The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1921-09-01
WOULD TREAT ALL
DEBTS AS WHOLE
British Want to Lump InteraIIied
War Indebtedness.
ASK GENERAL REIMBURSEMENT
Proposal Is Dramatically Opposed to
the Views OF Secretary Mellon
London's Attitude Is Caus-
ing Disquetng Effect.

Washington, Aug. 3O.--The British
government has informally advised the
United States that, when negotiations
for the payment Of its war debt are
resumed, it will insist upon general
REIMBURSEMENT of the inter-allied in
debtedness as the basis for a final
settlement, it was learned auth0ri-
tatively here.
According to information in official
quarters, Great Britain believes that
in liquidating the war loans, those
made by the United States to the al
lies and those made among themselves
should be treated as whole instead
of severally. Her idea, it is said, is
that it will facilitate the liquidation.
While the British government has
proposed no definite plan for handling
the war Indebtedness, the tentative
suggestion has been made that each
country issue uniform bonds to the
amount Of its obligations which would
afterward be exchanged among them
Opposes Melon Views.
The British attitude is having a dis
quieting effect in administration cir
cles. 1t is Numerically opposed to
that Of Secretary of the Treasury Mel
Ion and severe complications between
the two governments are in prospect
If she persists in her view.
Secretary Mellon believes that the
debts to this government should be
handled individually without reference
to obligations held by the allies be-
tween themselves. He also opposes
acceptance of obligations other than
those of the debtor country in repay
me2t in the case Of the larger nations
such as Great Britain, France and
Italy. As 20 the smaller governments
whose stapilicy is not 50 certain he
believes it might bS well to take even
German reparation bonds in settle
ment.
The government was officially noti-
fed Of Great Britains position a year
ago when negotiations which had been
under way in London for some time
were suddenly terminated. At that
time the British premier Lloyd
George wrote President Wilson that
his government could not proceed to
a settlement unless it was made part
and parcel on an all round arrange
ment Of inter-allied debts"
Lloyd Georges Argument.
AS the British premier put it the
inter-allied Indebtedness was the
'larger question" and the settlement
of the British debt to the United
States could not be allowed to "preju-
dice it." If this country could formu-
late a plan reconciling the two the
British government" he added
'would be glad to fall in with it."
The Treasury department refused
summary to entertain the proposal,
and the American negotiators were re-
called from London. When the ad-
mlnistratiOn changed hands and the
question of resuming negotiations was
again brought to the fore IL was
thought that Great Britain had al
tered her opinion on the subject. The
new administration has learned, how
ever, that it is still the same.
According to treasury officials the
advantages of the British plan from
their standpoint are obvious. They
point out that a large share of the
money she obtained from this country
was subsequently passed along in loans
TO her allies. They assert if she could
apply the securities she has taken for
these loans against her indebtedness
to the United States the Treasury
department would eventually have its
vaults stacked with the bonds of half
of the nations of the Old World,
whose ability to pay in many cases
is seriously doubted.
The same situation treasury OH
Gals declare, is true Of France and
to some extent Italy. Finally, they
assert, it would mean that all this
country would have to show for the
0OOOO000O it loaned abroad dur
ing the war would be The questiona-
bic securities Of a lot of small ma
tionalitles, to which the principal al
lies lent money, instead of their bonds,
whose value is unchalenged.