Evening star., 1925-08-31
Caillatx Optimistic,

The announcement that NJ Joseph
.Caillaux, minister of finance of France.
sTpects an agreement on the war debt
with the United States within nine
days after his arrival at Washington
on September % auGurs we'll for the
success of the. coming neSotia tions
There Is, indeed, no necessity of pro
tnacted -sittings of the French and
American debt commissions.
The French government has been
aRprised fully of the attitude of the
United States toward the war debt of
that country, of the desire of this
country to be entirely fair and lenient
In the matter of terms. as it has been
IN the case Of the other European ma
lions whose debts have already been
funded. And, on the other side, the
Government of the United States
Should be in a position to know al
ready something of the ability of
France to pay" which it is expected
viii be an important factor in dc
termining how and when France is
tohnlake payment of her debt. Under
s9eh circumstances there seems no
real reason for delay in reaching a
settlement, particularly as there can
be no disagreement as TO the amount
Of. the debt
M. CaillauX is coming to Washing
fon at the head of a commission
which will include influential members
Of the French Senate and Chamber of
Deputies. The debt settlement nego-
tiated here must meet with the ap-
selection, therefore, of members of
that body representing various politi-
cal parties therein, who can speak
authoritatively in Senate and Cham
ber regarding the negotiations and
terms agreed upon, is particularly
wise. The American commission also
rs made up of members of the legisla-
tive as. well as the executive branch
Of the United States Government All
war debt agreements must be ratified
by the American Congress, and it
would be worse than futile to submit a
plan of dealing with the French debt
which could not comrnand the support
of Congress.
> The policy of the United States Gov
eS'Timent with regard to the foreign
debts has been made clear to all. first
by the discussions in Congress when
the American Debt Commission was
created, and then during the discus
sion of the settlement with Great
Britain and other European nations
The cardinal principle has been dis
position of the American debt without
regard to German reparations and en-
tirelyi on their own merits. This prin-
ciple will be maintained in the agree
ment with France. 1t is true that
France owes to Great Britain a war
debt in proportions almost as large as
that to the United States, and that
tentative agreement of settlement with
the British has already been made. So
far as that settlement with Great Brit
ain affects the ability of France to
nay, it may have bearing on the
QSSOLldtiOIlS mere DuI II Is not eX-
pected to govern in the matter of rates
OF interest or the settlement of the
principal. Other war debt settlements
by the United States contemplate 81
annual payments with interest at 3h
or per cent. Such terms are ex-
pected in the funding of the French
debt. Concessions may be made, how
ever, with regard to the time of be-
giAninS full annual payments.
sDespite the fact that the debts have
been made a foot ball of politics in
France and other European countries,
the determination of France to meet
her obligations has been declared
again and again. The funding of the
interallied war debts when completed
will be great step toward the eco
Ronlic- stability which has been the
pressing need Of Europe ever since the
armistice was signed. When a nation
knaws what its payments are to be, it
is in Tar better shape 10 get down to
the work of making those payments
and at the same time sustaining the
economic fabric than under conditions
IN which there is uncertainty and
doubt as TO what payments must be
made.