The Washington herald., 1921-07-22
MELLON DECLINES
TeCIVE PROMISE
dNFUNDINGPLAN
Senators Seek Statement
On Advances Made
: During War.
WILL REPORT LATER
Treasury Head Promises to
Collect Every Cent
Owing u. S.

Confederation Of proposed legis-
IstiOns granting Secretary of the
Treasafy Mellon unlimited author
ity toa liquidate the allied war
debts 70 this country. which now
amount to nearly $ll.Ooo.0oo.ooo,
was sbruptIy halted yesterday by
the senate Finance Committee.
IL wslI not be resumed. it was an
nouncs q. until Secretary Mellon has
infornsed the committee TO what ex-
tent u considers himself bound by
the negotiations for the refunding
Of the indie ebtedness conducted un-
der the Wilson administration.
According to disclosures at We'd
nesday,s hearing, these negotia-
tions, which at one time were at the
point, Of consummation. contem-
plated a plan for spreading the re-
funding over a period Of twenty-five
years or longer.
F VIII study Plan.
The adjournment followed per-
sistent and futile efforts to induce
secretary Mellon 10 diyulge his
opinion Of the efficiency Of this ar
ranasment, or what new plan, II
any he may have in mind for liq-
uidating the indebtedness. Mem
hers of the committee have devoted
DAYS 10 this task.
Although the Secretary admitted
at wednesdays session that he
might be normally obligated" to
carry out the negotiations OF his
predecessor, Secretary Houston, in
regard to the loans, when he reap
peared yesterday he gracefully
avoided the direct question OF
whether he considered himself
bound to the refunding agreement
as revealed Wednesday.
Il can't say the Secretary re-
sponded. II would not be able TO
give a decision until l have care
fully studied the whole matter.
Asked to study Plan.
His response led to a moti"~ by
Senator Reed, of Missouri, instruct
ing. him to make a complete study
Of all previous negotiations with
foreign governments in respect 10
thefloans, and report back to the
committee whether he thinks he is
obligated to go through with them
senator Watson. Of Indiana, called
for an executive session on the mo-
iion. Behind closed doors the COM
mittee agreed that it was useless
to proceed without the information
sought in the Reed motion
Thinks Plan Cumbersome.
Though Secretary Mellon was un-
able 70 say definitely whether he
considered himself obliged to carry
il out, he informed the committee
that he regarded the tentative
agreehnent worked out by American
and. British treasury officials last
year las cumbersome
1T would give US a lot OF dif-
ferent kinds of obligations, the sec
retary explained. 1T would pc
much better to have them all OF
ono denomination. My idea OF the
best plan would be to exchange the
nre.ant obligations. which are moth
inggnore than I. o. US, for a uni
form, obligation covering the many
separate loans and items in the
sarTe way and one the same terms
Thai would make the collection
easter.
May Waive Interest.
Il am not anxious for the re-
sponsIbility Of phese negotiations:
he stated. Il YnpIy considered 1t
nv duty to GO ahead and get the
hest terms / could. II somebody
else can do it better-if you can
naras a commission OF somebody
wo IA be perfectly satisfied"
The secretary declared that the
Treasury had reached no decision
regarding the payment Of the in
terest on the interest" which has
been allowed to accumulate until IL
now totals approximately $1,000
600 900. He intimated, however. that
the.eovernment in agreeing to post
pors the collection of interest for
three years until the refunding ne
.ottations were completed. might
have obligated itself to waive IN
tefeS. charges on the deferred In
tCrest.
Wants some Payment.
Exception to the view was taken
by Senator La Toilette. Of Wis
consin.
"fhis country" he said, has been
deprived for a long time of the use
Of this money represented by the
deferred interest. My opinion is
that our foreign debtors ought to
pay1s something for the privilege Of
lefSrring their interest for three
years. The interest on this deferred