Evening star., 1926-06-01
COLLIER OPPOSES
FRENCH DEBT PACT
Blocks Green's Move to Brinq
Funding Agreement to
Vote in House..

| The French debt settlement was
| taken up by the House today. with
| leaders prepared to press for a final
vote before adjournment tomorrow.
The agreement involving S6,847 674,-
600 in principal and interest, and sec
ond only in size to that negotiated
with Great Britain. proposes funding
Of the amount over a 62-year period.
Initial payments of 100000. 900 annu-
ally for the first two years are Sradu-
ally increased thereafter.
Green Urges Vote.
Chairman Green of the ways and
means committee. in charge of the
settlement, sought an agreement to
vote today but this was blocked by
Representative Collier, Democrat,
Mississippi. Who heads opposition to
the proposal.
The settlement is expected to en-
counter greater opposition in the
Senate.
Makes Reports Public.
Mr.. Green made public today a
committee report warmly advocating
ratification of agreement.
Mr.. Green also made public a
minority report by Representative
Rainey of Illinois, a Democrat on the
committee, opposing acceptance, and
asserting that he can not see how a
member Of Congress. under his oath.
can vote toagive away the enormous
amount of money that we are asked
to in this settlement"
The chairman. who drafted the
committee report. reviewed the eco
nomic conditions of France and its
debts other than to the United States,
asserting that France began the war
burdened by debt larger than any
other nation in the world
France Taxed Heavily.
1T is sometimes thought that
France is taxed lightly" Mr.. Green as
serted. while it would appear that
the rate in proportion to the national
income Is somewhat less in France
than in England. it must be remem-
bered that the per capita income in
England is very much higher than in
France, and, being higher. the margin
for subsistence left after taxes are
paid is much larger for the citizens of
England than for those of France.
1T is quite obvious that If the
French national finances are to be put
on n sound basis that three things
must be done-first, the budget must
DS SeCO1lu, ltlo lTduC IlluSI US
stabilized at some point: third, set
tlement of it's foreign debts should be
effected on some basis so that there
may be a reasonable expectation that
payments could be made. These mat.
terS are SO interlocked that a failure
in one respect is almost certain to
bring failure in the others.
Need of Settlement.
ut ought to be clear that the con-
dition of France is worse than it was
a year ago and that If undue pressure
is put upon it it should be rendered
unable to take the measures which
will be necessary to balance the
budget and stabilize its franc and it
would be idle to expect anything
whatever to be paid on the debt owing
this Nation"
Mr. Rainey asserted it has been
reported that as soon as the settle
ment Is ratified n loan of $500, 900 900
will be placed by the Morgan and
allied banks with France, adding that
lit has seemed to me always that
these debt settlements are being
made and these tremendous sacrifices
of the money which belongs to the
tax payers of the United States are
being consummated in order that the
clients of the New York banks may
have opportunities to invest their
in foreign securities, which will
yield per cent more than any similar
investment