of
Chicago. who has made two visits to
France since the question Of it's debt
csTne 10 the front and who at one
time prepared a funding plan. is
familiar with the problem and Repre-
sentative Burton of Ohio. after spend.
Ing much Of the Summer In F,urope
attending the arms traffic control con.
ference, proba bly, win have additional
Information for use NJ the commits.
sion. of which both are members
Under Secretary Winston has, been
guiding the Treasury inquiry into the
general economic and financial situ-
alton of France since his unoff,ciaI
visit TO that country last Spring. when
he talked privately with hall a dozen
high officials Of the Paris government
and presumably received some surses
tions from them
CATLLAUX'S POWER FULL,