Evening star., 1926-06-16
PLAN TO S|DETRACK.
FRENCH DEBT VOTE
Senate Democrats Want In
quiry on Moves by Bankers
in Negotiations.
BY DAVID LAWRENCE.

There are enough votes in the Sen
ete to ratify the French debt settle
ment, but there are many opportuni
ties to sidetrack consideration.
y Opponents of the settlement have
started in to block action by persuad-
ing the Senate to adopt resolution
calling for an investigation of the
converse tionS and negotiations that
may have been going on in recent
weeks between American bankers and
the French government relative 10
new private loans. The implication
which ii is sought to prove is that the
International bankers have been in.
huential in getting the American GOV
ernment to agree to lenient terms so
that loans might be negotiated, which
would be advantageous TO private
bankers.
Up to now the American Govern
ment has used its moral influence to
prevent the f1otation of loans to any
country-which had not agreed to fund
its war debt to the United States. In
the last several weeks the American
bankers have been anticipating their
opportunity to make a new loan to
France and have naturally examined
the possibilities. Whether they have
In any way used their influence to Sc
cure votes for the French debt settle
ment or whether they have previously
been urging the American Debt Fund
ing Commission to make better terms
FOR France than we,,- given the Gail
lauN mission. is something the Demo
Gratis in The Senate would like to find
out The Senate re-oiution calls on
the World War Debt Funding Com
mission for this informa ton.
The answer can he forecast. The
Debt Funding Commission has not
heard of any formal negotiations for
loan or of any agreements that
have been made. II presumably
knows what most bankers in New
York know. that the subject Of
French finances is constant subject
for discussion.
The resignation Of the BRAND cabi-
net in France makes the situation
even more complicated. because even
though the French debt settlement is
agreed to by the American Congress
and the French Parliament. there
still remains the matter of fiscal
policy for the French government it
solf to solve
There have been conferences abroad
between Gov. Strong of the Federal
Reserve Bank and French officials
with respect to international exchange,
and some inquiries have heen made.
il is understood. by the Federal Re
serve Bank of New York of private
bankers as 10 what their attitude
might he In the event that loan
were f1oated. But all this is in the
realm of the hypothetical and there
has been no agreement made with the
French government so far AS informa
tion available here is concerned.
An external loan for France based
upon the fact that her debts WITH
America have been settled and chat
she has worked out a sound policy
for internal revenue IS fully expected
here to follow action by the Senate
on the French settlement. but no one
is ready to hazard a guess whether
this will come Immediately or in the
Autumn. So far as the America n
Government is concerned II Is frankly
interested in France 9 fiscal condition,
and one of the arguments being made
for ratification OF the debt settlement
is that when once this uncertainty
Is cleared up France will be BILE to
establish her credit position in the
financial markets Of the world.
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