The Washington herald., 1921-01-29
SCHEME TOSHIFT
GERMAN DEBT TO
US. OPPOSED
transfer of Ten Billions
In Obligations Being
Urged Abroad.
FROWNED ON HERE
hOuse Leaders Contend That
America Did Her Share
In War.

Transfer to Germany of the ap-
proximately $4,000. 900, 900 war debt
wed the United States by the allies
mas been Informally suggested TO
Ihls government l. was learned
rom high government official
yeste rday
The Overtures were made by in
u''iduals in Europe, rather than in
lhe form of an official request from
European governments 1t is known
and admitted here. however. that
such an arrangement would be
lshly acceptable to Great Britain
nd France particularly
Ihe suggestions reaching this
government are that German notes
accepted by the allies in payment
OF Germany's indemnity be indOrsed
by the European powers and turned
over TO the United States.
Under this plan, Great Britain.
france and the other allied nations
would not only wipe out their tre-
mendoUs debt to this government,
on winch they confess they cannot
lay the interest at this time but
they would Immediately realize on
the German indemnity.
PlsnS to Float Notes Here
Information on the proposal to
shift the allied debt to German was
OBTAINED yesterday after the, atten-
hOn OF Ot1cials was called to a dis
patch from Paris revealing a re-
ported plan to float a vast quantity
"t German indemnity notes in this
country.
Comment in official and Congress
sional circles made ii certain that
hgIther proposition will meet with
IdEor. The view universally was
mat these proposals are nothing
less than new efforts to unload
more cost OF the war on the United
states The whole allied debt prob
lem will be left over to the Harding
administration, and it is regarded
as beyond the range of possibility
mat any effort to transfer the $40
VoV,OOOOOO obligations to Germany
will be entertained.
II is pointed out that either plan
ould bring about further imitation
OI credits and depreciate the value
ol Liberty and Victory bonds and
all other negotiable securities in
America. The plan to float great
quantities Of German indemnity
notes bearing s per cent interest.
ID was generally agreed, would in
crease interest rates on all loans
here Moreover. such German Sc
rurities would be of doubtful value.
COngressmen Are Opposed.
u am absolutely opposed to that
sort Of thing" said Representative
Bdcharach, Republican. Of New Jer-
sey. member of the Ways and
Means Committee.
While | don't feel We ought to
d" anything to embarrass the ma
tIon with whom we were associated
in the war. they should be made to
feel thar We made great sacrifices
and the people stiIl are suffering.
our poorer people have been obliged
10 dispose OF their Liberty bonds be-
low par to live.
Europe must not expect us to
always b. charitable in everything.
This ; a business proposition"
''Th- effect OF floating German
bonds underwritten by the allies at
8 per cent would be probIema tical."
said Representative Gerner Of Tex
as Democratic member Of the
Ways and Means Committee. 1t
would seem certain to increase the
rates Of interest charged here. de-
rreciate our bonds and. as whole.
not beneficial to our people.
"I think We have assumed our
full share OF the financial response
hiIity Of the war"