The Washington times., 1921-01-12
BRITISH DEBT NOW
HARDING Problem
New Administration Facing
Adjustment of Flve-BlIIion
War Loan.
Continued from First Page)

Nonunued from flrst IasS'|
America, with later reports that the
British program had been changed
Delay In Chalmers arrival gives
surprising turn to the debt problem
and leaves TO officials much to specu-
late about as to the real reason De-
hind the British governments change
of front.
Ten days ago, Britain's representa-
yves ewere eager for quick ADJUST
ment of the terms OF the longtime
obligations. which the Treasury eN'
pressed a Willingness to arrange. Or
ncial word to the Treasury from Lon
don. that Lord Chalmers soon would
be en- route. TO negotiate the deal
rnally, was accepted as indicating
England would procede without de-
lay.
From reliable sources today II was
learned that Lord Chalmers plan 10
appear in Washington within a short
period. was modified when London
cables brought word from the United
states that members of Congress and
others conspicuous in public life had
denounced the proposal to permit
England to finally conclude longtime
arrangements for paying the ueDt'
just on the eve OF another admins
tration. IL is not doubted In we'll
Informed quarters that this may nave
influenced modification in Lord
Chalmers program.
FACE LONG DISCUSSION.
Whatever may have delayed the
plan, II was accepted today among
officials as probable that the whole
controversy will be one OF major pro-
portions almost at the beginning or
the next Presidents term. Long dls-
cussions likely to grow out OF the
conference. and the probabilit" that
the program eventually will necessi-
tate further interchange OF views
with London. made II appear certain
that the Treasury would be unable 10
b ring the discussions to the stage o.
agreement within several weeks. AS
the schedule now stands, the parleys
will not get well under way before
the middle Of February, and unfore-
seen events may cause further delay
in this tentative program.
Although the Treasury Is confident
the debt settlement terms are fully
warranted by factors in the interna-
tional exchange situation. and the
long maturities amply authorized by
the Liberty loan act. much conjecture
exists over the attitude which the
Harding cabinet may assume. Inc
next administration. committed 10
rigid economy all the way. and the
need for lifting some of the tax bur
den upon the American people, may
fight stubbornly any foreign pro-
posai to unnduly lengthen debt l'aoil,
ity which might be earlier curtaiied
vastly to the benefit of American tax
PAYERS, according to the official view
EXPRESSED in and out OF Congress TO-
day.
OPPOSE EXTENSION. .
While the British government mas
1t possible and CONVENIENT to release
billions of dollars In credit to her own
commercial Adventures in all parts
Of the old world. members OF CON
gress at both ends OF the Capitol in
sist the next administration should
resist any attempt from that source,
or other allied sources, TO spread
across the future. ranging from TWEEN
~ to thirty years. the obligation
which is fast running into bigger to-
tails.
The Harding Cabinet, II II has final
sanction in the matter. probably VIII
find strong support in all parts or
Government, in its inslstence mat
England soon should at least begin
meeting interest payments. Interest
on the British debt alone is S.ooooo'-
600 a year. 1t is easy TO imagine inc
ultimate size Of the British debt Of
ficials admit. IL the interest is allow
ed to be deferred indefinitely from
year TO year. and become part OF the
principal debt, to be paid eventually.
Failure Of Britain to pay either on
the principal or interest for twenty
years would run the total debt az the
expiration OF that time UP to more
than $4,000, 100000.
The terms fixed for adjustment or
the British debt probably will govern
the debts Of other allied debtors
What now stands as $4,000, OOOooo
debt owing by Europe might easily
reach $4,000, 900, 900. IL il were pos
sible to bind the United states to any
agreement dsferring both principal
and interest for twenty years.