Newark leader. ([Newark, Ohio]) 1917-1946, 1925-11-13


The French government owes tn
taxpayers of the United States lit
tie over four billion dollars, larg
part of which was loaned to Franc
after the end of the war, and mud
Of which has been reloaned by Franc
to smaller European nations to Fl
nance their military preparations
The American taxpayers have bee'
paying approximately Az per Ger
interest on this money, and after se1
en- years delay the very astute Frene
Minister of Finance, M. Caillau
came to Washington to discuss Sc
tlement. All he asked was the sal
fairy godmother terms that the 4
ministration recently granted to e
gium.
In any intelligent discussion of
French debt, there are several
portant facts to consider, First,
larger part of our loan to France
not used to defend her against
many, but for the purchase of
plies, including much military a,
ment, after the war was over.
ondly, the French workers and f
ers are far more prosperous t
and face m-1chlies unemployment
bankruptc. than do the farme~
workers of America, who
analysis must pay this
does not AS matter or H.
is no large country in Europe
the farmers are more prosperous t
IN France today, and industrial un,
ployment is negligible or nonexistt
In the third place, France could req
every penny of her Indebtedness
the United States out of the fo
she is now wasting on her tv
pensive inperialistie wars ir
and Morocco and by elimine
cost of upkeep Of her lars
establishment.
To return to the debt
For a week all went mer
ding bell. The newsp;
front-page dispatches of
full progress made by th
and finally published the
given out by the offici;
of the French mission
ment had been reached
both Secretary Of the Trt
and M. Caillaux. Error
source" according to th>
papers, it was learned that t.
agreed to pay us little owe
hon dollars in seventy year
ming with payments of $4,000
year.
Then something happened
White House that caused an az
reputation of the alleged settle
by the Treasury Department. Tn
cident throws calcium light
certain force that is going to dis,
mode some of the Administrati,
important plans in the coming c.
gress. One William f. Borah fr,
Idaho, chairman of the Senate F.
eign Affairs Committee, who is
open and independent as the vest.
mountains he loves, is said to hav
called at the White House and let
be known that he considered tn
terms of the settlement such frau
upon the American people that h
would be honor bound to oppose con
firmation of the agreement by Cor
gress. Reduced to plain English,
appears that the French proposed t
pay approximately so per cent of tn
interest and none of the principal. T
put it another way, the settlemen
sanctioned by the Administration act
ually forgave France the entire prin
cipal of the war debt and 40 per cen
of the interest for good measure!
very elegant bargain for France an
for the American bankers who hav
underwritten French solvency, but
woefully poor bargain indeed for tn
American taxpayers who would hav
to stand the loss. The Administra
tion did not dare to court Borah'
vigorous opposition in the Senate, s
M. Caillaux' delegation returned hom
after agreeing with Secretary Mello
TO pay just one-fourth of the annus
interest charges ", the debt for fiv
years and then TO continue negotia
lions.
Meanwhile, the Fascist government
of Italy, which wanted to adjust it
war debt to US on the generous basi
of our gift to Belgian, has suddenl
decided that it can wait while long
er.
For a refreshing exception to tn
debt attitude of the great powers W
commend little Czechoslovakia, tn
seven year-old Republic carved out Q
the Austrian Empire following th
war. The Czech representative cam
to Washington, promptly arrived !