Evening star., 1925-09-05
i. S. CASH OUTLET
SOUGHT IN FRANCE
Debt Settlement Would Give
Investors Safe Place to
Put Their Money.

There is no concealing the salts
faction felt here that NJ. Caillaux,
French minister of finance, and a
delegation fully authorized to nego-
tiate a settlement of the French war
debt will be in Washington within a
fortnight.
Until the definite announcement of
NJ. CaillauX'S coming was made Off
cials were skeptical about the out
come of the negotiations. They rea-
soned that if he did not come it was
because he felt there was little chance
Of settlement. Now that he is com
ing with a delegation Of influential
members of the French Parliament
there is a confidence that within the
next three weeks the United States
and France will have erased from the
boards their one outstanding diplo-
matte problem, which has been affect
ing international relations for several
years. The settlements with the
smaller countries are expected to fol
low as matter of course. Politically
they have not been disturbing. The
big problem has been France.
Entirely apart from the terms OF
the settlement, the administration is
counting upon certain results in an
economic as well as a diplomatic
sense. Opinions may differ as to
whether France ultimately will pay
all that she promises and whether
she viii not periodically ask for a
revision of terms, but there seems to
be no doubt that. once the settle
ment is reached, the American Gov
ernment Will prove itself even more
sympathetic in the future than it has
been in the past to the question of
upbuilding European finances. No
ban VIII be placed on foreign loans
TO be f1oated by private bankers here
and every encouragement will be
given to the use of American capital
to help commercial enterprises
abroad. The American money market
is eager for some good investments
and the needs of the United States
have been fairly well absorbed. The
surplus of capital is seeking a use
and that is expected to be found IN
Europe
Behind the settlement of the debt
question, therefore, may be said 10 be
a deliberate policy of the Government
to bring about an outlet for American
investment. 1t is felt that, just as the
Dawes plan tended to stabilize credit
conditions abroad, 50 a settlement OF
the American debt question will be fol.
lowed by somewhat similar settlements
between the allies themselves, so that
all countries will have clear idea OF
future obligations and the investor
apprehension Will be to a large extent
removed
The next step in the evolution OF
the Government foreign policy after
the debts are settled is to urge a re
.duction in armaments. Mr.. Coolidge
Will be arguing economy with the com
ing session of Congress here, advising
large cuts in the expenses of both the
Army and Navy. European disarma
ment conferences have been proposed
from time TO time, but Mr.. Coolidge
has felt, as have Secretaries Hughes
and Kellogg. in the Department oi
State, that it would be futile to tackle
the question seriously as long as inter
allied debts and the security protocols
were hanging in the balance. AmerS
ca influence after the debts are set.
tied viii be exerted in the direction OF
conferences that will aid in solving the
armament problem.
CCopyright. 1920