Evening star., 1926-04-30

caSn payment 10 HuJuSt tne dHnCun 10
round figures is "a 4.025, 900 900. OF this
81. .025, 900, 900. $3.340 900. 600 represents
principal and $685. .000. 900 the accrued
interest to the date Of the agreement.
schedule OF annuities is attached.
To Start With $4,000 900.
'"rhe agreement provides for an
nuities commencing with $3O.O0O.000
in the first year and reaching $l26..
100000 in the seventeenth year. and
thereafter continuing at this figure.
except for the sixty.second year, which
Is slightly less. Under the agreement
the total OF the principal funded will
be paid in full. On this principal In
terest will he paid as follows: After
, the first FIVE years and for the next
ten years ] per cent per annum; Tor
the succeeding 10 years, 2 per cent per
annum: for the succeeding years,
2% per cent per annum; for the sue
ceeding years, per cent per an
mum, and for the remaining ~ years
of the period, ga per cent per an
mum.
THE total payments to be received
are $6,847.674 104.17, and the present
value of these payments on a ~ per
cent basis is $2,008 122,624, or practi-
cally 50 per cent of the debt funded.
as compared with the Italian settle
ment of 26 per cent.
The best offer heretofore received
from Fra nee was made by NJ. CaillauX
in October last, of $4,000, 900 year
for FIVE years, 1000 900 a year for
the next Z years. and $100. 100000 for
the succeeding 56 years. M. Caillaux
included as the essential element of
his proposed settlement revision
clause called by him a safeguard
clause, the effect Of which was to
relieve France IL Germany did not pay
repa rations. A comparison of the
Caillaux offer and the present settle.
ment shows the following:
I'D In the settlement the safe
guard clause has been eliminated.
''t2) Total payments to be received
under the settlement are Sc, ,S47, 200, 900.
as against $500 600, 900 offered by
NJ. Caiilaux. an increase of $627,-
600 900. The present value of the
settlement on Al per cent ba sis is
81 COS, 100000. as against 81 .755 .O00. 900
present value of the Csillaux offer, an
increase of $253 ,0O0. 600.
France Less Strong.
'(3) In the first five years CaiIlaux
offered $200. 900 900; under the settle.
ment we are TO receive $3.50 1000, 900.
The slightly easier terms for the first
five years were made necessary be-
cause the present fiscal condition of
the French government is less strong
than 1t wasat the time OF the negOtia.
lions last September. Upon the present
exchange rates payment of the first
annuity Of $50, 200 900 requires that
France shall find S9S 200 900 francs.
In October last q payment OF $4O.-
600 600 would have required that
France find only S45. zoo, goo francs.
The lower annuity in dollars repre-
sents today higher annuity In francs
than the Caillaux offer.
f4) In the sixth TO the tenth wear
CaillauN offered $500. .0O0 900: the set
Element provides for the payment of
S305 600 900.
't5) In the eleventh TO the fifteenth
year Caillaux offered $4,000. 900: the
settlement requires the payment Of
$500, zoe. 900
"6) Caillauxs maximum annuity
was 100000. 900. reached after the
twelfth year; the maximum annuity in
the settlement is $125 900 900 reached
after the sixteenth year.
I'm view Of the enormous burden
or the domestic debt OF France, the
difficulty of raising by taxation a suffi.
clent revenue TO meet the cha rges of
this debt, tc carry on the ordinary
government operations and to find the
exchange necessary to pay her foreign
debt to the United States and TO Eng
land, the commission believes that
this settlement represents substan-
tally Frances capacity to pay
Danger Held Apparent.
Unless France is enabled promptly
TO fix the amount of it's obligations
abroad so that 1t may know definitely
it's commitments and may provide for
them in it's budget. there might be