Every evening, Wilmington daily commercial., 1921-02-05
TO ANNUL
DEBT Of ALLIES WAS
REJECTED BY j. S.
British Chancellor Says to Renew
Negotiations Now Would be
Undignitied.
NO ADVANTAGE WAS SOUGHT

BY Associated Press to Every Evening.
Washingfon Feb. 5.-A letter from
Secretary Houston Of the Treasury De
partment saying he would not. during
the remainder of his term of office. pro
ceed with any further financial negO-
tiations with foreign governments. was
read in the Senate today by Senator
Lodge. of Massachusetts. the Republi-
can leader.
The Secretary said there have not
been any official appeals on the subject
that would I'm any way bind this govern
nent or the foreign governments other
than the agreement Of the foreign gov
ernments contained in their demand
obligations held by the United states to
give long time obligations II requested
in exchange therefor"
Birmingham. England, Feb. 5.--The
British Government formally proposed
a cancellation of all interailied dabts.
but the proposals were unacceptable
to the American Government. said ].
Austen Chamberlain. Chancellor Of the
EXchequer in a speech TO his consttu-
entH here yesterday.
To make them again would be. l
think" Mir. Chamberlain continued, be
Z
| us liable to a fnisconception OF our
motive.
In making them" said Mr. Cham
berlain. we sought no national ad-
vantage for ourselves. We proposed a
solution in which we should have fore
gone claims larger than any remitted
TO US. and We proposed il because We
believed it would be in the interest Of
good relations among peoples. the re-
habilitation Of national credit and the
restoration ~ international trade
Our great International debt is due
i 10 the obligations we understood on
behalf Of our allies. II we had had
! only ourselves to consider we should
| have been particularly free Of external
! dtbt AZ the present time"
Mr.. Chamberlain prefaced his remarks
! by saying that he would have preferred
at the close Of the war that the whole
i interallied debt had been wiped out, 20
/ az To start with a clean slate There
was no proposal for a settlement of the
international debt among the Allied and
Associated Powers. whether for a total
or partial remission. which the British
| Government would not have been pre-
pared to be party to. he declared.
Washington, Feb. Nicholas kel-
ley. Assistant Secretary of the Trea-
| sury. in charge OF foreign loans. re
fused &c CONNER en- the statement Of
Chancellor Of the Exchequer Chamber
lain on Inter Allied debts. He would
| neither confirm or deny the declaration
that Great Britain had formally pro-
posed cancellation. 10 other Trea-
sury official would discuss il.
report Just out. had this 70 say on
these debts.
The Indebtedness incurred by the
United States TO make the foreign loans
is not cared for by the sinking fund
Congress contemplated that foreign re
payments would provide for that part
OF our debt. OF late there has been nC
little discussion as to how this foreign
debt should be treated. Some advanc,
the proposal that il should be cancelled
This is a favorite plan OF some Euro
peanS and some Americans. The sug.
gestion IS based first on one GROUND
and then on another. At one time It :.
| based on sentiment or on consideration.
OF generosity. BY some IL is based OF
the contention that it will promot.
peace.
1t apparently is assumed that an
tagonisIns will be set up if the nations
OF Europe are asked to repay the loan,
which they sought and so gladly re
ceived. At another time il is based OF
consideration for present producing in
forests. Voices are heard representing
that ii will ruin the trade of Americ,
if Europe is to send US her commodities
for what she owes us APPARENT,
these advocates contend that inter
national trade will be profitable pro
vided only We give TO the world wha
We produce declining to receive an,
! commodities in return. imagint
neither of these suggestions Will be re
ceived with favor BY the American tax
payers