Evening Star Newspaper, October 2, 1925, Page 4

PARLEY REVEALS FRANCE WILL PAY Conference Accomplished Much That Is Not Appar- ent on Surface. BY DAVID LAWRENCE. Joseph Calllaux, French finance minister, told members of the Amerl- can Debt Funding Commission that he might be back here for another con- ference within six months. From this as well as informal ex- vressions during the debt negotiations of this week the statement may be made that France intends to settle her war debt with America just as soon as there is political agreement in France. For while on the surface it may ap- pear that the negotiations came to naught, the truth is a good deal more was accomplished than the skeptics ever dreamed. Provisional under- standings were reached which carry the negotiations forward beyond any point they have been since 1918. Principal Results. Here are the principal achievements of the conference: 1. France recognized formally her debt of §3,200,000,000. and this together with the amount already recognized of $407,000,000 for war supplies makes a total of more than three and a half billions of principal. No recognition of accrued interest of $800,000,000 was put down on paper. 2. America_demonstrated conclu- sively to the French that the United States is more generous in her terms than was Great Britain in the recent Cafllaux-Churchill conference. This astounded the French, but the Amer- fcans worked it out in cold figures, and the French are still pondering over the effect of this when French public opinion digests the truth. ‘America placed on record an ar- gument that is somewhat new in this type of negotiation—namely, that it does not matter so much what a debtor country promises to pay 50 or 60 years hence, but what is the present-day market value of these promises to pay. In other words America told France that an annua! payment of $100,000,000 in the sixty- third vear would not bring today 3 per cent of that amount. Senator Smoot, indeed, remarked to M. Call- laux that the $600,000.000 of deferred payments which the French said thev would be willing to pay in the six ars following the expiration of the b2-year period would not bring today on the market a total of $20,000,000 in cash and that America might seri- ously consider forgiving such a sum if it were deferred and take $20,000,- 000 in cash. 4. The Americans drove home the point that actual cash payable in the next 12 years counted more than promises to pay in the succeeding 59 Years. Agreement Has Real Value. 5. The French actually signed a proposal which is an index of good will that cannot be underestimated, for many people here thought the whole trip to America was a gesture. The American commission is con- fident that the French government will find it difficult to reject the last American offer, which is that the French pay $40,000,000 a year for five vears, which includes the $20,- 000,000 a vear already being paid on war supplies bought after the armi- stice. America by proposing another debt parley at the end of five years struck a body blow at the security clause idea, which has been hanging over the negotiations from the start. Senator Smoot is understood to have assured his colleagues that it would be next to impossible to get through the Senate a security clause such as the French suggested. Instead, America has pointed out that If the debt is to be revised down- ward - because Germany fails to pay it might as well be understood that it ought to be revised upward if France's capacity to pay becomes better than has been expected. There are indica- tions that the French didn’t expect the thing to work both ways and that this kind of tactics may see the end of future proposals about safeguard clauses. Credit Need Spurs France. What will be the immediate effect on the conference here? For one thing the French will consider a long time before turning down the Ameri- can proposal. If they do, they will not get credits from American bankers. And although outwardly the French are anxious to make it appear they do not need new loans, the Amer- ican commission has information to the effect that French finances will require rearrangement with funds that are available only nowadays through American private bankers. As for the other debtor countries, Tzechoslovakia's mission is &oon to confer with the Americans to settle the $100,000,000 war debt. Italy’s mis- sion probably will not come now that the ~French-American negotiations have been postponed. America, too, would prefer to await the outcome of the French parleys before taking up | the debt problem (Coyri PLANS BOYS’ STAMP CLUB Philatelic Society Will Encourage ' Youthful Collectors. #he Philatelic Soclety will organize & Boys® Stamp Club, composed of outhful stamp collectors, at a meet- ing at 2 o'clock tomorrow at the quarters of the Phlilatelic Society, 1333 G street. The meeting will be conducted b: Yladamar Wiergang and J. D. K. Smoot, who will instruct the boys as to the collection of stamps, thelr value, how to arrange them in col- lections, and other information The Boys' Stamp Club will be af- with Italy. ht. 1925.) forded the privilege of the society’s|g rooms at 1333 G street as a place to meet and exchange stamps. All young stamp collectors are invited to at- tend the meeting tomorrow. dgo You can rid your doz_(or cat) of tor- menting, diseusccurraing fleas NI’S SKIP-FLEA SOA| wport and secd op or by mail BOOK. Polk Miller's fa- iseases. feed: nd ing_of dogs. Our FREE ADVICE SERVICE will answer any question about vour dox. State aymptoms, uge and