Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-04

cepted as fate is devising, but what
remains of the franc must be sta
biized at new par. Without such
sterilization budgetary equilibrium Is
illusory.
But how to achieve sterilization in
the government will base action to this
end on the plan of the commission of
experts mot yet published) with which
the government is in substantial
agreement, which plan presents ap..
propriate formulas for liquidation OF
the short term engagements and re-
establishment of the treasury in a safe
position. In this connection the gov
eminent certain changes having been
| made in the banks management may
now count on the hearty collaboration
| Of the Bank OF France. though it's in
dependence will continue to be scrupu-
lousy respected, and it's credit must
remain distinct from that Of the state.
So far, SO good; but not enough. So
here Is something more: decidedly so.
The government recognizes that Ito
stabilize the france international help
will not be unessential. In no case
| will it permit even the slightest in
| fringement of the country's SOW
ereignty, but 1t recognizes that the
settlement of the debts to Britain and
the United States Is one of the nee
essary supports of solid and wise
sterilization.
The Chamber will soon be asked to
make it's decision concerning the
agreement with the United States. but
not before a. definite understanding
has been reached respecting Frances
debt to Britain. The full liabilities
Of the treasury must be known be-
fore ratification of any agreement.
A clear outlook is essential to a coun-
try when it subscribes such solemn
engagements. A scrupulous debtor
government will wish to be certain
that it has at it's disposal the indis-
monetary unit against depreciation.
What, really, is intended by the
last crxptic paragraph? Is it limited
dn line with rumor much bruited
abroad, some think fioated by Gail
laux HIMSELF that pledges will be
asked from the United States and
Britain preferably from the New
York Federal Reserve Bank and the
Bank of EnglanD of credits for pro-
lection of the revaloriZed franc against
speculation on the New York and
London exchanges, just as the New
York Federal Reserve Bank pledged
credits for protection Of the sovereign
when Britain returned to the gold
1 u,
path otherwise effectively choked) to
ratification by the French Parliament
| of the Berenger agreement and SIM
liar Franco British agreement?
Discussion of the declaration in the
Chamber assumed that negotiations
looking to such pledges were in
! process or contemplated, and the gov
eminent was given to understand that
contamination of q banking conven-
ton assuring such credits must have
the prior approval of the Chamber.
It is conceivable that Parliament
would ratify the Berenger agreement
and a similar Franco-British agree
ment if such credits were forthcom-
| ing and not too great a price. What
security would the American and
British banks require? We are prom
| Used for Tuesday a complete disclosure
of his plans by M. Caillaux.
There is probably nothing whatever
in the rumor that Washington will be
approached with proposals contem.
| plating modification Of or additions
| to the Berenger agreement, such as a
transfer" clause. Safety" clause or