The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-09-26
j. s. STANDING
FIRM ON DEBT

lContinued from First Page.)
as are necessary and applicable to
Frances peculiar situation.
The chief departure from the Brit
ish plan is understood to be in the
terms offered France for the first
ten years Of the agreement. Ma
teriaI concessions have been offered
France in this first ten years be-
cause of the chaotic state of her
governmental finances. American
experts have calculated that even
a financial wizard" such as NJ.
Caillaux is reputed to be. will need
ten years to inaugurate the budget
airy and taxation reforms necessary
to put governmental finances on a
solid keel In Paris.
The theory underlying the Ameri-
can proposition is that France Is
prosperous, commercially and indus
trially that her economic resources
were greatly increased as a result
of war spoils, and that after this
breathing spell Of ten years she
should be eminently able to dis
charge her debt to the United
States on the same terms that seven
other debtor nations have agreed to.
While there is nothing in the
nature of an "ultimatum" in the
American offer, members of the
commission made it plain today
that there will be no material de-
parture from the terms contained
therein.
Hold Terms Generous
Not only do the American COM
missioners consider it a fair-even
generous offer-but they are fully
aware that much more leniency
would inevitably result in a con-
flict in Congress in December that
would not only likely result in a
refusal to ratify, but also lead to
embarrassments with those seven
other debtor nations that have come
to the Treasury and taken up their
burdens.
In this respect, at least, it was
said today, the offer which M.
Caillaux pored over today is, gen.
orally speaking Americas best
terms.
Sitting grimly at Capitol Hill and
closely following the negotiations
day by day are Senator William E.
Borah and several other influential
Senators. They have already served
notice that they will oppose any
plan that strays very far from the
British agreement.
In a letter to Secretary of the
Treasury Mellon, Senator Borah to.
day called his attention to reports
that a French settlement is to be
followed by the flotation of new
foreign loans in Wall Street, ap-
proximating more than 81 900 ,OO0,-
900. Borah asked, with obvious
r.
rate of interest on these loans,
knowing full well they will bear
Z or 8 per cent, and that M.
Caillaux is figuring on obtaining
some Of these enormous sums at
these rates.
BOrah To Draw Comparison
At the proper time Borah in.
tends to draw the comparison be
tween these loans, and M. Gail
iauX's picturesque protestations
that France Is unable. to nav the
American Government 3A per cent
on money advanced in her hour or
need
Despite the surface standstill OF
things today, optimism continued in
Treasury circles that M. Caillaux
ultimately VIII settle on the general
outlines of the offer he was study.
ing today, although it is recognized
a lot of hard bargaining must come
before agreement is reached.
If for no other reason than to
satisfy French public opinion, III.
Caillaux, it is pointed out, must
give the appearance of making a
hard fight.
France will settle because she
must" said a member of the Amer;
can commission, tersely. ms Gail
laux knows that he cannot go back
to Paris and report failure"
M. Caillaux himself reiterated to-