breeding. Sergeant’s DOG MEDICINES - PolK 1305 East lier Drug Co.. Inc.. ain St.. Richmond, Va. THE TEXT OF FINAL U. S. PROPOSAL FOR SETTLEMENT OF DEBT As a final effort to bring about some arrangement for funding the French debt. the American Debt Commission, yesterday, on the final day before M. Calllaux and his associates were to sall for home, made a proposal which, at least, would cover the settlement for the next five years. This the French refused to accept. The text of the statement given out by the American com- mission follow: ‘We wish to express our high appreciation of the frank and earnest ef- fort of our French colleagues to find a basis for settiement of this, the most difficult problem which confronts our two peoples. ‘We have before us the revised offer of the French commission, that {s, France should pay $40,000,000 annually for the first five years; §60,000,000 an- nually for the following seven years, and $100,000,000 annually for the next 56 years, thus spreading payments over 88 years, there being important con- ditions attached to this proposal which render these payments entirely un- certain, Cite Extent of Concesslon. “The total payments offered imply a return of the principal of the debt and somewhat less than 1 per cent per annum. In order to {llustrate the sacrifice which such a plan would impose upon our people, we may point out that the present value of the above payments. if made in full (upon the basis of interest which we bear on Liberty bonds) is about $1,760,000,000. This amount compares with over $4,100,000,000 which we have to meet in charges upon our taxpayers in respect of the loans to France. In the plan which we 1aid before you the present value of the payments which we proposed would be about $2,§00,000,000 as compared with the $4,100,000,000 as above, so that we have made most important concessions. ‘“We belfeve it is fully recognized by both commissions that the only basis of negotiation fair to both peoples is the principle of the capacity of France to pay. ‘The rub of the difficulty of the two commissions arises from a differ- ence in judgment as to the future capacity of France to pay without, as we have stated, undermining her economic and social fabric and this difficulty narrows itself to the future rather than to the present for we are prepared to accept the views of the French commission as to the immediate difficulties of France. “In order that we shall not be unmindful of every effort to meet the whole problem and at the same time to maintain the agreed principle of settlement, and that there shall be no break in the effective continuity of our discussions, we wish to lay before you the following suggestion, that f: While we cannot accept the proposal made we do propose that France shal undertake unconditionally to pay the $40,000,000 per annum mentioned in your statement as your capacity for the next five years—this is to be con. sidered full current interest on the debt during that period, and at the end of this five-year period the two Governments shall again review the capacity of France to pay and determine at that time the amounts which shall be paid over such further term as may be then agreed. The above is, of course, subject to the approval of Congress. “It appears to us that within this period of five years the economic problem with which we are mutally confronted will have been much clari- fled and we shall both be in position to make better determination. We know that it is the earnest desire of the American people not only to be Jjust, but that they are willing to make necessary sacrifices. We believe that with peace, the natural progress of industry and commerce and the recovering strength of France, a basis can be found at such later date which will meet the views of our two countries.” Caillaux’s Rejection of Offer. In rejecting the final American offer, until he could consult with his home government, M. Caillaux said: “Before we answer the proposition handed to us, we desire to say to our colleagues of the War Debt Commission how highly we appreciate the constant courtesy shown to us and the efforts made to meet the difficulties which face our country. “We are also mindful of the principles laid down by your notes re- garding the unification of the debt and the reduction of the accrued in- terest. We furthermore note that you fullv recognize the capacity of France to pay as the only basis for any settlement of our debt toward the TUnited States “We would have been happy to reach a general and final agreement, which, within the 1limit he has indicated, the French minister of finance has been intrusted to sign. The arrangement you now propose bears a provisional character, which has not been contemplated by the government of the republic. “Consequently, being as desirous as you are not to interrupt the ne- gotiations, which cannot fail to reach an agreement, the minister of finance can do no more than to submit to his colleagues of the French cabinet in Paris, the propositions which you have made today, and he will do his utmost to give you an answer as soon as possible.” DEBT PARLEY BREAK tentative proposal offered by the American commission cannot help but impress the nations of the world, EVENING BTAR, WASHINGTON, DELEGATES CHEER WILD DENUNCIATION OF SAKLATVALA BAN (Continued from First Page.) understand the true sense of what has been golng on. With 41 nations represented, there are many different languages spoken. The conference itself was scored yesterday by Dr. Carl Lindhasen of Sweden, who charged that it had avolded “the burning questions of the day, as well as the necessities of the future.” Among other questions which he said the conference had de- clined to place on the agenda was the Geneva protocol. “A fatal defect in the protocol,” he sald, “is its standpoint that the rights of the people of Asla and northern Africa to self-determination is a pri- vate matter for the ruling European powers and not a question of inter- national law. The protocol condemns war of aggression as crime. But the English government's ultimatum to Egypt and the Spanish-French war against the Riffs do not seem to interest either the League of Nations or the Inter- parliamentary Unlion. These private matters of three powers. The appeal of the I Parliament to the parllaments of Europe for friendly intervention on the part of the League of Nations was received in icy silence. So were the appeals that the case of the Riffs be referred to the League of Nations. “This silence seems a criminality to me Dr. Fernand Merlin, president of the French group, declared the peo- ple of EHurope sincerely want peace. Baron Wittert van Hoogland of the Holland delegation submittted the recommendations of his country for disarmament. The plan, first called for compulsory arbitration of disputes. No nations, he sald, would agree to disarm lle they are in fear for thelr national safety. Viktor Kienbook, former minlister of finance of Austria, declared that' improve- ment of economic conditions in Austria was necessary to the general economic improvement of Europe. See Recovery Far Off. Sir Robert Horne, former chan- cellor of the British exchequer, de- Transportation Building 17th and H Sts. N.W. (with service unexcelled) IS DISAPPOINTMENT TO CHIEF EXECUTIVE (Continued from First Page.) against anything resembling a cancel- lation, wholly or in part. Further- more, President Coolidge has let it be known that'a nation’s ablility to pay should be taken into serious considera- tion in figuring upon a settlement, but at the same time, after a careful study of the French economic situation, he was inclined to-think that the terms of settlement should be closely in ac- cordance with the basis upon which the British settlement was reached. He always has contended that any settlement with France should have no connection with agreementsbetween France and any other European na- tion. This was directed at the French and British agreement. The last time the President expressed himself re- garding this was at Swampscott. ‘Would Deal Liberally. Taking the President’s position as a whole, it has been one of treating the French as liberally as he con- sistently could, but at the same time protecting the interests of the Amer- ican Government and the American taxpayer, and finally, to keep his pledge to the latter, that the foreign debts would not be canceled, and that an earnest effort on the part of this Government during his administra- tion would be made to negotiate a funding of the billions owed the United States by the French Republic. While this tentative agreement to give France a breathing spell of five years, during which time she is to pay only $40,000,000, may be far from the President’s liking and very disap- pointing to his fond hopes and expec- tations, it is the opinion of some of those close to him that he can de- rive some little solace out of this makeshift. In the opinion of President Cool- idge the generosity involved in the Y A TeReNe e e N €T ETE Change to Heavier UNDERWEAR Featuring RIBBED UNION SUITS At$1.39 Just the garment you should wear these cool Fall days., We have them in sizes 36 to 46—in ecru color with long cleeves and long legs, nicely finished and well made. ' 910 SEVENTH ST. N.! £ more especially those in Europe, that the United States has great confldence in the ability of France to restore it- self upon & sound economic basis within the next five years. Inasmuch as France's restoration is almost en- tirely dependent upon the stabiliza- tion of the other important nations of Europe, principally Great Britain and Germany and Italy, this feeling of confidence naturally enough could be applied to these other nations as well. There is no mistaking the fact that President Coolidge, while disappoint- ed, has the personal satisfaction of knowing that he tried to accomplish something definite; that his adminis- tration did as well as it could and as well as any one else could have done under the pecullar circum- stances. in Washington's fast- est growing section—convenient ng than 60 per cent of Government workers— Omce space in a bullding giving the highest type service—within walking distance important Government departments—State, War and Navy, Treasury, Department of Justice, Interstate Commerce, Departments of Labor, Interior and Railway Administration office, etc. Randall H. Hngner & Co. 1321 Comn. Ave. Phone Main 9700 -— Because her earning capacity as woman was too small to support her children properly, Mrs. Edna Brit- tendall of Los Angelés, Calif., posed as a man and worked as a day; laborer. D. T, FRIDAY, OCTOBER 2, 1925 clared the miseries of war had not “Even now,” he sald, after the armistice, it is a world of misfortune upon which we turn our eyes. ‘S0 far as human reason can fore- cast it wil! take more than a genera- tion of complete peace among the nations before it will be possible to make substantial.recovery from the devastating effects of the great war. “You would have supposed that the shocks and trials which we have un- dergone would have exercised _the spirit of strife from the breasts of all men