Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-06-29
VOTE ON DEBT PAC!
COMING SHORTLY|N
PARIS PARLIAMENT
BRAND Cabinet Tells Men,
bers Settlement Is Needed
to Stabilize Franc.
LOANS FROM AMERICA
AND BRITAIN EXPECTED
U. S. Reserve and English Bank
Heads in France Now-Cham-
Der Votes Confidence.

Bv the Associated Press.
PARIS, June 29.-pariament will
soon he called upon to take the re-
sponsibility either of ratifying or re-
iecting the Washington debt funding
agreement. says the declaration of
policy of the new BRAND cabinet,
which was read before both houses
this afternoon.
The government declares that set
tement Of the interallied debts is
one of the factors upon which the
proposed stahliZation of the franc de-
pends.
The Chamber of Deputies today
voted confidence in the new BRAND
government, giving it majority OF
49,
The text of that part of the decla-
ration referring to the debt agree
ment reads:
The government knows that in
order practically to accomplish stabi-
IiZation OF the frame, international aid
will not he useless. But in no case
will il consent to the slightest infrac-
ton upon the full sovereignty of the
country.
Debt Decision Urgent.
cit does not overlook that settle.
ment of the interalied debts is one
of the helps necessary TO a SOUND
reasonable stabiZation. Consequent
". the urgent duty of the government
is to put Parliament in position to
decide this great question. 1t is al
ready before both houses. and they
will very soon have to take their re-
SDOnSibiiitieS upon it.
Meanwhile the government pro-
poses to pursue the necessary nego-
tiations with the greatest energy, IN
order that, in the shortest possible
time, the whole problem may come
before YOU Ghe Parliamentl, ana that
when the moment arrives you VIII not
have to ratify an agreement with one
of the creditors without knowing the
obligation that will weigh upon the
treasury as result OF the accords
with the other creditors. (The two
creditors referred to are the United
States and Great BritainD
"A great country owes it to itself to
look far ahead when it signs such
solemn engagements, because 1t is
anxious to be punctual in their eXecu-
ton The interest of the creditor is
thus served H.. the scruples OF the
debtor"
Currency Linked With Debts.
qualification Of all our foreign
debts cannot he separated from the
certainty acquired by the government
that it has the indispensable means of
establishing currency capable OF re-
sistinG efforts to pay those DEBTS
without foundering."
Another high spot in the declara-
ton is the assertion that all politics
must be laid aside for the present. and
all interests centered upon the solu-
,ion of the financial problem.
Conditions for placing the public
finance upon sound basis are favor
able. the new cabinet believes, point
ing out that the war in Morocco has
ended, the military situation in Syria
is encouraging and the budget is bal
anced Nevertheless, severe economy
is necessary and will be practiced in
all the departments Of the govern
ment
An essential feature of the pro-
gram" it .CEtinueS, lis the stabilize
lion of our money, but in accomplish
ing this end the government declares
ii will not propose in any case or i'll
any manner the slightest default of
any of the debts of state. which it
holds to be sacred
Revision of Taxes.
The declaration outlires policy
of revision Of taxes, cuts i the gen
eral income tax and the tax on stocks
anl bonds, to be compensated for by
i'll ,reaScS III O~her taxes and more
rigorous collections.
All idea of restoring the gold value
of the paper franc is rejected. The
immense loss OF riches through the
war, the dcclarat ton says, can find
counterpois2 only in an accepted re-
Gpction in tie purchasing value of he
paper franc.
The entire question" it continues,
lis 20 halt the continued decline of
the franc, to give it q reasonable CON
vertible value and to reestab'ish it
on the basis Of / new parity that will
be certain and secure.
We must not withhold from The
country the fact that it's present pros
TeritY is partly q dangerous mirage.
in order to become a durable reality, it
must be founded on increased p"oduc
tjon and reduced consumption"
Action Now Necessary
The declaration concludes: The
government will not betray the hope
of the nation. neither will Parliament.
hour has passed for clashes of doc
trine; the time is no longer for talk
1t is necessary to act, ar, to act
quickly. The government vii ask the
Parliament to give it the means and
'the power to do So
Finance Minister CaillauX's plan to
stabilize the franc depends upon
credits from the United States Fed.
eral Reserve Bank and the Bank of
England. These, in turn. according
TO his conception, depend upon ratifi-
cation of the Washington debt fund
: ing agreement and the closing of an
arrangement for settlement of the
debt to Great Britain soon. 1t is
understood the finance minister de-
sires to be assured in advance that,
if the debt agreements are ratified.
the credits could be arranged. The
credits. probably not to exceed $780,
100000 would be asked for by the
Bank of France, and would have be-
hind them the full resources of that
institution, including its gold reserve.
Although it would not be earmarked
or even mentioned as a specific
security, the gold. being part of the
banks resources would naturally be
engaged.
Benjamin Strong, governor of the
Federal Reserve Bank at New York,
Hnd Montague Norman, governor of
The Bank of England are taking
holiday together at Antilles, France.