Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-06
DEBT RATIFICATION
IMMEDIATELY WINS
SUPPORT IN FRANCE
Poincare Expected to Press
Issue to Vote for Both U. S.
and British Pacts.

BY the Associated Press.
PARIS. August 6.-The impression
in political circles is growing stronger
that the government will ask Parlia-
ment to ratify the Washington and
London debt pacts Immediately after
the coming national assembly at Ner-
sailles. While official circles are most
reserved on the subject, such an in
tention is not denied.
1t is understood that the government
will not oppose reservations being
tackled to the ratification, notably on
the question of payments. 1t is ex-
pected that the final decision on the
matter will be taken at Mondays cabi-
net meeting.
Would Complete Program.
1t is known that the finance COM
mittee of the Chamber of Deputies is
ready to expedite matters. Premier
Poincare, having obtained sanction for
his new taxes, his sinking fund plan
and special arrangement with the
Bank of France to issue new notes to
purchase foreign curfencies for the
stabilization of the franc, If the ratlii-
cation project works out, will find him.
self at the end of next week with his
entire preliminary financial plans out
of the way and the debt question as
well. This would leave the way clear
for him to plan further measures def
nitely to restore the country's finances
during the parliamentary recess.
M. Berenger, Amba ssador to the
United States, who negotiated the
Washington debt pact, said today he
expected to return to the United
States only after the debt agreement
had been ratified by Parliament.
81 expect ratification before the
close of the present session., ne
added.
Poincare for Ratification.
The Ambassador refused to say
whether he thought reservation would
be adopted by Parliament, but 1t Is
understood he viii defend the agree
ment in both houses.
Premier Poincare is known TO De
anxious for ratification, and 1t IS SAID
he will bring the question before
parliament after the meeting or the
national assembly and will put it
through as a matter of urgency.
1t is generally conceded that reser-
vations concerning the sale of French
bonds and probably safety clause
will be asked.
Although the stabilization meas
ure provides that the Bank OF
France may issue notes for the pur-
chase of gold bullion and stable for
eign currencies with French francs
at the current rate of exchange,
Premier Poincare told the deputies
that this action by the bank would
not involve initiation. He added that
the government would have recourse
to foreign credits only when the
value of the franc had increased.
Previously purchases of foreign cur
rencies had been banned. except
when they We're made on the basis
of the pre-wslr rate OF exchange.
Take Up Floating Debt.
The establishment of the sinking
fund is for the purpose of taking up
the floating debt of France, which
consists largely of outstanding ma.
tional defense and treasury bonds.
The Chamber adopted the recommen-
dation by a vote of $50 to 172, a So.
cialist motion, that the government re-
tain control of the tobacco monopoly
instead of turning it over to private
concern. It is from the tobacco
monopoly that the government ex-
poets to realize a goodly sum toward
wiping out the floating debt.
The measure permitting the Bank
of France to issue new notes for the
purchase of foreign currencies was
one Of the recommendations made to
former Finance Minister Caillaux by
the committee of financial experts.
The mobilization of foreign currencies
will place the bank in position to
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