The Washington times., 1921-08-21
SENATE REPORT
|. OK. s BLANKET
ALLIED REFUND
Minority Findings, However.
Declare Penrose Bill Will
Boost Taxes.
BY HAIRY sTRINGER.
international News Service.

international News service.
The Penrose bill which would give
the Secretary OF the Treasury
blanket authority" to- refund the
81, 900, 900 allied war debt was favor
ably reported to the Senate yesterday
by the finance committee with SIX
members dissenting.
The Minority Report.
Passage of the bin is recommended
by the committee on the ground that
existing laws are too limited TO at
ford satisfactory basis for the com.
plicated 'fefunding operations in
volyed,' Its report also suggests
that when the refunding negotiations
are begun. 1t will be necessary for
the Secretary of 1. the. Treasury to
have fully as broad" powers as the
representatives. of the debtor coun-
tries, so that he will be able at the
time to make the best settlement
conditions allow.
In a minority report filed by the
members of the committee opposed
to the BILL sharp exception LIS taken
to the majority conclusions. 1t de-
clares that the Secretary of the
Treasury already has sufficient au-
thority to liquidate the war loans;
that the measure asks Congress to
abdicate it's control of the Govern
ment's financial affairs, and that II
WILL IL enacted, increase the nations
tax burden and imperil our foreign
and domestic peace.
Battle Is Presaged.
The cleavage in the committee over
the bill is an indication of the senti-
ment toward II on the floor, which
presages a prolonged legislative bat
tie when its consideration is begun.
Cognizant of the situation, Senator
Penrose, chairman of the Finance
Committee, announced in reporting
the measure yesterday that he would
not press for action on IL until after
the recess.
Declaring that in all the history OF
the nation, mo such sweeping powers
have been demanded by or granted to
any official in time Of peace" the
minority report contends that the pas
sage of the Penrose bin will make
the Secretary of the Treasury "abeo-
lutte dictator" of the war debt, which,
it adds. is ten times greater than the
entire national debt Of the United
States before the war.
mo man has ever lived who should
be entrusted with such gigantic re-
sponsibility," ii asserts. I'VE are
amazed that any man would seek to
WELD such enormous powers without
submitting his acts for the approval
of the elected representatives of the
people. No man should ever be given
such untrammeled control over the
finances OF this country and the des-
TIMES of other nations.
See Foreign Delegates Uneasy.
1.-The inevitable result OF the be-
stowal of such complete power and
authority will be to weaken the hands
of the Secretary OF the Treasury In
| his negotiation with other govern
ments. If the representatives Of
foreign nations understand that any
settlement which liz made by the Sec
rotary OF the Treasury must run the
gauntlet of Congressional criticism
and ratification, they will be less
likely to propose to the Secretary
terms of settlement which it would
be embarrassing for him to submit
for Congressional approval.
"If, however, they see in him the
sole and final judge and arbiter Of the
terms of settlement. they are not
likely TO spare either importantly or
intrigue to secure an adjustment
which fill relieve them of their bur
den OF debt"
Illustrating the sweeping powers
| the Secretary will have IL the bill be-
comes law, the minority report con-
! tinues:
He would be empowered to per-
init England or France to substitute
| German or Turkish bonds or the I'M
secured or unguaranteed obligations
of any of the newly created Balkan
states. He will be empowered to make
/ anV bargain he wants TO make. accent
any bonds he wants to accept, defer
any debts or interest he wants 10
defer, and bind or by substitution re-
| lease any debtor nation at his own
! will and pleasure ~.