Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1921-07-07
MAY GRANT MORE
TIME TO NATIONS
FOREIGN NATIONS OWE UNITED
STATES GREAT SUMS IN PRIN-
CIPAL AND INTEREST.

countries. WHY don't they pay
up?" 1t was Jack talking to a
bunch of his schoolmates who were
gathered under big tree trying to
keep cool away from the beating rays
of the MONDAY sun.
at is easy enough" spoke up
Uncle Ted who had been cutting the
grass, "It is easy enough, say, to
talk about all this money and what
we think ought to be done but we
really have no right to unless we
study the situation little and learn
the truth"
TELL us something about it. Uncle
Ted" said Ruth. Anyway you
ought to rest from that heat"
"All right, Ruth, I'll rest from the
heat, but of course I mustn't rest
too much-at least must tell a
story. You are tease, Ruth. l
think the best way is to tell you what
President Harding did the other day
about this matter. He received
letter from the Secretary of Treas
ury on the subject and after going
into it carefully sent copy to Sen
ator Penrose, chairman of the Com
mittee on Finance of the United
States Senate, together with letter
of his own. In his letter, President
Harding stated that Secretary Mellon
had asked for broader powers to
deal with the situation so that he
could arrange for the refunding or
conversion or extension of the time
of payment of the principal and in
terest on these obligations, and the
adjustment of other claims of the
United States against foreign gov
ernments.'
"In Secretary Melons letter to
the President the first thing he stat
ed was the amount OF money due the
United States by foreign governments
on account of the European war.
Children, that total amount is s10.-
141,267,585.68! Just think of 1t?
That money was loaned in this way:
$9,435,225,329.24 was advanced to
these countries under the various
Liberty Loan acts. That is the
money raised by you and everybody
buying Liberty, Bonds. sS4,093,-
963.55 totals the obligations received
from the American Relief Admins
tration. The amounts due from the
sale of surplus war materials to Bel
GUM, Czechoslovakia, Esthonia, Let
via, France, Lithuania, Roumania,
Poland, Russia and the kingdom of
the Serbs, Croats and Slovenes total
$565,04S,413.80 and for grain sent
by the United States Grain Corpora
ton. to Armenia, Austria, Czecho-
slovakia, Hungary and Poland. the
debt is $56,S99, S79.Os.
Now, Riddles, you see the money
owed on the various classes of debts
is due largely from the same coun-
tries. When Secretary Mellon went
into the matter he found. as he
states:
"'This Department is without
authority to consent to any extension
of the time for the payment Of the
principal or of the interest Of these
obligations or to proceed with the
refunding.'
Later on in his letter he said:
In some cases the debtor nations
owe large amounts 20 other countries
as well as to the United States, and
it may be advisable, and in some
cases indeed necessary to consider
comprehensively the entire debt of
such countries financial condition
and resources, so as to work out a
refunding plan reasonably within the
ability of such country to carry out.
You see, Secretary Mellon is not
going into this matter as man who
is sorry for these countries, who feels
we should say oh! it's all right,
wen forget IT, Neither is he going
to say, You MUST pay at once with
out looking into the future to see
what the result will be. He is look
ing at it as successful business man
and banker--a man who has always
handled money matters with success
Doesn't he say Just what he
wants?" asked Jack.
Indeed he has said that. With
his letter to the President he sent a
draft of an act to Congress which
he wants to have passed and which
the President sent along to the SEN
ate committee with his letter The
act is short so think will read it
to you:
BE it enacted (etc.) that the
Secretary of the Treasury, with the
approval Of the President, is hereby
authorized from time to time to re-
fund or convert. and to extend the
time of payment of the principal and
interest or both. OF, any obligation
Of any foreign government now ow-
ing to the United States, or amy obli-
cation Of any foreign government
hereafter received by the United
States OF America arising out of
the European war. into. bonds or 9TH
er obligations OF such. or any other
foreign government and from time
to time to receive bonds and obli-
cations of any foreign government in
substitution for those now and here
after held by the UniSed States, in