Evening star., 1926-06-13
BRAND WILL STAND
OR FALL WITH DEBT
Will Ask Chamber for a Vote
OF Confidence on Accord
Before Adjournment.
BY Gable to The Star and New York World

BY Gable to The Star and New York World.
PARIS, June 12.-Premier BRAND
today decided to ask for a vote Of
confidence in the Chamber of Deputies
on the American dept settlement
His government will stand or fall on
the result.
The premier will not bring the mat.
ter up Immediately on account of the
prevailing political ferment, but be-
fore Parliament adjourns in July he
will ask it to approve the Mellon
Berenger accord. He will give Par
lament the alternative of ratifying
or paying 100000, 900 in three years
time. when otherwise it would be
necessary to liquidate the debt
France incurred at the end Of the
war for American Army stocks.
NJ. Brands argument to Parliament
for ratification will carry the impli-
cation that if ratification is withheld
France will not get the credit from
American bankers regarded necessary
TO save the franc. In other words.
Parliament is given an alternative
otherwise expressed, of taking the re-
sponsibility II the franc should crash
Parliament is expected to yield the
ratification though 1t go against the
grain and perhaps against the real
wish of the majority.
Socialists Efforts Blocked.
The Socialist demand for a transfer
clause has made no headway be-
cause NJ. Berenger believes it i'm.
possible to get Washington to con-
sid o1f In
signed NJ. Berenger believes he OBJ.
tanned the maximum the Debt Fund
ing Commission would give and does
not want to face the difficulty Of re-
opening the question.
Already the credit understanding
between American and French bank
ers is beginning to be discussed in
the corridors OF the chamber, as in
financial circles. 1t is not considered
a question of a loan or direct credit
to French territory. The arrange
ment to be made, contingent upon a
whole series of financial measures
tending to stabilize the franc, is that
American bankers will agree to pro-
vide credit for France in paying it's
bills abroad, making it unnecessary
10 buy foreign currencies, and thus
prevent the franc from being forced
down in ordinary commercial trans
actions or in payment of war debts.
These credits are to be guaranteed by
the Bank of France.
The gold reserve Of the Bank of
France would not be touched, but in
the last analysis all the credit of that
institution is involved in the trans
action, making it difficult to con-
clude the arrangement.
No Definite Sum Named.
The credit will not be a definite sum
OF half a billion dollars. as earlier
announced, but for whatever may be
necessary in commercial transactions
or for payment Of the war debts.
In either case the French creditors,
whether business men or the state,
will deposit with the Bank of France
the equivalent in francs of money
due abroad. Then American bankers,
on request of the Bank OF France,
will pay the foreign debtors, whether
cotton growers or the United States
Treasury.
The question OF exchange then will
be firmly in the hands Of the Bank
of France and OF American bankers,
who, it Is anticipated, may gradually
bring the franc down to about 30 to
the dollar and hold it there. Specu
ened off, and with the franc remain
ing stabilized over a period Of per-
haps several years 1t may eventually
be given gold value at that basis.
This whole project is dependent
upon the French plan by which the
budget is assured continuous equilib.
rum, and an amortization fund
already established to pay off short
term treasury notes as they fall due
will be supplied with sources Of in
come sufficient to make certain the
ability to pay off notes without risk
ing fresh imitation.
Report Due Soon.
Special inheritance and sales taxes
to swell voluntary contributions are ex-
pected to be proposed by committee
of experts, whose report on measures
necessary to save the franc is an
nounced by M BRAND as due within
a fortnight. The possibility Of sta
bilization being once established.
American and French bankers will
decide whether they are ready to
carry the load. This has given un-
usual political power to the French
bankers, especially to the Bank of
France, which must give the consent
or the credit scheme falls to The
ground.
From this situation arises the po-
litical pressure upon M. BRAND to en-.
large the cabinet to include conserva-
tiyes agreeable to financial circles.
Premier BRAND is resisting this. He
says it is no time to trif1e with the
cabinet, which pleases him as it is.
The pressure, however, is strong and it
is possible he will be obliged by the
financial interests to form govern
ment with fewer radicals in it to
please the financial interests before
they agree to the American credit
plan.
Copyright. 1926.)