The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-01-08
BRITAIN SEEKS
GRACE 0Nl0AN.
English Emissary Will Ask U. S.
To Defer War Debt Payment
Twenty Years.


Lord Chalmer, special representa-
tive of the British Excheauer, Is ex-
pected TO arrive in Washington In
few DAYS to continue and consum-
mate, negotiations for refunding the
war loans of the United States 10
Great Britain.
OWES x5.OOO.OOO.OOO-
IL was stated in official circles to-
. day that already the two govern
ments are in accord upon the funds-
mental proposals and that IL shouid DC
n simple matter to arrive at an agree
mcnt upon such important details as
remain 10 be determined, says D.
Fred Essary, In "A copyright uispa'ch
to The Baltimore sun
As outlined by Treasury officials
the general understanding provides
for funding the demand notes OF inns
Government held by Great Britain
approximating s5,OO0.OO0000 into
long term securities at an interest
rate certainly not less than that
being paid by this Government on
money which 1t borrowed FOR the
purpose of loaning II to the BRUSH.
The most important details to be
arranged at the conferences when
will take place between Lord Chal-
mers, on the one hand, and Secretary
Houston and his. advisers, on the
other, are the maturity. dates on the
obligations to be given and the IN
terest rate, -'''
The British are inclined to stand for
far distant date of maturity. They
would like these obligations TO DC
for not less than twenty-years ana
if agreeable to the United states Tor
twenty-five years.
Little difficulty, ii was explained
today, will be experienced in fixing
tho, rate of interest. This will be. in
the neighborhood of per cent. IT IL
said. The law makes 1t obligatory on
the part of the Treasury to fix rate
of interest as high as that being paid
on domestic war loans which runs
as high as AN per cent. Since this
Government sees no necessity of
making a profit on it's British loans,
the rate which will be proposed. will
not be much if any higher than the
domestic rate.
80 INTEREST IS OVERDUE.
so far, it appears, the Government
OF the United States has collected no
Of the other foreign loans and an
adjustment of this is another matter
which 1t will be necessary for the
negotiators to deal with at the Wash
ington conferences.
IT was stated in this connection to-
day that the United States Treasury
was ready to engage in similar nego-
tiafions with France, Italy. Belgium
and other European nations who bor-
rowed money from. America with
which. to prosecute the war. So far.
however, the matter has been taken
up only Informally with foreign
treasures.
Europe IS indebted to the United
states for slightly more than 10000
100000, approximately half OF which
the British owe this country. Great
Britain, it seems. holds temporary
obligations Of other allied powers for
probably as much money as she owes
the United States and before the Brit
ish government could go finally into
negotiations with the United States II
has been necessary for it to come to
at least tentative understanding
with it's debtors.
In this general connection it might
be stated that the recent agitation in
favor of the cancellation Of all the
foreign loans as an act of supergen-
erosity on the part of America has
subsidized.
Congress alone can act in that di-
rection. AS Secretary Houston has
pointed out, the Liberty bond acts
contemplate no such move on the part
of this Government.
s475,0oe.0OO IN INTEREST.
In other quarters it has been pro-
posed that the United States at least
cancel the interest on the foreign OBJ
legations. This, too, is matter
which Congress alone can deal with
The interest on the demand obliga-
tons now held by this Government. it
was indicated today, amounts to
about SAFE. 700. 900 a year.
One of the serious questions which
the Treasury has had to face was the
collection of this interest as the law
provides. 1t has been argued by some
authorities that the Government.
which is paying interest to it's own
people on the money loaned to for
cign countries should collect the in
terest due it as a matter of good bust
ness. On account of the rates on for
cigp exchange, however, 1t has been
difficult for this Government to arrive
alta basis for the interest payment
and 1t was felt by Treasury officials
that 1t would be better to await the
return of stable conditions before in
sistinE upon a collection of outstand-