The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1921-08-05
0. KS FUNDING
OF ALLIED DEBT
Senate Committee Approves
Harding Plan for Dealing
With Allies.
MELLON MAKES STATEMENT
Administration Bill Carries an Amend
mcnt Requiring That Funding Be
Completed Within Five Years
v. S. Not Committed.

Washington, July 30.-Favorable re-
port on the administration bill giving
the treasury blanket authority to con-
duct negotiations for the funding Of
the allied debts, was ordered by the
senate finance committee. 1t carries
committee amendment requiring that
the funding be completed within five
years.
Secretary Mellon formally advised
the senate finance committee. in .eply
10 committee inquiry as to his views
regarding the extent TO which the
United States had been committed
under the Wilson administration on
deferment OF payments of allied war
loans and interest.
The government was committed, he
said, to postponement Of interest pay
ments for two or three years. and sub
sequent spreading out of postponed
payments. contingent upon such for
eign governments carrying out with
reasonable promptness, after this gov
| eminent is ready 10 proceed. a salts
factory funding of its existing short
time obligations to this country"
Mr.. Mellon added that he did not
think any obligation had been imposed
on the government through negotia-
tons In London between Mr.. Rath-
bone of the treasury and "A British Of
fetal. frequently discussed in finance
committee hearings.
The secretary's communication was
I'm the form of letter 10 Chairman
Renrose and was presented personally
I'm connection with Mr. MELONS fur
ther argument i'm favor of prompt pas
sage of the administration bill pro-
viding blanket powers for the treas
ury in dealing with allied loans
$50 far as concerns the principal
debtor powers" the letter said (which
together owe us. (without accrued in
teresD over $4,000, 100000, there is no
intention or thought Of accepting in
payment bonds other than those of the
debtor country. No authority now
asked. however. covers debts owing to
us by Czecho-Slovakia. Greece. Rou-
mania, Serbia. Poland and a large
number of other countries
: These countries also owe large
amounts 10 the other countries. Their
resources and their ability TO pay
differ widely and the conditions which
will have to he dealt with cannot now
! be foreseen. The situation which on
] fronts the treasury is exceedingly eom-
pick and to deal properly with 1t the
! treasury must have ample powers
Regarding acceptance of German
bonds. the secretary referred TO GER
tain negotiations at the Paris peace
conference, where representatives Of
| Great Britain. France and the United
States recommended the acceptance Of
German reparatiOn bonds In payment
of loans made by the three countries
to Belgium prior to November IL.
: 1913. This agreement has been before
/ the senate since February 22. 1921.
and no action has been taken on ii, he
said. but he was unable to decide
whether subsequent negotiations In
fixing Germany's indemnity and the
/ German bonds to be taken would
iuuht tiitl ~ iVl WI
sideration
In explaining his memorandum TO
! the committee. Mr. Mellon said he
would. If granted the authority asked,
obtain from each debtor nation a
statement embOdying its offer in set
Element He suggested that ii might
be possible 10 provide i'm the subse-
quent negotiations for the payment of
the deferred interest and the payment
! Of interest upon interest by increasing
interest rates Of the bonds to be is
sued by the debtor country in subSti-
/ tuition for the securities now held.
This plan, the secretary said, met with
the approval of the President and the
increased interest rate would probably
facilitate the marketing OF the bonds.