Evening star., 1926-04-18

settled their debts with the United
States. When settlements In these
cases have been accomplished, the
policy of debt consolidation inaugu-
rated by the Anglo-American agree
ment will at last bear fruit. Europe
then will know the fun extent of her
debts and the United States will be
enabled TO make a balance OF credits.
This will be an excellent starting point
for striking a financial equilibrium on
both continents.
1t is remarkable that the delay In
ratification of the Italian agreement
has caused Paris TO be more inclineo
at present even than Washington TO
resume official negotiations. 1t will be
wise to take advantage OF this con-
ciliatory mood.
Ready for Concessions.
The settlement plan has been under
consideration by experts of the Frehch
Embassy and the Treasury. France
is so desirous OF coming to an under
standing that her Ambassador has
recommended sacrifice of certain fea-
lures of the CaillauX plan on which
the Washington conference broke
down last September. 1t will be dlf-
ficult. however, to make French pun
lie opinion accept proposals under
which the total of the annultleS is
larger, and the amount OF the maxi
mum annuity exceeds conslderaDiy
the average figure of 500, 100000, be-
yond which the French government
would not permit NJ. CaillauX to go;
Besides this. discussion on what has
been called the safeguarding clause
providing that France should agree
to nothing beyond what she Will get
hack from Germany, again has become
acute. 1t is declared that between
lust nations, having a strong affec'
ton for one another, it Is nor heces-
sary to include in the settlement a
provision for revision.
It is true that the American Gov
ernment has stated repeatedly that II
wished to negotiate separately with
each debtor, because it desired TO be
guided by the capacity OF each to pay:
This principle, written at the head
OF the agreement, would be a real
safeguard to both parties. Thus
France would not benefit from the
advantages which the seml-rupture
in September permitted Italy to OBJ
tain.
Settlement Much Sought.
There is reason to believe that the
French opposition will use these con
cessions against Premier BRAND. But
the press and business circles would
welcome a settlement, especially II 1t
has a salutary effect upon the franc.
which balancing of the budget has
been unable to accomplish.
It is not sufficiently taken into con-
sideration in the United States what
a bankruptcy of France comparable
TO that of Germany would mean. All
the capital invested in Europe by
American banks since the war would
be endangered, Frances financial sys-
tenn would collapse, and European
civilization would be menaced.
Even the Germans realize these
facts. The Berlin Morgenpost said re-
Gently: "A nation cannot be isolated,
either economically or politically.
Germany, which has vital interest in
increasing it's exports, would be fool.
ish to rejoice at a French financial
breakdown"
These words resemble those of Sec
retary Mellon of the American Treas
ury. Europes prosperity is absolute
ly indispensable to Americas pros
perity, and the prosperity of the whole
world. I'VE need all our customers"
Mr.. Mellon phrased it.
Churchill View Cited.
Later. when equilibrium has been
established, it will be easier to judge
Of the advantages and the disadvan-
tages. AS Winston Churchill, the
British chancellor of the exchequer,
said the other day: 1T is quite clear
that the United States will be receiv-
ing at least so per cent Of the total