Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-01
Washington Ticker

Circumstances and conditions, IN
spite of efforts of both the French and
American governments, are combining
to force the situation as t the French
war supplies debt to the United States.
totaling $4o7 ,000. 900, to the extreme of
payment in full in cash on August |.
All that can intervene to avert the
necessity, in the opinion of American
officials, is an acceptance within the
next six weeks by the French Parlia-
ment of the Mellon Beranger agree
ment, throwing the war supplies &C
count into the much greater total Of
the French war debt to the United
States and putting the entire sum into
a Cougar schedule of payments. Such
an acceptance the Parliament has re-
fused to vote during more than two
years while the agreement has been
pending, but there is now a chance that
the French cabinet will test the senti-
ment of the deputies and bring the
measure up for a ratification vote.
notwithstanding, it Is an open secret
in Washington that French banking
agents have been holding for weeks
sufficient international gold exchange to
meet the S4O7. O00, 900 payment that
falls due within so days. Further,
though the administration has sug-
gested to Congress that a postponement
of the payment be allowed, and resolu-
tions are pending in both the House
and Senate on the point, the text of
them makes no real change in the
situation.
Under the resolution which we have
put in, France will not have to pay the
war debts claim if the French Parlia-
ment ratifies the whole debt agreement"
explained Chairman Hawley of the
House ways and means committee, who
introduced the measure. by it's
terms France will either have to ratify
or pay, without other alternative. We
propose to pass the resolution before
the House recesses for Summer. while
the Senate works on the tariff bill. I
do not look for n opposition to it,
since it merely constitutes full demon
stration that the United States is stand
ing by the Mellon Beranger agreement.
and is willing to facilitate the execution
of that contract.
1T is my understanding that the sue
cessful termination of the reparations
discussion, now looked for. will make it
more probable that French opinion will
favor the full settlement. In any event,
by adopting the resolution, Congress
will have authorized administrative
dealing with the subject during its re-
cess. provided always that the French
ratify the main proposal"
The wal supplies account, though its
contemplated payment on August l
would be one Of the greatest interna-
tional financial transactions on record.
covers merely the debt set up when
France purchased all the munitions left
in that country by the American Army
after it returned home in 1919. In
terest has been paid on it regularly
since.
1t has been evident that acceptance
OF the lump sum at this time would be
regarded as slightly embarrassing by the
Treasury Department, in that it might
lncite attempts to increase appropria-
tons. However, unless Congress took
advantage of the windfall to lecislate
some disposition of the cash. it would
be applied directly to the reduction of
the national debt.
There is a fairly direct relation be-
tween the construction of new houses
and the sale of rugs and carpets, though
1t is somewhat hard TO work it out OK
actly. Inquiry into the degree of par
alle4 is now of the research lines
being taken up by the American Insti-
tute OF Carpet Manufacturers.
1T is inferred rather than demon
strated that about half the annual sale
of new rugs and carpets in the United
States is connected with new building"
said Irving S. PAUL. president of the
institute. but the subject is one about
which we DO not know as much as we
should. Our market studies will have
to be pushed a good deal further in the
future TO determine the point"