Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-12
LEADERS DELUDE
FRENCH ON DEBTS
People Have Been Led 10
Think Cancellations Were
Promised BY Allies.
BY DAVID LAWRENCE.

II 1t WA intended BY The demon
stration OF French war veterans to
Impress the United States Govern
ment with the necessity Of revising
the terms OF the Mellon Berenger
agreement on the war debt, then i
may be said now that the attempt
was q. failure.
Parades In which 10000 MANNED
veterans participate are not spon.
taneous AFFAIRS, but are the result OF
direct organization. For that reason
officials here are inclined to look for
the motives Of the organizers rather
than to take into account the surface
aspects OF the movement.
The real belief here Is that the
parade had double meaning. First.
ii was timed on the eve of the de-
parture OF Finance Minister CAillaux
for London, where the French gov
eminent hopes TO obtain much better
terms than were accorded France by
the United States. Second, the
French know there ID opposition In
the United States Senate to the
Mellon. Berenger agreement on the
ground that II is too lenient, and
they hope that the parade Of the vet
Grams viii assist the Senate in making
up its mind that q better settlement
is impossible.
illustrated OfIicials' Deception.
About the only comment that was
forthcoming here today was that tbs
French parade illustrated more
forcdbiy than anything eise the effect
OF the deception practiced by the
French politicians in withholding the
truth about government finances
from tho French people ever since
the war.
Instead Of telling the French people
that the opportunity Of collecting large
Preparations from Germany was
economically impossible. ministry after
rninistry held high the hope Of sub.
stantial payment by Germany. MIL
lions OF dollars were spent by France
In the Ruhr as well as In Morocco
and in Syria, which might have been
diverted to the peace-time needD OF
an unbalanced budget. Again, by
various statements Of officials and by
q persistent campaign In the press,
the French people were led to believe
that cancellation of war debts was
coming.
that the United States from the start
has regarded the fuihllment OF
Frances financial obligations ~ essen
tial to, her own credit position. The
drop In the franc IL regarded 40 ire
futable evidence OF what the French
politicians have done since the war In
the management Of government
finances. So far az the United States
Il concerned the Government here
would probably be willing not to press
the question Of q settlement at this
time, believing that when Frances
internal situation has improved the
Paris administration would be able to
make an even better settlement Of ex-
ternal debts than + possible In 1915.
Most Spent Since Arnistice.
II IL precisely because the political
situation In the United States permits
d ienient settlement today that the
administration has been willing TO
grant what amounts TO 80 per cent
cancellation of the French war debt.
It IL not pointed out nowadays In
France that a large part of the money
which the United States II asking
France TO repay was spent after the
arnnistice and Is in q. sense q CONNER.
cial debt. Great Britain lent similar
sums, and actually received as high as
S per cent interest since the war, but
these facts probably are unknown to
the great majority Of the French PEG
ple because Of the direct control exer.
cised by the French politician over
public opinion through the press. \,
Another large sAm about Sac, 600.
0OO--was spent bt the United States
after the arlnistice TO maintain an
American army on the left bank q
the Rhine. This was done ct the dl-
rect request Of the French ministry,
who thought the presence Of the
American troops would have q salu-
tarv erect on the Germans and COM
pel payment Of PREPARATIONS. Although
IL was specifically agreed by the allies
that the United States was TO be re-
ilnbursed out OF the first money re-
ceiyed from Germany, the fact was
that the allies, including the French,
spent what they received and did not
nay the United States.
Indeed, America was compelled to
send q special mission to Paris to
secure q settlement OF this question.
And the net result was that the pay
mont Of S24O, 0OO.0 was deferred.
along with the rest Of the French
debt, for 50 years.
Facts Unknown to People.
These acts Of tolerance on the part
Of the United States Government are
probably not known to the French
people or to the veterans VINO particle
pated In the parade. There - no
protest BY the veterans against the
French leaders who engineered all
these maneuv1rs, nor are there pro-
tests against Great Britain for coli
lectinE high rates OF interest on
money due her from France.
So the French demonstration u
regarded here as pathetic evidence Of
how the people Of France have been
misled by their politicians. who have
feared from time to time I'd let the
truth be known lest II mean the
overthrow Of the ministry or the ok
,puIsion from power of those whose
personal ambitions In politics 50 often
transcend sentiment as well as the
plight Of fellow countryfen. For
France is to be taxed to pay her war
debts ana her people are not In the
mood 10 make further sacrifices.
The demonstration by the French
veterans Is expected to be taken up
BY the French people and may make
even more difficult than before the
collection Of internal revenues, 30 e.
sential to France before she can hope
To float v1Yiva&A loans IN America 70