Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-04
DEBT PACT UPHELD
BY FRENCH REPORT
Foreign Loans to Stabilize
Franc Included, But
y Fight Is Forecast.

D. the Associated Press.
PARIS. July 3 Decentralization OF
the Washington debt agreement and
the warning that sound money cannon
be obtained in France without some
economic upheaval and consequen!
suffering during the transitory period
are features of the report drawn up
by the governments committee OF
financial experts, according to the best
authorities.
The experts are putting the finishing
touches to their suggestions tonlght
and the ministry of finances mas
promised that a summary will be made
public tomorrow.
If the new BRAND government &C
cepts the report of the committee,
which was appointed by Former
Minister Peret in order to fnd way
of pulling France out OF the siough
of her financial disturbances. 1t prop
ably will face considerable oppositloh
in the Chamber Of Deputies.
The suggestion that the franc can
he stabilized with the aid Of foreign
loans after ratification Of the debt &C
cords already has met with heavy
fire in the Hobbies Of the Chamber, al
though il has not been officially rec
ocnized as part Of the report.
Must STABILIZE Franc.
The principal findings of the re-
mort if is understood, are that the
franc must be stabilized at the earnest
possible moment, that all war depts
must be settled and the settlements
ratified promptly; that the strictest
economy must be observed II puDlc
administration, and that the country
must be warned that sound money
cannot be obtained without some eco
monte upheaval and suffering during
the transitory period.
Much of the experts report is de'
voted to technical suggestions as 10
how the treasury may get along Win
out further advances from the Bank
of France. It also is concerned with
how short.term bonds may possibly
be voluntarily refunded" SO as to do
aWav with the constant menace OF
the quarterly maturing OF many Dill
lions of these securities.
Opposition to Borrowing.
The recommendation. which is like
" TO provoke the greatest criticism,
IS TO resort to more foreign loans to
stabilize the franc. Financial experts
believe that foreign loans are in
evitable. but Parliament has been
stoutly opposed thus far to fncreas-
ing foreign Indebtedness. The present
Chamber was elected on platform
whose principal feature was criticism
Of the bloc national for too much
borrowing.
This anticipated feature of the re-
port has been discussed at length In
the Hobbies Of the Chamber. and 1t Is
predicted that there will be a stout
fight against the cabinet when
Finance Minister Caillaux presents
his financial plan on Tuesday.
Opposition to ratification of the
Washington debt settlement has
shown some signs of weakening dur
ing the past few days. The Socialists
and extreme radicals, however, de-
clared that they are uncOnverted.
while a considerable part of the con-
sentative and moderate groups regard
the accord with frank aversion.
In many circles which are familiar
with Premier Brands method and
skill in handling the Chamber there
is feeling that when the vote comes.
after final appeal from the premier,
q majority will be found to favor
ratification.