Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-28
HOOVER PRAISES
FRENCH DEBT PACT
Wipes Out War Period Obi
cations, Says President
in Statement.
BY tho Associated Press.

President Hoover in expressing srsti-
ficstion yesterday that France mad rati-
fed the Mellon Berenger debt agree
ment. told the American people thu.
this settlement in effect wipes out the
entire Indebtedness of France which
arose during the war period. and Simply
proVloes fCr the payment of advances
to France sfter the armistice.
Il think IN fairness to the American
people l am justified In mentioning the
liberalty Of the settlement" the Presi
dent seid. adding that the French debt
10 the United States on June Is. 1925
was $4,23o, 100000 and that on a per
cent basis. which the French obliga-
tons bear the present value of the paw
n1ents in the Mellon Berenger agree
ment concluded subsequently Is 81, $751;.
900, 900
The President said the advances m
France after the srmistice aggregated
with accrued interest 1855 900, 600,
and continued:
While some OF the after-armistics
advances were made for the liquidation
or obHgations incurred in this country
Dy the French government during the
war considerable advances during the
war period itself we're for permanent
improvements. for shipping, for the
meeting OF obligations to private cred
itors incurred prior to the entrance of
me united States into the war. and
advances to the Bank OF France for
credit and exchange purposes"
Measure Of Sacrifice.
Mr. Hoover said he was giving thes.
1acts so that in recognition Of the hon
oraole way in which France has acted
10 meet It's obligations. they will un-
oerstand that our people. too. feel that
this settlement involves a measure of
sacrlf1ce on their part"
secretary Mellon, who headed the
commission which concluded the agree
ment. in statement issued sirnuItane-
ousiy with that Of the President said
tne french ratification would prove a
economic progress
the White House upon his authorize
lows: -oi
=, l am very much gratified to learn
mat france has ratified the agreement
providing for the settlement of the
Geot OF the French republic TO the
ohlted states. thus disposing, in so far
as hes within her power, OF one more
OF the great financial problems left over
oy tne world War With the high
sense OF homer and financial RESPONSE
dizzy mat has always characterized the
actions of the French people. it. was
always certain that to the full extent
OF their ability they would meet their
oollsations. The definite settlement OF
the amounts to BE- paid in complete
olscharee OF this debt is a cause for
mutual satisfaction removing a. II
Goes question that has occasioned
mucn controversy and debate
The settlement calls for payments
OF S35.0O0,000 in the fiscal year 1880.
gradually rising over a period of ii
years until they reach a maximum Of
$l25,O0O,000 annually.
Liberality of Settlement.
think in fairness to the American
people 1 am justified IN mentioning
the nberality of the settlement. The
total debt Of the French republic to
the United States as of June Is, 1925.
was approximately $4.230 900 600. On
per cent basis. which is the rate
OF interest borne by the obligations
given by The French Government the
present value OF the payments provided
1or by the Mellon BerenSer agreement
Is 81 ,682 900 900, or, in other words, A
reduction OF approximately 81 per cent
OF the total indebtedness This settle
ment In erect wipes out the entire in
debtednesS of France which arose dur
lns the war period and simply provides
Tor the payment Of advances to France
after the arniStice. which aggregate.
including accrued interest. 1855 600.
goo. While some OF the after-armistice
advances were made for the liquidation
or obligations incurred in this country
by the French Government during the
war, considerable advances during the
war period itself we're for permanent
improvements; for shipping; for the
meeting OF obligations to private credi-
tors incurred prior to the entrance Of
the United States into the war. and adj
vances to the Bank of France for credit
and exchange purposes.
i am giving these facts so that in
recognition OF the honorable way in
which France has acted to meet its OBJ
legations, they will understand that our
people, too, feel that this settlement in
wolves a measure of sacrifice on their
part. There ID every reason to hope ard
believe that such an agreement. based
as 1t is on mutual sacrifice and consid-
GRAFTON, cannot but promote A better
understanding between these two great
nations and serve further to cement q
friendship that has lasted for a CEN
fury and q half"
Sacrifices Both Ways.
secretary Mellon said that the agree
mert involved some sacrifice on the part
OF both France and the United States
The amount agreed upon he said was
determined without taking INTO consid-
Grafton any payments from PREPARATIONS
or other such outside sources. and the
remarkable financial and economic re-
covery Of France "is convincing evil
de11ce that great hardship will not be
imposed upon France in meeting the
payments to America"
In so far as this country is con-
cerned," Mr.. Mellon continued, at
brings to successful conclusion the
task Entrusted to the World War Debt
Commission to negotiate settlements
with the various nations for the debts
incurred during and after the war.
Agreements have been reached with
Great Britain, Finland, Hungary. Lithu-
ania, Poland, Belgium, Czechosloyakia,
Latvia, Estonia, italy, Jugoslvaia, Ru-
mania. Greece and France, bringing
the total amount which has been fund.
ed to date to $11.554, 65l 900.
"All these nations are punctually
meeting their engagements, and the
payments as they are received are be-
ing applied on the debt owed by this
Government to It's bondholders.'