Evening star., 1926-05-21
BERENGER CERTAIN
OF DEBT PACT 0. K.
Envoy Also Predicts Sta
bi'ization OF Franc viii
Be Achieved.
Rv the Assnclnted Press.

group ct French and American rltl'
%ens last night at farewell dinner TO
ne Ambassador, who leaves ior
France tomorrow to urge ratification
/ of the agreement More than 3oo
members OF The Franco American so
ciety. among them juri&tS, tinanclarS
and Army men. met at the Waldorf
! Astoria. Speakers told the Ambas'
sador that he had added an imperlsh-
able page" to the history of France.
| The Amba sSador said that he did
not feel tlattered because he had been
able to accomplish an honorable agree
ment with the United States Debt
| Commission, because their respective
parliamentS had yet to ratify sigma
| lures.
Sure Pact Will Triumph.
"AI future success will depend on
whethee the French Parliament is
willing to ratifN the Franco American
agreement which [ signed in Wash
ington," he said. II am convinced that
it will
Continuing. he said in part:
France has always honored her
signature. Even in the darkest and
most difficult hours of her history she
has ALWAYS settled her external debt
and provided the payments due there
on Notably after the war OF Io'0-
1871 she paid at the fixed hour and
even before the fixed hour the
> 900 600. 900 francs which were the
price of her liberation.
The engagements taken by France
10 the United States were of two
kinds: On one hand, cominefclai utp'
for goods sold, $407 ,0o0,000 redeem
able on August /, 1929, and bearing
500 600 600 of annual interest up to
that date. On the other hand, a debt
for goods furnished or money Ioaheu
bearing s.. .933 900 900, redeemabie at
sight and bearing per cent interest,"
redeemabe equally at sight.
The agreement which was SlShed
succeeds in Incorporating the Two
debts into one only, in dlStflputlhE
the payments over o. years, IN feuuc
ing the average rate OF interest from
per cent to per cent, in not over
loading the first annuities during l.
years, in giving France permanent
right of triannual report, which IS TO
he unconditional, at her WILL III all
circumstances, in full and absolute
national independence. The total
amount of the debt is thereby reduced
by SO per cent and the payment OF
S4o7 900 900 due in 1929, is suppressed.
Fair Dealing All Around.
action between the Treasury OF
France and the Treasury of the
United States. The creditor did not
exact everything. The debtor did not
refuse everything.
II have enough confidence in the
far-sighted wisdom Of my colleagues
Of the French Parliament to believe
that this agreement will be promptly
ratified. Without first settling the
external debt. no revaluation OF the
franc is possible, nor even a stablh-
zation. Now, can there be any mem
ber of the French Parliament who
would hesitate at any sacrifice to
stop the bleeding of the franc
mo doubt, there are discussions in
the papers and there will be debates
in the parliaments, but is 1t not to the
honor of free democracteS that Ii
should he so? But free discussions
do not exclude wise conclusions. | am
also convinced that French democracy
for her part will wish to put stop
to a misunderstanding which would
end by altering her amicable rela-
tions with American democracy
Confidence in France.
Il have the proudest and strongest
confidence in the destiny of France.
She may suffer temporarily from
monetary crisis, but this monetary
crisis is not an economic, social or
moral crisis 1t is one of the last
consequences of the readiustment of
her debts, of her budget and her
financial system. When France has
settled her external debt with Great
Britain as well as with the United
States, when the equilibrium of her
budget, 50 bravely voted by the two
- 1
then France will be able to stabilize
her money according to the gold
standard, and she will be on the way
to put an end to the difficulties in
herited from the War
Observation-Disclosures about money
are not the deepest but they may be-
come the most dangerous. They cor
rupt the most solid friendships. They
awaken suspicion in some and envy
in others. The creditor begins to see
III his debtor a dissipator who is
making sport of him. The debtor
comes to see in his creditor a miser
who seeks to despOil him.
Because of the delay in the nego-
tiation of the French debt. A part of
the American press seized this oppor-
tunitSe to state that our peasants and
Workmen did not pay taxes and that
the fiscal duty was poorly executed in
France.
Facts on French Taxes.
'These ideas spread and took root
even in the Congress. I have had TO
fight them steadily ever since my
arrival here, in constant conversa
tions with many Senators and Repre-
sentatives. At the express demand of
your Treasury, | even had data
Il
the Congress, a memorandum on
Frances capacity to pay. 1 proved,
in this memorandum, that a French
man pays twice as much in taxes as
an American, although the wealth of
France is six times less than that of
the United States, and her national
income ten times less.
THE principal fiscal charge of
France came to her from the necessity
of settling the amount of the war rep
aration. More than half of the an
nual resources of the French budget
is taken to pay the interest of the pub
lie debt thus contracted. Doubtless.
Germany should have paid the cost
of these reparations, but she did not
do so until 1924 and she only began
to do 1t after the execution of the
Dawes plan in 1925-that is, seven
years after the armistice of 1918. Sew
en- years. Could FRANCE wait seven
years to reconstruct her ruins, pay
her war pensions and restore her in
dustries?
Recalls L. S. History.
The United States is fitted to un-
derstand the financial difficulties of
France. because they have experienced
similar ones at least twice in it's his
tory; the first time after the War of
independence when we fought at your
side to assure the victory of your
rights and the possibility of YOUR fu.