The Washington times., 1925-10-14
BLUFF. IS.
CALLED on
LOANS,
U. S. Officials Deride Claim
France Can Get Money, De-
MED Here, of Swiss
By GEORGE r. HOLMES

A1y Nt1OA&uAI he 41OLNAGl0
The American Government has
decided finally to use the big club
of international credit to bring its
clubbing debtors to the Treasury
window to take up their notes.
This, in effect, is what lay be-.
hind the blunt warming that has
gone out from the White House to
the world in general, and to Paris
in particular, that American purse
strings are to be closedS to those
nations that are evading and deny
ing their plain obligations to the
United States.
Forced by Congress
# is policy that has been de.
cided upon finally with consider
able reluctance, and at the IN
sistance Of powerful members Of
Congress, who have threatened, and
are still threatening to enact legis-
lation this winter that will enable
the business of foreign loans.
One such bill, It was learned to-
day, has already been drafted for
introduction as soon as Congress
opens. It would repOse In the
Treasury authority to regulate
bankers. loans to foreign govern
ments in somewhat the same fash
ion that the Interstate Commerce
Commission now regulates railroad
financing.
Neither the Administration nor
the big international bankers want
to see such a bill enacted, the for
mer because it is opposed In prin-
ciple to any more governmental reg
ulation OF private business, and the
latter because such d law would
put big crimp in their business,
Consequently, It Is the confident
belief Of Administration officials
that Wall Street viii heed the
White House warning and engage
in no foreign financing without
washington's quiet, Il unofficial
sanction.
Eyes On Paris
Officials generally had their eyes
turned toward Paris today to see
what effect the pronouncement win
have there in acceleratipg the
French cabinets approval OF the
five-year truce agreement carried
back by Joseph Caillaux Despite
the abuse of the United States in
the Partisan press. and the Shy
toock'' accusations shouted by hot
heads, the belief is strong here tina.
the temporary agreement win, in
the end, be ratified. This conf
dence is said reliably to be based
upon assurances privately given by
NJ. Caillaux before his departure
from Washington.
According to. Treasury experts,
Frances financial situation is little
short of desperate. NJ. Caillaux's
entire financial reorganization
4 successful conclusion OF a dept
successful negotiation of additional
credits in New York. Having failed
IN the first instance, he also failed
in the second mission.
To add to NJ Caillaux's bag OF
troubles. the new gold internal
loan, which was floated In France
Just prior to his departure for
Washington, failed even while he
was conducting negotiations here.
The response of French investors
to the new loan fell far short of
what had been expected. The time
for closing the books on this loan
has been extended without much
additional success.
CaiIIaux's Bluff Called
NJ. Caillaux had informed mem.
bers OF the American Debt Commits
sion that this loan was going to be
a huge success. He also told sew
eraf members Of the commission
that II was not necessary for
France to find funds in New York
for rehabilitation and consolidation
purposes, as Swiss bankers stood
ready to advance money for these
purposes.
The American commissioners
listened attentiveiy and privately
regarded such statements as 80
much caRouflage," as one Of them
phrased it.
1T will be interesting now to
note" this member said today.
s'how speedily Swiss bankers bring
forth the millions needed by NJ.
Caillaux to effect his reorganization
The American market is
ofaaod