Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-04
The French Debt.

] In the message transmitting the 1880
| Budget to the Congress, the French
debt was discussed. A portion of the
Indebtedness of France, representing
surplus war materials purchased on
credit, was due to mature during the
! fiscal year 1880, unless the agreement of
April 90, 1928, providing for the fund
ing Of the entire indebtedness of France
to the United States, should be ratified
by both France and the United States
in which case this Indebtedness would
be merged in the general Indebtedness
of that Government to the United
States. In the spring of this year it
| seemed clear to the Treasury that the
Government of France would ratify the
French debt agreement prior to August
l, 1929, the maturity date of $400, 000-
900 face amount Of these obligations
mentioned in last years Budget mes
sage. The Congress of the United
States was considering the question of
recessing for two or three months and
the Treasury was faced with the sit
uation that the debt agreement would
be ratified by France, that certain OBJ
legations of that Government would
mature on August /, that the Congress
would not be in session, and that there
was no authority on the part of the
Executive branch Of the Government
other than to submit the obligations on
their maturity date for payment.
Submitted to Congress.
The matter was submitted to the
Congress with recommendation that,
in the event the funding agreement
was ratified by France, in accordance
with its terms, prior to August l, 1929,
the Secretary of the Treasury, with the
approval of the President, be authorized
20 enter into an agreement with France
providing for the postponement of the
date of the maturity of the obligations
in the principal amount of 100000
600 from August l, 1929, to such time
as the Congress should approve or dis
approve the funding agreement, but in
no event beyond May !, 1880, provided,
however, that France should agree to
pay interest on such obligations, the
interest so paid to be credited against
the annuitieS first due under the fund
ing agreement. After consideration,
House Joint Resolution 80, embodying
these provisions, was passed by both
Houses of Congress, but failed to re-
ceive the formal approval of the Speak
er of the House and the President of
the Senate before adjournment, conse-
quently failing to be enacted into law
by August l, 1929.
The French Government ratified the
funding agreement under date of July
27, 1929. Relying upon the expression
of the sentiment of the Congress on
the matter, as contained in the Joint
resolution, the Secretary of the Treas
ury, with the approval of the President,
In an exchange of correspondence
agreed with France to extend the ma
| turity date of the obligation in question
upon the terms and conditions set out
In the resolution. The House joint
resolution was subsequently enacted
into law, being approved by the Presi-
dent on October II, 1929. The ques-
ton, therefore, of the maturity of these
Obligations is temporarily disposed Of.
Inc French debt agreement will be sub
mltted to the Congress in the early part
OF december. If it receives the APP
! proVaI OF the Congress, all of the obli-
| gatlonS OF France representing the pur-
chase OF surplus war material on credit
VIII be merged, under that agreement,
IN the general debt of France to the
United states. The payments there
alter MADE will conform to the annui-
Ties speclhed in tFRt agreement.
Inc PRESIDENT a his budget message
Ilcludes summary of receipts and eX-
penoItureS which are shown in detail in
Ctie ouogeC. 1hls summary is exclusive
! VI postal revenues and postal expendi-
lures paid from postal revenue, II
SHOWS mat the actual receipts in the
HScal year 1929 were S4,O33, $50, 225 O5
| ana tne actual expenditures were So =
848, 463, 1888, leaving the excess of re-
CSlpIS over expenditures $187, 787, OBS AZ
Inc ESTIMATED receipts for the fiscal
year 1881 are $4249, 263, 434 and the
eStlfnated expenditures S4,O23, 68I. 900.
leaving the excess of receipts over esti-
| mates Tor the current fiscal wear S225 -
5ol ,o34. The estimated receipts during
h, the fiscal year 1881 are placed at 50
! 225,727,666 and the estimated expendi-
lures $4,l02 ,938,700, leaving the excess
OF receipts over expenditures $122,-
| 788, 966. ~-'
These figures include net expendi-
! lures from the revolving loan fund of
the Federal Farm Board to the amount
OF $200000,000 in 1881 as compared
! With an estimated net expenditure of
| S75O00,OO0 for the same purpose in the
current fiscal year 1890 Eliminating
these fgures, for the purpose of COM
parison. from the estimated expendi-
lures of both years shows the estimated
expenditures for all other purposes for
the fiscal year 1881 to be about SAG 600
900 less than those for the fiscal wear
1880.
The President points out that the
amounts which are shown in this bud-
get as representing the receipts. expen-
ulIuico anu ouI pIuS LOT the nScal years
1929 and 1880 differ materially from
those contained in the budget for 1880,
as follows:
For 1929 the estimates in the $50 bud
get were: Receipts, 1891, 1856 and
tn expenditures, $3,794, 745. 469, leaving
the estimated surplus $36, 99O,l92. The
actual receipts were 81, 033, ESQ. 225. O5 and
the actual expenditures So, 848, Asa, / SO SO
making the actual surplus $l84,787,-
035.42.
For the fiscal year 1880 the estimates
in the 1880 budget were: Receipts, S3,-
! BAL 1895 1928 and the estimated expendi-
. lures $3,7s0,79l,647. leaving the esti-