The New York herald., 1921-08-21
BILL TO FUND ALLY
DEBT Is REPORTED
Senate Committee Favors
Broadcast Powers for Sec
retary of Treasury.

WASHINGTON, Aug. 20.-The Admin
istration's bill for funding the allied
debts was reported to the Senate to-day
by the Finance Committee with ma
jority recommendation for its passage
so that the Secretary of the Treasury
may have broad powers in adjusting the
questions at issue. An amendment re-
quiring the funding to be completed
within five years was added by the
majority.
The freedom and broad powers with
which the majority said the Secretary
should be endowed. however. was at
tackled by Senator La Toilette. Republi-
can (Wis.) and five Democratic mem
bers of the committee, who declared In a
minority statement that this constituted
basis sufficient for rejection of the
measure. The Secretary. they contended.
has now sufficient authority to negotiate
the settlements and they suggested that
the obligations of the foreign Govern
ments be neld in their present form "un-
til our Government shall have sufficiently
crystallized its policy to know exactly
to what use they best be put"
The best and most practicable method
of handling the questions is afforded
BY the measure, the majority report de-
clared. adding that 1t was necessary for
some one to be authorized 10 deal
promptly with the situation. Assurance
was given that the Secretary of the
Treasury does not intend "a accept
obligations other than those of the
DEBTOR country, in the case of the prin-
clpal debtor countries, and that lit is
not his intention to accept any Ger
man bonds unless it becomes neces-
sary OF desirable to do so in some now
unforeseen special cases."
The minority report said the foreign
obligations accepted should bear the
same rate of interest that the American
Government paid to raise the money
loaned. and opposed the exchange of the
obligations for those of countries other
the original debtors. The bill. it con-
tinued, would permit the Secretary Ito
make any bargain he wants to make"
and become the actual dictator of the
disposition OF eleven billions Of dollars,
with Congress having abdcated con-
troi."
The allied debt is covered by obiiga-
tions to the amount of $10,141, 267, ,5S5,
which the Treasury now holds, and in
terest accrued and unpaid amounting to
$943,534,755, according to the majority
report, which stated the Government had
been paid on the obligations $465. .271 .688.
The minority report, filed by Senator
La Toilette and signed also by five
Democratic members of the committee.
declared that the inevitable result of the
granting of such authority would be to
weaken the hands of the Treasury head
and subject him to the threats, cajolery
and international intrigue of trained ne
Sotiators
mo man has ever lived" II continued.
who should be entrusted with such a
gigantic responsibility.
The purpose Of the bill is described
as Ito give the Secretary of the Treas
ury, with the approval of the President.
ample power to enable him. when the
condition of each debtor country shall
have been definitely ascertained and the
claims OF all parties interested shall
have been presented, to deal with the
situation promptly and broadly In such
a way as will, in his Judgment, best
protect the interests of the United
States and secure the payment of the
principal and interest Of the debts now
owing to It."
The report declared IL was not the
purpose or Secretary Mellon ITO accept
any German bonds unless II becomes
necessary or desirable to do so in some
now unforeseen special cases"