Arizona republican., 1919-02-23
BILL CONTINUES f FORE|GN CREDIT F FOR EQU|PMEN NJ
Loan Sinking Fund Provid- ed-Also Finance Corpor- ation - Would Stabilize Price Of Bonds-Denial Is Made That French Loans To Be Cancelled.

WASHINGTON. Feb. 22-Liberty loan legislation reported to the house late today by the ways and means committee, provides for the establish- ment of a sinking fund for the retire ment of government war bonds within 25 years; continues the war finance corporation so it may aid American eX- port commerce; permits further loans for the sale to foreign governments of equipment sent abroad by the United States for war purposes, and carries provisions designated to stabilize the price of past issues of bonds.
 Chairman Kitchin of the committee announced that a report on the meas ure would be filed Monday and that he planned to call the bill before the house for consideration late Tuesday, after passage of the sundry civil appropria tion bill
 Quick disposal of the measure is planned by administration leaders, for on it's passage largely depends the date of a special session. Failure of the senate to pass the bill before ad- journment March 4, MT. Kitchin said. probably would mean an extra session by April l. Should the bill be passed at this session, he said he did not be- heve it would be necessary for con gress to meet until about May l5.
 Deny Forgivine of Loans
 The present record of executive hearings by the committed on the leg islation, made public with the intro- duction of the measure, contained of ficial denial that the allies expected the United States to forgive debts result ing from loans advanced during the 1 war.
 i officials of foreign governments i have always expressed the intention Of their governments to pay the indebted ness, and have said that they had 1fo intention of doing anything else" Al bert Rathbone, assistant secretary of the treasury, in charge of it's foreign ! loan bureau, told the committee, when asked about the loans that approXi- mate .$S,500, 100000.
 Tt is true" he continued. there i have been one or two suggest: :ons made here by statesmen, not holding any public office, that the debts should be forgiven
 In this connection Mir. Rathbone pre- sented two letters from the French high commission officially denying that President Wilson had been approached by officials with a view to having the
 United States share the war sxpendi- lures of the entente from the beginning of the war.
 "The prime minister has cabled an order to deny most emphatically that such a suggestion has ever been made to President Wilson by any French of fieial," declared one of the letters,
 while the other explained a resolution
 introduced in the French chamber of deputies, for the establishment of an 1, international financial union among the
 allies, to distribute the war expenses among the nations on d basis of popu-
 latlon and the power to contribute
 financial support.
 U. s. Not to Share Cost The French government" the, let ter said. has nothing whatever to do . with the project and is not giving it's
 support to the resolution"
 Mr. Iiathbone said there was nothing on record in the treasury suggesting , cancellation of the obligations and he aCded:
 All the statements made by repre- ! sentauves of the foreign governments -l have in mind particularly the :. British-have been to the effect that It would be unthinkable that their gov ernments should not pay their debts; they say they do not want charity; that
 that they have borrowed the money. : and intend to pay'
 No change in direct legislation re gardinS the next Liberty loan was e made by the committee in final consid- C eration of the measure
 ! The sinking fund is provided by di- 0 rect appropriation from the treasury ' ot "A per cent of the aggregate amount
 ot Liberty bonds and notes that will be e outstanding on July 1. 1920. The . amount the committee said. was ex- r pected to be $1S,000 COG. .000, so that the t 1rst year the contribution to the fund
 would be $450,O00, 900, with that in the : future dependent on the rapidity of n retirement
 Loans for export trade by the war
 finance corporation, under the terms of
 the bill may be for a period of five
 years, but no loans to American ex-
 porters are permitted, if private capi-
 taI IS available, and the interest rate
 ot such advances is fixed at not less than 1 per cent
 M Limited to Billion These loans, limited to s1 900 Ooo ! 900, may be made within one year afte,
 the proclamation of peace by the presj
 dent but at the end of that time the
 corporation is directed to begin it. 1T liquidation.
 Opposition to the continuance of th,
 WI poie ieib4oli NdS NOlceO ln the commit ,f tee by Representatives Moore of Penn IT savanna and Sloan of Nebraska. an, o they are expected to carry their figb ,s to the floor of the house. a The bill limits the total of futur
 loans to foreign governments to th, l. unloaned portion of S10000. .0O0. 900 ore
 Vlously authorized, and permits suc]
 loans to be made only for IS month If alter the presidents peace proclama al tlon Members of the committee ex st planned that this provision was in m serted to enable the United States f. ' sell equipment sent overseas before th ,s cessation of hostilities. such as rail il road rolling stock, to the allied gov il ernments. The provision. it was saio er also IS expected to aid in the market g Ing or American wheat abroad. il
 such manner as to lessen as muc ,- as possible the loss to the governmen l. under the guaranteed price. e. The committee adopted the recon le mendation of Secretary Glass to re m open the privilege of converting f ne IT ceRt bonds into bonds bearing AZ ne f. cent interest. The secretary an le thorized to extend the priyilege fo n, such period as he may consider ad e- visable.