Ogden Standard-Examiner | 1923-11-25 | Page 3 | France Gives Loan Reasons

FRANCE GIVES I LOAN REASONS Lends To Others But Cann Cannot t Pay U S Interest By WILLIAM BUlB Special Cable to The Standrd- Standrd St nd nl Examiner Copyright ht 1923 1823 PARIS Nov France Franc H is pre pre pre- pre baring to answer the anticipated questions now How doe does doos It happen lappen whereas berens France declares res she can can- c hot n bot pay e den een e en Interest on her war debt to America she can never never- nevertheless nevertheless nevertheless loan loon huge sums to the so- so called so-called called oual aasal states states Poland flu Ru- RumanIa Ru Rumania mania and Jugo Slavia T This answer will wilt take lo in Its broad lines th the following form torm It Is true that the French gov gov- government gov- gov government now has pending parliament a s propos l to lend 1 1 francs or roughly II a hundred million dollars to the abOve three e nations for tor the pur pur- purpose pur- pur purpose purpose pose of ot strength strengthening their mili mili- military military tary tan defenses dett It Is la also true that this amount is III about equivalent to annually to what hat would be needed pay Interest on the debt to Amer Amer- Amer lea Ica at t the tho same ato rato the British are aro now paying Contrary to the gheral Impression Impression sion slon this Is the first loan made by France to these countries al- al although although al although though Immediately after aCter the ar- ar armistice ar armistice like all the other CUI allies os In Including eluding Am America sold surplus mili mili- military military tar tary supplies on long time credits to 10 the smaller powers power These sup sup- piles tup-piles were useless for tor any ony other purpose and would base e ha o been a dead loss disposed of ot In this way A year a ago o the French proposed to parliament to loan to Poland francs la a loan to Rumania Ruman of ot francs and Ii d a loan Joan to Jug Slavic Slavia of francs franca But while the chamber chomber of ot deputies de passed the bill Ithe the senate did not Since Sinco then de- de mands de-mands that both hous houses s will pass the new bill bitt promptly but French officials point out that thU this mon money y yI I snot not actually loaned In cash but only In tn commercial credit credits tor for the purchase of ot military supplies In France Franc The result of ot this Iran tran- tran transaction will be Improvement In Ir the French Industrial situation and a 0 to uphold the franc In the tendenCy foreign exchange market On the other hand were a simi tar amount transferred d to America In cash tor for payment of ot Interest on loans It would Ilean Tean such a II heavy Y purchasing power of ot dollars In the exchange market that the franc frane would slump tar ar below the lowest levels It has bas ha yet touched But the strongest argument as athe the Fr French see It It Is the that the loans lorns to friendly European states for or perfecting their military equip equip- equipment equipment ment merit ar are necessitated by the fact that American and Great Grant Britain hue have tailed failed to ratify the tr treaties lot of guarantee signed by Woodrow Wilson and David Lloyd George orge Failure of ot the An Saxon Anglo Saxon lo nations to to guarantee France ag against Oar Oer- Ger man aggression ha his hILS compelled d France official here say to tie tie- depend pend de-pend pend for tor military aid on the small pend I European states go 00 I