New-York tribune., 1921-02-06
Senate Stirred
Bv British Plea
To Cancel Loan
tooetinusd from uscs sns)

0l7,63S of it's obligations held by the
United States" under which '"$i7, 1888
of principal, together with accrued in
terest, have been paid"
"The accrued interest on tho re
mainder becomes due during April and
May, 1921" MIR. Houston added.
Thereafter interest ia payable semi,
annually, and the principal becomes
due in equal annual installments Dur
ing April and May of the years 1921,
%, '23 and "a.
"The negotiations aforementioned
were conducted almost entirely orally.
There have not been any official propo-
sails on the subject that would in any
way bind this government or the Tor
eign governments other than the agree
ment Of the foreign governments con-
tanned in their demand obligations held
by the United States to give long time
obligations, if requested, in exchange
therefor.
For obvious reasons, shall not dur
ing the remainder of my term of office
proceed further with such negotiations.
leaving my successor free if he sees fit
TO continue them without any commit-
ments having been made by me, except
as to the $122. .017,633 of obligations
with the British government above re-
ferred to"
Senator Lodge called attention in
this connection to the fact that as
chairman of the Foreign Relations
Committee he had reported recently
from the committee two resolutions or
the subject of the loan.
senator Knox referred TO an Asso-
clated Press report that he favored
the cancellation OF the foreign debts.
He characterized this as So perfect alb
surdity.' IL have done many inane
things, but never anything as bad as
that" said he.
Houston Objects to Inquiry
Another development of the day in
connection with the matter of exchange
OF obligations and loans was in the
senate Judiciary Committee. The conf
Imlttee had planned to he'd 8 further
nearlng OF Nicholas Kelley. Assistant
Secretary of the Treasury, on the sub
lect OF loans to the Allies. The com
mlttee deferred its meeting until Mon
day. But Senator Reed, outside the
committee room, said the Secretary OF
the Treasury did not want to have the
conduct of his Office with reference to
foreign loans investigated, and hence
the halting of negotiations.
Senator Overman wanted the investi-
cation turned over to the Finance Com
mittee, but Senator Reed strongly OBJ
Jected. He said there was an impor-
tant constitutional question involved,
and the bill TO prohibit further foreign
loans should be kept before the
judiciary Committee. Chairman Nell
son said the Treasury had promised to
make no further loans TO the Allies, but
Senator Reed said the Treasury had
not promised not to make further ad-
vances on credits already established
Senator Hoke Smith urged that the
committee report bill which would
forbid loan of another dollar, but after
discussion the matter went over.
Allies Held Able to Pay
The suggestion that the United
States and Allied nations cancel THEN
war debts met little sympathy in State
Department circles. One keen OBJ
declared that if the Allies expected
$50, ,000,000,000 in reparations, there
was little reason to believe that the
Allies, the victorious nations, would
be unable to pay sum one third as
great.
This observer sounded q warning
against this government becoming a
"harassing creditor" "The United
States" he said, "believes in the gem
eral principle of being an excellent
creditor, reasonable, fair and liberal in
her financial dealings, and we must
not press the subject of collection Of
either interest or principal from other