Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-22

BY the Associated Press.
Final French decision to start at
least on the formal attempt to pay of
the entire $4,000 100000 of its war debt
to the United States opens whole ave-
nue. of new possibilities of effect on the
interna tional monetary and credit situa-
ton. Gains to the United States Treas
ury from the first-year installments are
quite trivial and will amount to but
$1,000 900, offset by the fact that
France will cease to pay the s20,000,0 900
annually that has been regularly re-
Ceived since 1920 as interest on war
supplies portions of the whole debt. The
tnstallments will increase yearly, how
ever, for the first 81 ytars and eventu-
ally promise to become important in
size.
But the Banque de France. acting in
part for its government to acquire funds
for international use and in part as a
lending institution seeking high inter-
est holds now 81 900 100000 or there
abouts in American and English cur
rency bills, gold and short-term obli-
cations. American Government Off
Gals have known for months that more
than S400, 900, 900 of this sum lay in
New York destined to be used for pay
ing off the war supplies portion of the
French debt to the United States which
step has been made unnecessary by the
ratification.
Will this great sum now go home to
France? Few informed people in
Washington think that it will do so i'm
mediately. In fact, the earnings from
it during the prevailing period Of high
collateral loan interest in New York will
more than meet present French obliga-
tions under the debt settlement. While
call rates remain high in the United
States that cash is expected to stay
civ &c he
the greatest practicable return.
However, France owes England nearly
as much as she owes the United States,
and is a creditor from Germany in
amounts that will theoretically be more
than over both accounts. Thus begins
TO grow an outline of the business that
awaits the new International Exchange
Bank that the reparations settlement
agreement contemplates. 1t may be eX-
job of matching up the back-and-fortf
capital movement that will adjust these
gigantic French accounts.
Railroad officials. who have studied
last weeks decision of the Interstate
Commerce Commission limiting the free
Use of railroad-owned private cars, are
inclined to exchange congratulations
with each other. Though the matter is
hardly important financially, it has been
the custom for every railroad to haul
the private cars of officials of other
companies free. and to receive reciprocal
service from other lines for its own cars.
Now each system will have to pay reg
lllar rates for the haulage given its cars
off the home rails Or rather, it will
receive bills from other carriers for such
,ilaulage every six months, will render
bills for the haulage 1t has given other
lines and will pay or receive the differ
ence necessary to balance the accounts.
But-and this is why the decision is
welcomed-there are certain small rail-
roads in the country, some owned by
large industries, rated rs railroads
which sport hocks of private cars. They
are assigned to wealthy owners of the
small road or banking representatives
with a free hand and move all over
the United States at the expense of
other carriers Their home lines are
only garages for theze beautiful equi-
pages and seldom are the home lines
ever visited by the cars of strange
railroad.
Now ell these little roads will be
forced to pay up for the private car
service their owners have had free SO
many years 1t can be expected that
the first effect will be an immediate
sshrinkage in the amount of private car
mileage. and railroads will be happy
about that for such attachments to
regular trains are regarded as serious
nuisance by all operating officials.