The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-07-05
SENATE STILL
SUSPICIOUS OF
ALLIED TRICK
Opposition to Request for Leg
islation Authorizing Mellon
to Deal with Obligations
Hangover from Scrap.
NOT TO CANCEL DEBTS
BY MARK SULLIVAN

WASHINGTON, D. c., July 5.-The
senates opposition to President Hard |
ing's request to give Secretary of the
Treasury Mellon power to handle for
eign debts due US according to his
judgment, is essentially a hang over
from the atmosphere Of the League Of
Nations fight.
During that prolonged year of de-
bate the senate became very SUSPECT
Gus of foreign statesmen. This sus-
picion extended not only to the Repub-
lican senators but to the majority of
the Democratic senators as well.
Many of these Democratic senators
who supported the League of Nations
as a party measure nevertheless were
full of suspicion that President Wilson
had been subjected at Paris to pro-
cesses of sleight of hand
Senate impression
The senate got, and still holds, the
idea that any American statesman
dealing with European statesmen is in
the position of a countryman come to
town. Many of the senators think
that by some process of Juggling some
of the nations who owe US these bill
ions and are capable of paying them,
are going to evade paying them.
The senate wants everything that is
TO be done about those foreign debts
TO be subject to their scrutiny. OF
course, Secretary Mellon is as insist
ent as the senate that these debts
shall be paid.
The difference between Secretary
Mellon and the senate is that he is in
better position to know just how and
when 10 press for payment than the
senate possibly can be. He has had
more experience than the senate in
distinguishing between those debtors
who can pay with reasonable prompt
ness and those who must be carried
along for a time. This is exactly the
sort OF thing that Secretary Mellon
has been doing for the 40 or so years
of his experience as a professional
banker. He has sat in his Office in
Pittsburgh for a life time dealing with
difficult debtors and the general ver-
dict on his experience is that he has
been rather more successful than the
average in collecting everything that
was due him.
To Collect All Debts.
The Secretary Mellon has no idea
Of forgiving any of those foreign
debts that are possible of collecting.
Neither has President Harding. 1t is
one of the first principles of the ad-
ministration that the S10,O0O.000, 900
due US from various European coun.
tries, shall be regarded as a valued
asset. The administration sticks 10
this principle against the advice of
some American bankers and business
W h l. ? he
ness for US to cancel these debts
All that Secretary Mellon and Pres
ident Harding are seeking is an
authority from the senate which will
enable them to handle each of the
different debtors according to the cir
CumstanCes with the purpose OF col
lecting all this money as soon as it is
practicable to collect
Regarded as Routine.
President Harding in requesting this
legislation from the senate undoubted
ly never anticipated the opposition
that arose. He thought he was merely
asking for the kind of routine author
ization often granted the executive
departments. AS it happens this is
the only legislation that Harding asked
directly of congress. In the beginning
of the session Harding asked congress
to reverse the taxes and pass a tariff
bill. Thereafter he scrupulously re
Trained from interference or pressure
When Secretary Mellon asked hin
and he in turn asked congress, to give
the executive authority to handle thu
foreign debts in the executives discre
uon, he probably never thought Of i
as request for legislation in tn,
ordinary sense.
What plans Secretary Mellon ma,
have after he gets the authorization
are probably not known yet even t
himself. They depend on the varying
circumstances of the different debtor
and on future circumstances as the,
may arise
Copyright 1921 by the New Yor
Evening Pest, IncD