New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-06-25
Rill to Refund
War Loans Hits
snag il, Senate
FAC Broad, Smoot Says, and
Mcclellan Believes 1t
Would BE Trading 10
Billions for Bad Debts
amazed at President
cou,mittee Wos,'t Report
Measure Until Mellon
Has Revealed His Plans
=, The T,-ibuue's Washington Bareaa

49,. The T,.ibsse's Washington Bureau
WASHINGTON, June 24.--The PEN
=. hill. introduced in the Senate at
~ request of President Harding and
s.eretary Mellon, and intended to give
i. Secretary of the Treasury sweep
- authority to refund the $4,000
an, 400 foreign obligations, stirred up
rigorous opposition among Senators
tsday.
! Senator's Ashurst, Mcclellan, Reed and
HAHN, Democrats, expressed antagon-
ism to the measure, and Senator Smoot,
,,s Of the Republican leaders on the
finance Committee, said he thought it
xss too broad. He> said the Finance
Committee would not report the bill
Sithout having Secretary Mallon before
ltand finding out exactly what he pur-
posed to DO.
The opposition voiced on the floor,
illus the opposition which is known to
exist, is such that it will in all proba-
hility be found impossible to pass the
bill unless it is modified and restricted.
Senator Mcclellan, of Tennessee, as
serted that under the bill the Secre-
sary Of the Treasury would have the
authority to exchange the bonds of the
Allies for the bonds of Germany, Aus
tia and Turkey. Germany, he said. is
issuing bonds to the Allies almost
daily, and they were worth about 20
cents ON the dollar. He said he had
heard that the President approved such
splan, but he could not believe it.
Pointing out that the bill gave the
Secretary Of the Treasury power to
change the interest rate on the foreign
bonds, Senator Mcclellan asked: Glow
could any governm emit official seek to
lover the interest rate? Is it possible
hat any one could say we ought to lend
money to foreign governments at a less
rate than we pay for money borrowed
from our own people ?"
Smoot Opposes Bill
frankly" said Senator Smoot az
tninS THIS Dill gives the Secretary of
the treasury too much authority"
Taking up the provisions of the bill
empowering the Secretary of the Treas
aFy 70 SUBSTITUTE bonds of one country
iOr those OF another, Senator Mcclellan
said:
TO come in here and ask authority
% SUBSTITUTE these good debts for the
worthless debts of Germany. Austris
and Turkey is indefensible."
he said he believed this was the pur,
pose back of the bill and that other.
wise the authority would not be asked
Inc result would be in the end thai
we would pay $4,000 900 900 of the Ger,
man indemnify said Senator Mcclellan
We would be swapping good bonds for
the bonds of these countries"
Senator Smoot did not believe the
Secretary Of the Treasury planned to
make any such exchange of securities.
Il cannot imagine man even in an
insane asylum wanting to do that" he
added, "but even if any one tried to
DO that, steps could be taken by Con-
gress at once TO stop it."
Senator Fletcher, of Florida, pointe d
out that the matter might go to such
a point before Congress acted that il
could not stop it.
Assailed Republicans
Senator Mcclellan maintained that a
Congress "servile enough to pass such
bill would not stop the Secretary
from any action he might see fit to
take. Il want to protest with all the
earnestness of which I am capable
against this BILL" he said.
Assailing the Republicans for failure
70 economic Senator Mcclellan said the
expenditures should be kept to $780,
vuoo00 year, and if the interest on
tne foreign debt We're paid, as it should
ae, the expenditures would be held
down to $9,000,0o0,00O annually.
:, Senator Ashurst, of Arizona, opened
the argument against the Penrose bill
i stand firmly against any policy
ne said, which will give any one the
authority indefinitely to delay and de-
ier the payment of interest on the for
elgn loans. 1t is time for Europe to
stand on her own feet"
Mr.. Ashurst suggested that if Ell
rope reduced ornaments she would be
abe to pay more quickly.
IT'S time for Europe to liquidate