Evening star., 1925-02-17
FRANC FALL DELAYS
DEBT NEGOTIATIONS.
Support of Funding Arrange
ment Unlikely Until Internal
Order Is Restored.
BY FREDERIC WILLIAM VILE.

Desires on the part of NJ. Emile
Daeschner, the new French Amoassa-
dor at Washington, to approach
debt settlement with the United
States are seriously complicated by
the new franc crisis in Paris. With
the franc once again lowering around
8 American cents in value-round-
ly, one-quarter of its par worth-the
French government is confronted
with domestic economic conditions
which must take indefinite prece-
dence over matters like foreign debts.
Until these conditions are normal
lied. or semi-normalized, no premier
of France could face either his Par
1fament or French public opinion
with any hope of support for fund
ing arrangement with the United
States. 1t is a case of Charity be-
ginning at home"
The French insist they must put
their own house in order before they
tackle less urgent matters. They
class the $4,000, ,000,0 owing to the
American Treasury as far less urgent
than the restoration of the franc to
something like it's normal value. In
deed, until the French monetary sys-
tenn is bolstered up, 1t is contended
that no discussion of debt funding
has any practical merit. 1t will re-
main purely academic. Tax reforms
Rnd economy programs will have to
be put through before debts can be
tackled.
Sympathy for Plight.
There is understanding for this
view of Frances plight on the part
pr Washington officials. The Coolidge
administration has never contem-
plated pushing" France. In no Con
Versations" or negotiations" which
Il 10 -t.l~ Mt
ing Commission was he ever given to
understand that the United States in
Tends bringing the pressure of A hard
ened Dill collector to bear upon the
farls government. About as far as
we nave ever gone was indicated by
president Coolidge's observation to
"a. Daeschner at the White House at
the end of January. The United States
wants and expects France to begin
TO give studious attention to her ma
Serlal debts now that, in American
opinion, debts of gratitude" have
peen written from the slate, paid in
, tull. That the French authorities are
giving serious attention to the Ameri-
can ana the British debts Is unuues-
Nlona Die. But events now transpiring
on the Bourse in Paris with regard
TO the franc may be expected to re-
suit in fresh and indefinite post
ponement of any "brasstacks" deal
ings over the debts. The spirit on the
Quai d'orsay may be willing, but the
economic flesh is weak.
Pays Considerable Interest,
1t is practically unknown to the
American public, though, of course.
not unknown to the Treasury, that
France is paying the United States
a very considerable interest charge at
the present moment. Only few days
ago she paid US S10 000, 900 odd, as
haf-yearly installment. This represents
one-half of the per cent interest the
French owe US on the item of s4O7, ,341,-
3a5 due from them for the war supplies
railroad materials, etc.-which the
United States left in France after the
war. France has kept up regularly the
semi-annual interest payments on
thls great purchase transaction
Inc American and British debts are
classed as political debts" in France,
as was recently revealed on the oc-
casion of Finance Minister Clemen-
tells report. The French distinguished
these from so-called commercial
debts owed abroad. The United
States figures on the list of French
Commercial debts" to the extent, of
more than S200,000,000. The bulk of
these obligations Gas Is also not gem
orally understood) was incurred two
and three years after the armistice.
We foated an per cent loan to
France in 1920 aggregating sS4,175,-
900, and a 71a per cent loan in 1921,
totaling s75,130,20O. The so-called
Lyons Bordeaux Marseilles 1919-1934
loan accounts for another post-armistice
advance of s40.500,000 to France.
Other non-political external debts"
owing by France include: Bank of
England, f55, 900. 900; for British war
stocks in France, $4,000, 900; Neither
lands, 55,OOO,00O forms: Argentina,
19,425.795 gold pesos; Uruguay, 49,
100000 gold pesos; Canada, s230,000;
Egypt f2.0OO,0 900.
At the end of 1924 the French paid