Iti confessing that he could not get on without further
loans or _credit transactions this year, M. Caillaux said that the service of the principal loan would be provided for by such reparations as could reasonably be expected from Germany, and Treasury credit was again to be drawn upon. As the main loan is for the reconstruction of the devastated districts, M. Caillaux's meaning is that reparations shall be devoted to these districts. That is certainly a great improvement upon the old plan of borrowing at large for the purpose. Another very good sign from the point of view of restoring the national credit is that M. Caillaux proposes to begin to repay France's debts to her Allies. No doubt he will be bitterly attacked for his proposal to use part of the German reparations to repay the Allies. Such a pro- posal would have been quite impossible under M. Poineare. But we accept the signs with hope and thankfulness. If M. Caillaux can do what he says, nobody will benefit more than France herself.
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