Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-07
FRENCH RUE LOANS
TO CzAR|ST RUSSIA
Bond Total of SO, 900, 600,
600 Now Worthless Paper
Unless Soviet Pays.
BY Gable to The Star.

PARIS, September Tn nearly ever
home in France today thrifty citizens
are taking from drawer or a cupboard
shares and bonds Of the Czarist perioe
In Russia. They turn them over anc
over, wondering whether they will eve
be worth more than the paper on which
they are printed.
These shares and bonds are beinl
scrutinized because Of an announce
ment by the French government tina
the Franco-RuSsian commercial nego
tiationS now In progress are 1ndissolubly
linked with the question Of pre-wal
debts. In other words. France insists q,
she has insisted since the Russian revo.
luton, that she will not open credits X
the Soviets until the latter acknowledge
the CZarist debts. ....
Nor Is this the sole difficulty. France
insists that a pact of non-aggression, Al
linked with the commercial accord, both
negotiations running parallel. France
also would like to see a similar pact
between Russia and Poland, avowedly
as q counter stroke to the RusSo-Ger.
man treaty of Rapallo. Developments
this week indicate strong German OBJ
jections to this course, and the whole
scheme seems threatened. At best II
is likely to take long time to adjust
all these differences, so the question
of Russia's pre-war debts must remain
in allegiance indefinitely.
$4,000, o0O, 900 Valueless.
At a time when the average French
man Is reluctant to give financial help
to Germany, the history of the Russian
shares and bonds so ruefully contem-
plated today may serve to explain his
point of view.
Thrifty French citizens advanced
nearly $4,000, 100000 to Russia before
the war and they are waiting for Russia
to pay her debt. But Russia answers
THE Russia to which you lent was
Czarist Russia. Today there is a Soviet
Russia. You lent to the Cars and
their governments, not to the Russian
nation. We cannot recognize the debt.
To this the French retort that most
Of the money was subscribed to loans
for public utilities or for such national
purposes as to enable moujiks to buy
land, and much pre-war gold was In
vested by the French in private enter
prises In Russia. So that even II a
minor portion of the $4,000 100000 can
be considered as advances to the Cars,
the bulk was destined for Russian
national or corporate enterprises from
which the SovietS have benefited.
Because OF their Russian experience,
small French investors are not eager TO
lend money to Germany today. Yet
never were investments more popular
than those which drained French purses
for the benefit Of Russia from 1898 to
1914.
The 20 previous years had been de-
voted by France to her rehabilitation
after the disastrous Franco-Prussian
War Of 1901. Bismarck had believed
that by levying a war indemnity OF
5000, 900, 900 francs-a colossal sum FOL
the time-he would keep France crushed
economically for at least two genera
tons. But the French astonished Bis
marck-and the world with him--by
clearing the debt in five years.
Hope Soviet Seeks Credit.
II took some 20 years to recover
entirely from this effort. Then, Bis
marck having fallen in the meantime
France sought to restore her prestige
as a first-class power. She turned tc
Russia to Offset the triple alliance o.
Germany, Austria and Italy, and the
dual alliance was proclaimed oh1cially
In 1893.
Although republican France and alb
Soluist Russia were as opposite as thu
poles, an astounding wave OF pro-Slav'
ism swept this country, so great wa!
the relief at finding an ally which as
sured world recognition again. 1t wa!
considered very natural that Russis
should turn to France for funds. Rus
sian loan followed Russian loan anc
all were oversubscribed by the French
The result was that more than $1,000
100000 golden louis we're converted into
rubles. or an average of $40 for eacf
man, woman and child In France. To
day they are represented by WORTHLESS.
shares and bonds.
The only hope of French investor
is that the Soviets may become so sore
ly in need of credits that they will &C
cept responsibility for the loans. Blu
it Is slim hope.
With his franc investments reduced
by -fifths because of sterilization
with his ruble investments reduced K
nothing at all, the thrifty Frenchmar
today does not feel tempted to try in
vestnents in reichmarks
(Copyrighr. 1917