Evening star., 1926-04-24
Scars Left by Row Over Pact
With Italy Are Likely to
Prevent Agreement.
COOLIDGE IN POSITION
TO EFFECT CONCORD
American Commission Proceeding
Cautiously in Face of Many
Obstacles Looming.
BY DAVID LAWRENCE.

There is only a bare chance that
the French and the American Debt
Funding Commissions will come to
an agreement. 1t isn't the fault of
France altogether, but the Legislative
situation in Congress has developed
unlocked for obstacles to Franco
American understanding on terms.
Secretary Mellon wants to settle.
He is favorably inclined to the pro
posals being made by Henri Berenger.
the French Ambassador. but Senator
Smoot of Utah, Republican leader in
charge of debt funding proposals, is
afraid he will encounter serious op-
position If the terms, presented by the
French are what they are reported TO
be, namely, a slight increase In the
payments during the first 10 of the 62
years and heavy increases toward the
end Of that period.
Italian Row Leaves Scars.
The scars Of the italian debt con
troversy are still unhealed. Although
the administration had a substantial
majority in both houses in approving
the Italian settlement, this was due
largely to the fact that the executive
branch Of the Government had al
ready committed itself and that pri-
vate loans had been made and the
whole thing was an accomplished
fact AS for the French settlement,
tho minority grouNs in the Senate
particularly show signs Of developing
even more opposition toward French
than they did toward an Italian
agreement.
So Mr.. Smoot is cautious and will
not agree to anything which he thinks
he cannot get through the Senate.
Secretary Hoover is reported to be
sympathetic with Mr.. Smoot's idea
that the French can pay more than
they propose, and that the time to
make such an agreement is now in
stead Of later, when Congress may
renewal Of negotiations.
German Element May Balk.
There are, of course. elements in
the electorate who feel the French
have been unduly severe toward the
Germans, especially on reparations,
and the German sympathizers, 1t Is
feared, may influence the representa-
tives from German-populated consttt-
uencies to oppose the granting of
lenient terms to the French.
The Democrats alienated to a large
extent the German American vote in
the last two presidential campaigns.
and some Of the Democrats here are
of the belief, that on a sharp lineup as
between an easy settlement for France
and q postponement Of the negotia-
uons till France can pay more they
would rather accept the latter course.
President Coolidge really holds the
IL, I. d. 4eIt hn> cd la
with Mr.. Mellon in the belief that un-
likely to be none for several years, the
chances are he can bring the whole
American Debt Funding Commission
to an agreement. II he takes no active
part the negotiations will come to
naught, as there are divisions of opin-
ion almost too sharp to be reconciled.
French Want Settlement.
The French are anxious to make
some sort Of a settlement at once, SO
as to improve their credit situation.
Big business and financial interests in
America think the American Govern
ment should come to terms quickly
with the French because of the slim
ulus it would give international trade.
They think golden opportunity was
lOSt t1SL SSStE III IOl reaching dIl dSISe-
ment with the Caillaux mission, espe-
cially on the offer which Mr.. Mellon
was reported at the time to have IA
vored Informally.
The politics of the situation would
seem to imply doubt and delay in
handling the French debt. In the first
place, any settlement proposed now
would mean protracted debate and pos
sibly no action at this session of Con-
gress, yet this might in the end prove
an advantage to those who favor the
terms now being offered by France,
because. If the question is left to sim
mer during the Summer months, the
tide may run toward ratification later
on. There are, on the other hand,
dangers in delay, especially since the
to the Italian debt was de-
veloped as a result of the length of
time allowed to elapse in its considera.
ton.