Evening star., 1932-01-20
FRENCH POLITICS
MAY HALT PAR[EY
Delay of Week or Months Ex-
pected in Starting Repara-
tions Study.
Continued From First Page.)

Continued From First Page)
1t will be merely meeting of experts,
1t is said, to arrange an extension OF
the German reparationS moratorium
from June 80 until December Is, the
date on which the first war debt pay
ments to the United States fall due
after the expiration of the Hoover
moratorium.
The French and German elections
will be held this Spring and the Amer
ican next November. The real repara-
tlons conference will be summoned, &C
cording to the present Anglo-French
plan, in November, Immediately after
the American elections.
Vote Occupies Lavaps Mind.
Meanwhile the disarmament confer
ence will have taken place and the
great American experiment Of the emer-
gency credit corporation to cure the
world depression will be well under way.
The essential factors in determining
the foregoing decisions seem to have
been the French refusal to grant
Germany any extension OF the repair
ations moratorium unless this Is ac-
companied by simultaneous war
debts moratorium, and the d1sincllna-
ton Of the United States to consider
an extension of the war debts mora
torium until after the American elec-
tions.
Premier Pierre LavaPs government
in France, which soon will undergo the
test Of vote of confidence IN the
Chamber Of Deputies, is preoccupled
with the imminence of French electlons
and is doubtless relieved that 1t Will De
able to escape for the present the re-
sponsibility Of having to take any lar
reaching reparations decision.
France May Call in Gold.
Meanwhile there are signs that
France intends to bring home from
New York and London its ear-marked
gold and considerable part of its
dollar and pound balances, taking care,
however, not to upset the exchange
markets by any brusque movements.
The shipment from New York in 10
consignments of some $120,000,000 be-
longing to the Bank of France seems
already to have been arranged. Dol
lar balances totaling perhaps $3.50, ,0OO,-
900 more will doubtless be only very
gradually withdrawn as market condl-
tions permit The Bank of France and
the Federal Reserve seem to be In COM
plete agreement on this policy.
1t is recognized that the maintenance
of these fairly heavy French balances
in the United States now is apparently
doing more harm than good to Franco
American relations, so that the sooner
they are repatriated the better both
countries will be pleased. The Laval
government and the Bank Of France
have been under strong political pres
sure here for some weeks to take this
step.
French Feeling Depression.
M. Laval is accused in some quarters
of having played fast and loose with
Frances resources in the last few
months by letting Germany off with
$50 100000, lending the Reichsbank
$25 900, 900, advancing Great Britain
first S125, 100000 and then 5000, 900,
lending Hungary $l4,500,000 and leav-
ing in the United States about
$500 900 900.
The French people are feeling the
world depression more and more. They
fear that a crisis is approaching in
Franco German relations. Well in
formed French financial circles think
that there is a good chance that the
American $4,000, 100000 emergency
credit plan may really mark the end
of the depression, If its psychological
effects are not nullified by some new
European or Asiatic crisis.
Plan Held Bold Move.
They think, however, that 1t is a
bold move. The daily New York dis
patches of the well known American
economist, Henry Parker Willis, to one
of the most read financial papers of
France, have insisted on the initiation
ist character of this new American
plan and caused deep impression
throughout Europe.
Also Senator David A. Reeds recent
statement about large French balances
we're misinterpreted in general press
| dispatches from Washington to the ef-
feet that the United States might re-
duce all the European war debts except
the French have created an unpleaS-
ant impression in Paris.
In more general way the French
inclination to bring home foreign bal
ances seems to be in harmony with the
present phase of the depression wherein
| not France alone, but every country
seems to tend to shut itself in with all
its available assets and let the storm
blow by.
(Copyright, 1922