Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-29
debt SETTLEMENT
. DELAY IS SOUGHT
France Wishes Postponement
of s4OO, OO0, 900 Payment
for War Materials.
BY JOHN F. SINCLAIR.

BY JOHN F. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, May 29.-France is try
ing to figure some way to postpone the
payment of the s40O,oo0,000 she owes
to the United States, the principal OF
which is due August l.
The debt arose from the sale by the
United States of its surplus war stock
in France at the close of the war. Inc
United States asked S542 100000 for the
surplus stock. The French govern
ment offered $135, 100000 An agree
ment was reached at S40O, 100000.
August l. 1919, the French govern
ment issued 5 per cent bonds payable
at the end of 10 years. Due date Is
almost here.
What has France done with the ma
terial she bought? Up to August 81
1924, according to her finance munster,
she had received from the sale OF these
war materials to the French people
$27O.217,000. For the last five years,
however, no figures are available to
show how much has been added TO TINS
amount.
Should France agree finally to APP
nroye the Mellon Berenger debt-tund-
ing agreement dated April 80, 1926, the
interest of $20000,000 year is m
Guided in the annual payments 10 De
made bv France to the United States
and in the event the debt agreement
is ratified by France this commercial
debt is added to the total of French
war obligations.
B,lt France has not yet ratified, and
she does not wish to pay the S4Oo,oOo'-
600. What she wants is to postpone
the maturity of the debt DUE, August l
to May l, 1880. Resolutions have peen
introduced into both houses OF tne
United States Congress providing Tor
Such a nostponement. with the dis
tinct understanding that the FreHcn
will make ratification of the DEBT
settlement with the United States
government measure.
The next move is up to Congress.
There has been considerable discus
sion in recent weeks, especially IN Great
Britain, of the terms Stanley BALDWIN
as chancellor of the exchequer, MADE
with the American Government IN
funding the debt Great Britain owed 10
the United States.
The first settlement made by the
World Oar Debt Funding Commission
was with Great Britain on June ~,
1923.
The terms were used as a basis in
working out the settlement of SIX other
countries. so these seven countries might
be put into one class, with reduction
of the debt-based on the present value
of 425 per cent interest-of 10 to 20
per cent. These nations are Great
Britain. Finland. Hungary, Poland,
Esthonia. Latvia and Lithuania.
Two other countries had their debts
reduced, based on the present value OF
the funded debt, about Is per cent.
These were Czechoslovakia and Ru-
mania.
Then came the others: Belgium, re-
duced on the same basis, was 53.5 per
cent: Jugoslavia was 69.7 per cent;
Italy, 75.4 per cent; France, 52.8 per
cent.
There is no question that France
worked out a debt settlement much
more favorable than Great Britain. but
so far the French Parliament has re-
fused to sign the agreement on the
dotted line.
Should the American Congress refuse
to postpone the payment of the S40O,-
| 600 900 due August l. France is amply
prepared with funds to pay 1t.
New York has no puzzle more battling
than its traffic problem, and it is getting
worse.
With the city and its suburbs grow
ing rapidly, a constructive program
had to be undertaken to meet the
problem. Seven years ago a regional
planning committee, sponsored and
| financed by the Russell Sage Founda-
ton at a cost of 81 900 900, was formed
to suggest an orderly program of de-
velopment, providing for population
of 10000 900 in 1858.
Before 1900 business leaders, pre-
sided over by F. A. Delano, chairman,
! the results of the committees labors
and the studies Of more than $50 ok
perts were presented this week. The
report deals with an area. with New
| York City as the center, of 5,528 square
miles, four and half times as large
as Rhode Island, and as large as Con-
necticut.
In essence the plan calls for spread
| ing out the population over a large
area the decentralization of industries,
stores and recreation facilities. and a
| method by which collective effort and
enterprise can be undertaken in that
vast area without any encroachment
upon political and governmental
| divisions.
| No such exhaustive report has ever
| before been made. 1t deals with a
! territory covering 1896 miles in New
| York State, 1920 in New Jersey, and
Alb in Connecticut. Twenty-Five coun-
! ties are affected. The report estimates
| that@by 1885 there will be 900 COM
muters to New York City.
| Copyright, 1929. by North American News
| paper Alliance.)