The Washington times., 1925-10-27
FINANCES
BRING /
FALL.
Continued from First Page)

Continued from First Page.)
this political convulsion in Paris
will react ultimately to the bepe-
fit of an agreement on the debt,
and the belief prevailed that it will.
Debt Failure Factor
While it was generally recog-
nized that internal politics was at
The bottom OF the overturn, never
theless some officials here listed
the failure of the Franco-Arnerican
debt negotiations as one Of the
main contributing reasons.
Notwithstanding the hostility of
French politicians to anv debt set
dement, calculated to make France
pay on terms epproximating those
given other nations, French indus
trial and business leaders are in.
tensely DESTROYS OF seeing debt
agreement made, according to. ad-
ministration officials, who presurn-
ably base their opinion on private
advices.
The big French industrialists
want the debt controversy settled
because it viii improve French
credit throughout the world, tend to
stabilize the falling franc, and have
4 general stabilizing effect on
French commerce.
The failure OF NJ. Caillaux to reach
an agreement in Washington swas
followed by barrier being erected
to any more French credit in the
American money market by the
rapid decline of the franc. and by
French credit all over the world
falling under more or less sus-
picion. Il was the dissatisfaction
Of big business" in France with
NJ. CaiIlaux's methods and policies
that speeded his n1inistry's down
fall, according to opinion here.
French Industry Sound
Administrat en- leaders pointed out
today that French industry. aside
from the credit and exchange as
poets, is really in a sound and |
state. Production in
every principal commodity this
year is ahead OF 1913 production |
anywhere from to so per cent. |
Only the low rate Of the franc |
abroad keeps France from being in
a highly prosperous condition and
the franc connot recover until the
Frnch government SQUARES its obli- |
cations abroad and restores foreign |
confidence IN her credit.
1t was these same big Ere .1ch
industrialists who stepped in and
settled the Ruhr problem after the
politicians had kept 1t burning for
months. officials pointed out today.
The steel and iron interests OF
HSmp
and compelled their respective gov
ments to get together.
Some such similar pressure from
French business is now looked to
bring about a resumption or the
Franco-Ame debt negotiations,
irrespective of what political leaders
an France head the new govern.
ment.
VIII Reopen Debt
Debt negotiations with Italy VIII
open at the Treasury on Monday,
and confidence was expressed by adj
ADMINISTRATION officials today that the
French failure will not be repeated.
The American and Italian commits
SONS. at the outset, will have .
general basis Of agreement, 1t was
said today by one member OF the
American commission. Informal
negotiations which have extended |
over many months have resulted In
q basic agreement that capacity to
pay" will comprise the fundamental
consideration and there is eubstan.
tial agreement, too, on the state OF
Italy's finances.
Treasury experts who have spent
weeks with charts and figures on
Italian finances said today that the
Italian government is in better
financial shape than the French
government, having balanced its
budget on and stabilized the Ira, |
although Italian commerce and in |
dustry generally Is considerably less
flourishing than that Of France.