Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-22
FOUR TOPICS FACE
LAVAL AND HOOVER
Security to Be Foremost
Condition Set Up by
French Premier.
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Continued From First Page.)
versations depend good deal on the
Interpretation the guardians of Frances
security are going to report by cable
to their influential journals in Paris.
Reports Not Encouraging.
The world is in a sore state today.
Reports from Germany and Great Brit
ain are far from being encouraging.
There has been recently an attempt
to raid the dollar; some $500 ,0O0. 600
have been withdrawn from New York
by French depositors. This was not a
political move; the French depositors
considered that they could obtain a
higher rate OF interest in Europe than
in America. Two countries, the United
States and France, happen to be today
the richest In the world, as far as
the possession of gold Is concerned,
Everybody hopes that the converse
tons between the leaders of these two
countries VIII bring some sort Of an
agreement which might relieve the gen.
eral situation OF the rest of the world.
Both President Hoover and Premier
Laval are prepared to explore together
all the phases of the present world
wide crisis and possibly lay the basis
of some future agreement. The cues
tions which the two leaders will ex-
plore are Cd the German moratorium
20 the question of disarmament. with
the inevitable question of French Sc
curity; go the question of redistribu-
ton OF gold and a. the question of
reparations and debts.
Debt Holiday Is Problem.
The President Is reported in banking
circles to be favoring an extension of
the intergovernmental debt holiday,
which expires in July, 1882. Germany,
1t is authoritatively said, Is unlikely to
resume payments at the end of the holi-
day. Practical politics would demand.
consequently, that some ARRANGEMENT
be reached before the end of June
Most OF the interested countries are re-
ported to be in favor Of a prolonga-
ton OF the holiday for another three or
Tour years. France, which has re-
luctantly accepted the Presidents holi-
day proposal, is reported to be opposed
to any further postponement
The French point of view is logical.
They say that a mere postponment for
another few years is not sufficient for
Germany-what that country needs is
new capital, because since last May she
has been drained of almost all the gold
she had borrowed in this country and
in Britain. The country is for all in
tents and purposes bankrupt. If she
wants more credit, she must do what
any ordinary bankrupt firm does-put
before its creditors the balance sheet, let
them study the situation and II more
capital Is needed to refloat the business.
the creditors must have their official
receivers to see how the money is ex-
pended.
This means really a financial control
OF Germany, which she is unlikely to
accept. The idea is pleasing neither to
the President nor to our bankers Con-
Sequently, the American and the French
viewpoints regarding this question are
Tar apart, but 1t" is expected that a
frank conversation between Hoover and
Laval might result in bringing the two
! points of view closer than they are to-
day.
Arms Question Complex.
The question of disarmament pre-
sents as many complexities as that of
the debt holiday and is indirectly linked
with the question Of debts.
Premier Laval is avowedly q partisan
OF disarmament He does not believe in
wars, but believes in French security.
His government has repeatedly stated
that France cannot think of disarming
without obtaining some positive guaran-
tees that she will not be left alone in
case of another attack from some of her
neighbors. She has told US officially
and unoff1cially several times that If we
want her to disarm We must enter into
some sort of consultative pact. She is
willing to leave it to President Hoover
to decide what form such a guarantee
should take. But even with such a
guarantee, it is said, public opinion in
France would not accept reduction
of her armies on an equal footing with
her neighbors.
A reduction in the budget of the ma
tional defense would be acceptable to
her because France, having a conscript
army, which costs much less than a
professional army would always be
in a position to have a larger number
of men under colors than her most
feared neighbor, Germany.
Face Budget Deficits.
The French premier will agree to dis
cuSS with the President the question Of
the coming General Disarmament Con-
ference, because he knows that this is
a matter which lays deep in the hearts
of the American people. The general
feeling in France, however, is that the
less said about this question the better
for all concerned. All countries in the
world are suffering from a terrific eco
nomic depression. All nations have i'm
portant budgetary deficits this year. It
Is natural that in order to balance their
budgets the European countries will
have to cut their expenditures. and it
is only natural that they should begin
with the heaviest expenses, which are at
present for their armies and navies.
This would come as a natural thing
to most countries, provided that public
sentiment is not aroused. The best IL
lustration of this theory is the French
Italian naval race. Until the London
Naval Conference Italy had said Moth
ing about naval parity with France.
From the moment this question was