The New York herald., 1921-06-24
TO give MELLON ALL
POWER in us. LOANS
Bill Sponsored by Harding
and PenrOse introduced
in Senate.
WILL AID REFUNDING
Plan Expected to Help Re-
store Confidence and
Settle Unrest.
DEBTOR NATIONS BENEFIT
War Sums Due America From
Other Countries Total
$10,141,267,585.
DEBTOR NATIONS BENEFIT

WASHINGTON, June 23-Broader au-
thority for the Treasury Department
is Essential to the Administrations
plans for refunding foreign loans. Sec
retary Mellon declared in letter to
President Harding transmitting a
draft bill granting the desired powers
The bill was forwarded to Chairman
Penrose of the Senate Finance Com
mittee, and Chairman Fordney Of the
House Ways and Means Committee by
President Harding and Immediately In
troduced In the Senate by Senator
Penrose. 1t would confer blanket au-
thority on the Treasury, with approval
of the President, to reconvert or ex-
tend loans and interest payments, to
accept foreign securities and to settle
claims not now secured.
Mr.. Harding wrota to the two cnair-
men that "all the circumstances sug-
gest the grant of broad powers to the
Secretary of the Treasury to handle
this problem in such a manner as best
to protect the interests Of our Govern
ment''
II hope your committee ind Con-
gress." the Presidents letter continued,
will find it consistent promptly to
sanction such an act as that which IS
suggested in the enclosed draft. If the
Congress will promptly sanction such
grant Of authority the Secretary of the
Treasury may proceed to the prompt ex-.
ercise of the powers granted to him. and
we reasonably may expect a satisfac-
tory handling of the obligations due
and the claims of our Government
which are awaiting settlement
Mellon to Explain Plan.
Senator Penrose announced that the
Senate Finance Committee would begin
hearings on the bill next Wednesday
with Secretary Mellon and his staff as
witnesses.
1T is a good bill." he added. land
VIII remove misunderstanding and mis-
apprehension. 1t will go a long wa:y
toward restoring confidence and settling
Unrest"
Secretary Mellon prefaoad his letter to
the President with n table summarizing
the war debts Of foreign governments to
the United States as follows::
Obligations for advances made under
the various Liberty bond acts, $9,435,-
225,329.24; obligations received from the
American relief administration, $84,O93,-
$685. obligations received from the
Secretary Of War and from the Secretary
OF the Navy on account Of the sale of
surplus war materials, $685., ,O4S, 1850;
obligations held by the United States
Grain Corporation, $56.899. $1,000; total.
$10141,267.5S5.68.
From this statement" said Secretary
xrrf1l t.o
obligations in respect to loans from the
proceeds Of Liberty bonds are all de-
mand or overdue obligations, while the
other classes referred to mature at vari-
Gus dates. beginning June 80, 1921, and
extending to August 1. 1929. The obliga-
tions mentioned as held by the United
states Grain Corporation were received
by that corporation from foreign Govern
ments on account of the sale of flour un-
der the act of March 80. 1920. As they
may at any time be turned into the
United States Treasury. and some of
them mature on June 80 next, they are
included here SO that they may be dealt
with along with other like obligations.
Il am advised" continued Mr. Mellon.
that, except as to the advances made
out Of the proceeds OF Liberty loan
bonds. this department is without au-
thority to consent to any extension Of
the time for payment of the principal
or OF the interest Of these obligations or
to proceed with the refunding thereof
AS to the advances made out Of the
proceeds of Liberty loan bonds, the
existing authority contains such diverse
provisions as 20 interest rates. the ma
turity and other terms of the refunding
bonds that may be accepted by the de-
partment as to make 1t difficult to for
mulate plan whereby the interest of
this Government may be as we'll pro-
tected and the bonds to be received be
In as desirable form as would be the
case II the entire debt of each country
could be dealt with as a whole and free
from such restrictions.
'In some cases the debtor nations owe
large amounts to other countries as well
as to the United States. and It may be
advisable. and in some cases indeed nee
essary. to consider comprehensively the
entire debt of such country. its finan-
cial condition and resources so as to
work out a refunding plan reasonably
within the ability of such country IN