Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-21

ple have not vet been brought to the
realization of the actual situation, De-
cause while the cost OF living mas
risen with imitation, it has not risen
in anything like the degree that
would balance the shrinkage or the
franc on the foreign exchange.
What every cabinet in France and
every individual politician is fearful
of is the political effect Of the inev-
table consequences Of imitation. They
believe, Justly enough, that when the
pinch comes the people will ascribe 1t,
not to the initiation, but to the sta
biliZation, and that they Will be po-
liticalIy ruined for having adopted
the course which all sensible persons
know must in the end be accepted.
Eventually sterilization will restore
the French situation, but along the
way many politicians may be wrecked
by the popular emotion.
The new uproar over the American
debt is, too, a direct consequence of
the situation with respect of stabiii-
zation. All the holders of French
governmental securities are faced
with the prospect of having the value
of these securities reduced by between
80 and 80 per cent. But while this
process is operating they see them
selves called upon to pay back debts
to war allies which have been re-
duced far less. Thus the French in
weston sees his own securities we'll
nigh wiped out, the returns which he
expected from German reparationS
cut down by the Dawes report and
his debts to the allies maintained at
what he regards as astronomical lev
els. Hence the present revolt.
*x X
The financial expert perceives that
reorganization of French finances can
only be accomplished by foreign aid.
which in practice means American
and British loans. He sees that these
loans can only be obtained by the
acceptance of the obligation to pay
the debts owed to Britain and the
United States. Therefore, he advo-
Gated ratification of the Mellon-B eren-
ger and Caillaux-Churchill conven-
tions. He shares the belief of his
fellow countrymen that the accordS
are unfair to France and perhaps
even impossible of realization, but he
is ready to sign now to get the loan
and settle later as the situation may
demand.
But the mass of the French people
are up in arms against a course which
to their mind involves the permanent
destruction of nine-tenths of the value
of their own securities and the mort
gaging of France abroad for a period
of two generations. Not being experts,
the mass of the people do not under
stand the situation, do not perceive
the necessities and. in effect, will not
permit their politicians to put through
the required legislation.
Moreover, there is very wide
spread suspicion in France that Brit
ish and American finance, backed by
the respective governments, is de-
liberately seeking to dominate and
control France by means of debts and
loans, and public opinion is becoming
aroused and even hysterical. All of
which is disclosed in such incidents as
the resolution Of the war-mutilated to
parade on Bastille day in protest
against the American debt settlement.
That the French government can
now push through the Mellon-Beren-
ger treaty is totally unlikely, and
there are many signs that it appre-
ciates the fact. France must come
much nearer to total collapse before
public opinion will consent. But even
when it does consent under duress 1t
remains to be seen whether a later
ScIlcTdlIOIl VIII garry Out TIE COutNdCls
The conviction of the whole French
nation is that we have taken advan-
tage of French misfortune, the result
of French sacrifices in the war, to
impose a Shylock settlement upon
France, and that this settlement Is
against right, justice and even de-
cency. And this conviction is likely to
spread rather than disappear, with
the inevitable consequence that we
shall be increasingly unpopular In
France for many years.
It would be a mistake. too, to re-
gard the French situation as unique.
For better or for worse, the debt ques-
ton has destroyed our prestige, popu-
larity and influence in Europe as
whole, save only as this general feel
ing is temporarily restrained by the
grim fact that we have the money
and the power. Thus while peoples
in increasing measure denounce us.
governments are forced by their ne
cessities to preserve friendly relations
and even to endeavor to suppress too
violent popular expressions of resent
ment. In this latter operation they
are patiently working against popular
feeling, us the BRAND government .
found when it sought to prevent they
Bastille day protest of the French vet
Grams.
lcODyrixht 1891
IS