Low Finance?

Hardly had Czecho-Slovakian President Masaryk and Foreign Minister Benes shaken the dust of France from their shoes (TIME, Oct. 29) than the French Government announced that it would ask Parliament to vote a loan of 1,500,000,000 francs (about $90,000,000) to Czecho-Slovakia, Rumania, Yugo-Slavia (formerly the Little Entente) and to Poland.

The despatch from Paris, announcing this news, commented thus:

"It should be understood it is not a question of money being sent out of France but of credits to be expended in this country, in all probability largely for military equipment, since the French are anxious to see the new Polish Army, which will number half a million, well equipped."

U. S. critics pointed out that France thus slaps Uncle Sam on both cheeks. Once by openly bolstering up militarism in defiance of the oft-repeated principles of the U. S. Once by giving credit in terms of actual wealth when she owes the U. S. $3,917,325,975 " about which she apparently proposes to do nothing." It must also be remembered that France is faced with two important problems: 1) raising more money for the Ruhr; 2) paying interest on her debts.

These hostile critics assert that France is following King Edward VII's policy of the encirclement of Germany, but with different intent. Another manifestation is in Central Europe, where the abnormal strengthening of the Little Entente is likely to have derogatory effects upon the loan now under way for Hungary.