Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-21
WASHINGTON OBSERVATIONS
BY FREDERIC WILLIAM VILE.

Pierre Laval. premier of France.
america honored guest, disavuwS all
the plans and proposals attributed to
nm IN connection with his visit to
washington this week. One proposition
nevertheless Is perSistently discussed as
the one the French seem most likely to
put forward. In a nutshell 1t is this:
france opposes extension of the Ger
man moratorium, but would consider
an aH-around reduction OF intergovern-
mental debts, including reparations
From the French standpoint there is a
certain plausibility that would Justify
M. Laval in submitting such an ar
rangement to President Hoover. France
never liked the moratorium in the first
place. 1t abruptly cut her off from
an income of roundly Sl94,OOO,O 900 a
year-practically all Of it from Ger
many. The money represents fat item
IA the french budget, According to
Inc Germans, separations are financing
the construction of the great new for
tlncations en- Frances eastern frontier
AN lmpregnable wall of steel and
concrete from the Alps to the sea.
X X X =
Until the Hoover holiday" set In last
July, 81 per cent of German reparation
payments found its way into the French
treasury. Vital as that stream of gold
Is, Paris would much rather have the
now reduced in volume than run the
FISK OF the stream drying up. A years
moratorium was one thing. Another
oeot holiday Of year, or perhaps
longer, Is very different thing, as the
french view it. 1t is a horse of an
other color mainly because of the peril
that extension of the moratorium might
become habit, leading to stoppage of
PREPARATION payments altogether, That
Is not a4proSpect which fills the French
with any enthusiasm, and it is one
they are anxious to Danish Quite apart
from the crimp which indefinite post
ponement OF German PREPARATIONS would
put in her national income. France has
an important political reason for want
ing the payments to continue. While
they do the French hold the ancient
foe under tribute. They will sleep much
better at night if the Reich's nose is
kept to the grindstone. Preparations
are one form of the security" France
demands against Germany.
* X X
In the latest White House utterance
on debts capacity to pay" was re-
affirmed as Americas policy. It is the
basis on which the $4,000 900 900 at
one time owed us by Europe was slashed
by agreement to a total worth today
only $780, 900. In 1928, when the
Baldwin Montagu funding settlement
was made, Great Britain possessed far
and away the greatest paying capacity
of any of Americas debtors. Thereupon
the British were committed to paw us
500 per cent of their original obliga-
ton. A couple of years later the Beren-
ger mission came over from France and
funded the French debt at 1877 per cent
of the original: Still later the Volpi
mission effected a 1913 per cent settle
ment for Italy. Britain agreed to pay
3.3 per cent interest; France, 1.6 per
cent, and Italy, a per cent. The
Mussolini rate was less than an eighth
OF the rate offered to Great Britain.
Since then the times have changed
Today France has UNNECESSARILY more
capacity to pay" than any country in
the world barring alone the United
States. What hot time there'd be in
Paris if President Hoover should pro-
pose to M. Laval the revision of the
British debt downward and the French
debt upward-on strict application Of
the capacity to pay" principle!
81 \ X
The Navy gave its usual spick-and-
span account of itself at Yorktown, no
doubt wanting to put its best webfoot
forward before the commander in chief
in this grim hour of the fleets fortunes.
The President isn't much of a sailor+-he
has too many painful memories of cross
ing the English Channel during the war.
But Mr.. Hoover could not have failed
to be thrilled by the magnificent dis
play put on by the scouting squadron
assembled IL the York. Four or five of
our newest 10,0O0-Jon cruisers headed
the line down which the U. S. S. Ar
kansas, carrying the White House party,
passed, as endless 21-gun salutes roared
out In the Presidents honor. Forty
other men-of-war, cruisers, destroyers
and Coast Guard vessels, were on parade.
rails manned, pennants afiutter and