The Washington times., 1921-06-29
j. 5. OWED
BILLION IN
INTEREST
Mellon Tells Senators of Huge
Amount Due in Asking Author
ity to Settle Debt.
By International News Service.

tnkttVMtsob"t WV" E'f 80
Foreign governments owe the
United States nearly $1,000, 900 900
In interest alone, entirely aside from
the principal debt of nearly 100000.
900 900.
This was disclosed today by Secre-
tary Of the Treasury Mellon and
Assistant Secretary Wadsworth
when they appeared before the SEN
ate Finance COMMITTEES in support
Of the Administrators bill to give
the Treasury head blanket authority
TO deal with outstsnd foreign obi
cations. ~ S
INTEREST IS ssz2.sso. .143.2..
The exact amount OF interest due
and uncolleeted was as much as Ss22.-
550,14322 on May IS, wadsworth said.
wadsworth divided the interest due
this country as follows:
On money advanced under the LIB
erty loan acts. ss22.550.145; on relief
notes." ss.1sS,6S7; on army and navy
supplies sales, sio,s2s,130, and on
notes held by the United States Grain
Corporation on -four sold abroad last
year S1,ss6,795.
Mellon said the negotiations for the
Repayment VI Nhc oht
est OF the foreign Indebtedness had
not reached the stage yet where he
could announce any definite plan for
the funding of the foreign loans.
The negotiations had not extended
beyond Great Britain, the chief cred
itor of the United States, Mellon ex-
plained. What the Administration 10
seeking Is complete authorization TO
deal with any contingency that may
arise in the foreign loan situation
without having to refer to Congress
any or all steps II may deem advis-
able In Its 'fforts TO arrange for
satisfactory funding OF the foreign
loans.
Mellon denied that the Administrs-
tion Is contemplating any plan for
the acceptance by the American Gov.
ernment OF German reparations bonds
In exchange for bonds or securities
OF other foreign governments indebt-
ed to this country, or as a basis
for the adjustment or liquidation of
that indebtedness.
WIDE AUTHORITY NEEDED.
"The request for authority TO deal
with the debtor nations relating to
their obligations is necessary to the
Treasury Department" Mellon said.
Ine DSpNINf1tHt lN WlN0Oul AhAiiOi
ity to consent TO any extension OF
the time for payment Of principal
and interest OF the debts of a num-
Der of the debtor nations. and In the
case OF those where the debts arose
from advances out OF the proceeds
of Liberty loan bonds. the authority
Is TO a large extent restricted.
without the broad authority In the
act submitted to you II would be diff
fcult and In some cases impossible
to proceed and procure the new secur-
tiles in a form that will protect the
interests of the Government The
reason for asking the broad authority
which will cover any contingencies
that may arise in the negotiations
Is that IL is essential to have the
new securities in the most substan-
tial form so that they may be avail
able to this Government for any flu
ture use. It is essential that the au-
thority he complete so that no ques-
tion may arise In the future respect
ing their legality.
SOME NATIONS CAN'T PAY.
TN the case Of some OF the debtor
countries Il is impossible for them
10 make payment OF their obliga-
tons as they now mature. II IL I'M
possible for some OF them to make
payment OF the maturing interest.
To insist on payment might be
disastrous 20 the peoples of such
countries; and besides there may
have 10 be given consideration 20
the bearing OF the adverse foreign
exchange rates existing at the time
against these debtor countries and
which may make II desirable TO de-