The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1926-05-05
MORGAN'S BANK :
NOW READY FOR
LOAN TO FRANCE
Pact Accepted BY the
French Cabinet
Especial TO The Daily Worker,

WASHINGTON, .. c., April 80
ut was the best we could get"
With this miserable phrase eonstl-
tuting both defense and a plea, the
American Debt Commission will lay
the French debt agreement before
Congress in few days and ask its
speedy approval.
Ratification Is considered assured,
though how speedily Is a matter Of
conjecture today. The opposition to
II, in the Senate, will be strong, but
having succeeded In getting the
shameful italian settlement ratified,
administration leaders had little
doubt today Of similar success with
the French pact.
Congress kicked at swallowing the
italian agreement, in which the basis
lof settlement was about 26 cents ON
the dollar, but in the end approved.
On the same basis Of figuring, the
French settlement is worth so cents
on the dollar; hence the argument
will be advanced that it is twice as
good settlement.
Fake Arguments.
Another fraudulent argument to be
used by the Mellon-C Coolidge brigands
is that the French pact virtually
wipes the foreign debt slate clean
after five years OF incessant wrang-
ling and verbal sniping across the At
lantic which has been "a disturbing
factor in Americas relations with q
dozen debtor countries"
Out of the total Of S10,102, 600, 900
which the treasury advanced to for
eign nations during the war, only
1926, 100000 now remains on the
books unfunded. OF this amount, Aus
tria owes $24,o00,oO0 on which con-
gress has granted a 20-year mora
torium; Armenia owes $12,oo0,O00
which has been waved farewell as
Armenia no longer exists; and Yugo-
Slavia owes $51,00O,0o0. Negotia-
tions are now in progress for settling
this debt.
Easy Payments"
The payment on the French settle
ment have been so arranged that
France will not feel the real pinch Of
tbs settlement for the next ten years.
For the first IL years Of the 62-year
hperiod, the payments win range from
sSO,OOO,000 to $10O.O0O,OOO annually.
and thereafter they graduate steadily
to a maximum Of s125, 00O, 900 for the
seventeenth to sixty-frst year, in
elusive.
The Inevitable Loan.
That France will go Immediately TO
Wall Street for a huge consolidation
loan, probably $200,O0O,000, is the
general expectation in governmental
circles here. In so doing, she will
be but following in the footsteps of
most Of the other European debtors,
who have funded their debt in Wash
ington and then hurried to Broad and
Wall Streets to set more loans at
higher interest
French Cabinet RstInes.
PARIS, April S0-The French
cabinet met today and definitely ap-
proved the debt settlement reached in
Washington. Finance Minister Peret,
who before the cabinet had indicated
that the settlement was not final, an
nounced following the cabinet meet
ing that the accord had been def
nitely approved.
AssaII Settlement.
Pending the issuance Of the gov
eminent communique the more re-
sponsible French newspapers were
cautious in their comment, but some
OF the afternoon newspapers were In
clined to be critical.
Government officials admitted that
ratification Of the agreement BY the
chamber Of deputies would undoubt-
eddy mean fight, but they expressed
the hope that they would be able TO
force the ratifying vote successfully.
Storm Clouds Ahead.
M. BRAND and M. Peret, r. was
learned this afternoon, had to use
all Of their powers OF persuation to
secure cabinet approval for the set
Element.
Several members OF the cabinet pre-
dicted the agreement would never be
ratified by the chamber or senate and
even forecasted fall of the govern
ment.
Despite these gloomy predictions
M. BRAND and M. Peret insisted upon
approval OF the agreement and won
their point.
MaehInlsts Go on Strike.