Omaha daily bee., 1921-06-24
Allied Debt
Measured Is
Introduced
Aims of Administration Out.
lined in Exchange of Let
ters-Treasurer Given
Broad Powers.
Expect Fight on Bill
Chicago Tribune Omaha Bee Leased Wire


Washington, June 23.--Broad au-
thorty is conferred upon the secre-
tary of the treasury in connection
with the funding of foreign loans
i'll a bill introduced in the senate tc-
day by Senator Pcnrose. chairman
oi the finance committee, at The re-
quest OF the administration.
Letters dealing with the matter.
were made public at the White
House, one from President Harding
to Senator Penrose, and the other
iiom Secretary OF the Treasury Mel
Ion to the president.
Sector Penroec announced that
Lsariaes on the bill would be held
BY the finance committee next We'd
nesday, at which time Secretary
Mellon and other treasury officials
would be present. Senator Penrcse
9aid that it is his purpose to expe-
GSte the matter as much as possible.
Difficulties in Prospect.
All sorts of difficulties appear III
prospect in connection with the con-
sideration of the bill in conference
Possibility that the authority grant
cd would permit the treasury to ac-
ccpt German reparation bonds was
suggested by some of the senator's,
1t was reported that Senator Reed
OF Missouri. is on his way back to
Washington to fight the bill SEN
ator Reed is a member of the finance
committee. Senator Simmons OF
North Carolina, the ranking demo-
crat on the finance committee, how
ever, indicated that he probably
would not oppose the measure.
Secretary MELONS letter to Presi-
dent Harding sets forth that he has
been advised that, except as to the
advances made out of the proceeds
\pf liberty loan bonds, the Treasury
department is without authority to
consent to any extension OF the time
for payment OF the principal or in
terest of foreign obligations, or to
proceed with refunding plans. With
respect to advances made out OF
proceeds of liberty loan bonds the
secretary says the existing authority
contains such diverse provisions as
to interest. maturity and other terms
OF the refunding bonds as to make
it difficult to formulate compre
hensive plan.
No Definite Plan,
TIE letters failed to disclose any
dcH6fte plan relative to the refund
.ng Seyoad what has been generally |
known. Secretary Mellon says that |
it is the purpose to work out re-
funding plan reasonably within the
ability OF each country to carry out
Hs points out that in the case OF
some OF the debtor countries it is
impossible for them to make pay
ment OF the maturing interest.
1t is suggested that in the case OF
some debtor nations it may be ad'
visabc to consider comprehensively |
the entire debt OF such countries to
other nations as well as to this coun-
TRY in order to work out a plan
(Which can be carried out.
= Secretary Mellon explains that the !
authority desired is intended to apply |
not only to the refunding of loans
made under authority of the various
liberty bond acts, but also to obi
cations received by the sale CT sur
plus materials. obligations held by |
grain corporations and obligations
received from the American relief
administration.
President Harding wrote Chairman
Penrose OF the senate finance COM
1nittee and Chairman Fordney of the
house ways and means committee
today that "all the circumstances
suggest the grant of broad powers
to the secretary of the treasury TO
handle this problem in such man
ner as best to protect the interests |
OF our government"
y Urges Prompt Passage.
Il hope your committee and con-
'gress," the letter continued, will
find it consistent promptly to sane
ton such an act as that which is
suggested If the congress will
promptly anction such a grant OF
authority the secretary may proceed
Co the prompt exercise of the powers
snnbed to him and we reasonably
may expect satisfactory handling
of the obligations due and the claims
OF our government which are await
ing settlement"
Secretary Mellon prefaced letter
to the president with table sum-
marizing the war debt of foreign
governments to the United States as