of our period of time; yet as we look out on the world today we are bound to realize that not all of the convulsions and catastrophies, which have shattered Europe have yet serv- ed to induce the nations to use every endeavor to reach conditions of set- tled peace. “At this moment, a new menace hangs over Mesopotamia, where one of the dlsputants—in spite of ap- parent submission to the council of the League of Nations—deflantly as- serts that unless the decision is in his favor he will refuse to accept it. Warns of Red Menace. “There are also enthroned in the government of one of the nations of Europe the representatives of a po- Utical creed, who openly avow that their first principle is, by violence and, if necessary, by massacre, to force upon the other nations of the world their system of government by terror. “Their activities are manifested in many parts of the world and most conspicuously against the nations of Europe, which they regard as mo: stable and therefore most capable of resisting their subversion theories. If they should succeed in any country— farewell to that peace which we seek ;l; x‘;nsch as the only hope for man- nd.” Red Cross to Give Tea. Delegates tc the Interparliamentary Union will be guests at an informal tea tendered by the American Red Cross from 4 to 6 o'clock this after- noon. Miss Mabel T. Boardman, national secretary of the Red Cross, arranged for the reception. Red Cross offi-| ctals will be in the receiving line, and special interpreters will be on hand to conduct the guests through the Red Cross Museum and other inter- esting exhibits on display at the na. tional headquarters of the organiza- tion. The United States Navy Band, under the direction of Charles Benter, will furnish music. All business was suspended in the town of New Buffalo, Ind., April 11, in order that every one could take part in celebrating the 106th birth. day anniversary of Mrs. Mary Herr- man, the town's oldest resident. MORRIS PLAN BANK Under Supervision U. S. Treasury 1408 H ST. N. W. L =] 0. J. DeMOLL i i | DeMoll S EMMONS S. SMITH Will Christen Plane Carrier. Secretary Wilbur of the Navy De- partment will leave tonight for Quin- miral Willlam A. Moffett, chief of the Bureau of Aeronautics. ‘The ship is to be christened by Mr« T. Douglas Robinson, wife of the PIANO AND FURNITURE CO. TWELFTH AND G STREETS SPECIALS FOR BARGAIN SATURDAY USED UPRIGHT PIANOS Vocalion The Piano Shop 227 Pennsylvania Ave. S.E. PLAYER-PIANO FREE SALE (LIKE NEW) 88 NOTE COMPLETE 10 MUSIC ROLLS Bench to Match Extra Special Price %195 Very latest style—rich ma- mellow NO MONEY DOWN —if you trade in your old upright piano. This applies to any player in our stock. hogany case—sweet, tone—one of many great bar- gains in this sale! Brand-New Players at $269, $298, $325 Up (1T —at a New HE “Varsity” Oxford calf, is the new Fal 8 THE subt taste cerning passing style - right. SHO | The Piano Shop— I ] Gentlemen: Please send me ] 227 Pennsylvania Ave. Southeast full detalls of your great | player offer. | OPEN UNTIL 9 O’CLOCK SATURDAY T A B B ) $ colors are pleasing. Three Browns— Thrush, Tawny Three Grays— Pen, Quaker and Pearl. ‘Raleigh H T 94 Sale Starts 9 O’Clock Used upright pianos go on sale at the astonishingly low [E= price of $94.50. Many well known makes are represented. Get in early if you want a good piano at a big saving— Special Bargain Saturday Records 2 for 75¢ Saturday Only $300 Vocalions . .............$100.00(= $225 Vocalions ...............$69.00[= $125 Vocalions ........... .~ ..$39.00 Time Payments If Desired N The Stetson “Varsity’ Low Price $10 , in black and tan Russia 1 season's most popular style choice by young men. It’s a new broad - toe model that college men would “walk a mile for.” AA to D widths; in sizes from 5 to 11. Young Men Will Like the Knox “Fifth Avenue” le air of good and dignity about your Knox “Fifth Avenue” will tell the dis- world that youre absolutely The new and Butternut. aberdasher Thirteen Ten F Street Asistant Secretary of the Navy. . During the visit of the Maharajah cy, Mass, where tomorrow he will be present at the launching of the airplane carrier Lexington. He will of Patlal cupled be accompanied by his aide, Capt.|{ne whole ot tancCmel® Joecupled Walter R. Gherardl, and Rear Ad-|require an entire floor of rooms there All-year location in the residgntial hub of northwest; on high elevation, overlooking the entire city and Rock Creek Park. Apart- ments with large outside rooms, spacious closets, built-in bath fixtures, reception halls and balconies; latest improvements; 24-hour service. Moderate rentals. Resident manager on premises. 'THE ARGONNE 16th and Columbia Road N.W. EISEMAN'S—/th & F I EISEMAN'S—7th & F Unequalled Values In 2-Trousers Suits Students and who wear stylish clothes will like these fine Suits. They are tailored in the latest men Fall models. Each suit has two pairs of trousers —which doubles the wear, as every man knows. There is a good choice of the best Autumn colors, including the ever-popular blues. 525 and *30 Topcoats Regular $20 to $25 Suits and Qvercoats Special 15 Don’t get the impression that because the price is only $15 that quality and style are missing. These are not ordi- nary $15 garments, but the class of goods you usually pay $20 to $25 for. Come in Saturday and get your Fall suit and overcoat at substantial savings. Topcoats of pur patterns, beautiful Regular $25 and Beautiful Silk-Trimmed ‘Tuxedos 25 EISEMAN’S remarkably low price. And we have your size whether you take a regular, short, stout or slim, 7th & F Sts.