The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-11-28
NATIONS MAY
COMPROMISE
OBLIGATIONS
Congressman Inter e sted In
Report that Informal Agree
ment on War Debts May
Result from Conference.
PLANS ARE SUGGESTED
PALLADIUM NEWS BUREAU

reports that one or the results OF the |
gathering of nations at the arms con- |
ference may be an informal agreement
for compromising the II billions of
dollars of war debts 10 the United
States are of extreme interest to mem
bers of congress-
Publication of these reports follow
cd persistent rumors that representa-
tives of the debtor countries had en-
gagged in unofficial discussions with
representatives of the American gov
crnment on a compromise agreement
calling for so per cent payments, pro
yided the armament conference is sue
Ccssful
1t has been reported that Premier
BRAND has returned TO France with
The tentative understanding that for
NAL proposals along the lines indicat-
ed will be the basis Of another inter-
national conference.
II Is understood that the informal
discussions on the question of a set
Element of the allied debt to the Unit
ed States were founded upon the con-
tention, which has been frequently ad-
vanced of late by a number of influ-
cntial American financiers, that there
mess recovery until the world is stabil-
ized financially through an adjustment
of the tremendous debt burdens
Interested in Armament
Members of congress. particularly
he members of the finance commit
'ees OF the two houses, are also in
terested in the announcement of Frank
\. Vanderlip. formerly head of the Ma
tional City bank of New York, who
has been studying economic and in
dustrial conditions in Europe, that he
viii offer a possible solution of the
interallied debt problem this week.
Coincident with the Vanderlip an
nouncement James Simpson. vice-pres-
dent OF Marshall Field and company,
warns in a published statement that
Europe is in economic and financial
chaos.
Unless something is promptly
done, Simpson asserts, TO avert the
disaster. which approaches with con
stantly increasing rapidity. it will
spread from one country to another
until we are all involved in the mael-
Strom.' His remedy for the condi-
tion he describes follows:
Details Solution.
|. The United States to agree to a
moratorium of at least 90 years for
debts due this government For the
first 10 years no interest TO be charg-
ed For the second 10 years only a
small rate of interest, probably two
percent After 90 years have elapsed
The United States to receive its prin-
cipal in full, with a proper interest on
deferred payments from that time. pos
sibly accepting from France, Italy and
Belgium payment at the same rate of
exchange existing at the time the loan
was made
, Those nations to whom this con-
cession is extended to modify amount
Of reparation from Germany and make
terms thereof with which il is posi-.
bic for Germany to comply.
3. England to agree TO make similar
concessions to nations which are in
her debt
4. To take steps to insure that Ger
many's budget will balance. so thai
her receipts from taxation shall fully
meet her current expense, plus the
amount of indemnity obligation final
ly settled upon
Suggestions Sound Sense
These suggestions" Simpson says
in concluding his statement, "art
neither philanthropc nor idealistic
but simply good sound business sense
They will create kindly feeling to
ward Us. that intangible asset whicl
can be made to pay dividends in time
10 come much greater than the full
amount Of debt owing US"
The report that there have been in
formal discussions on ths interalliet
debt gives assurance that when tn,
bill providing for a commission to ar
range refunding of the war deb
comes up in the senate in the regular
session beginning next month the dis
cussion will come closer TO clearing
the question that did the debate il
the house before the body passed th'
measure.
Gives Blanket Authority
The bill as ii passed the house gav'
blanket authority to the refundin'
commission. If the bill passes th'
senate it will undoubtedly be amend
ed to restrict the commissions 5 author
ity. Strong opposition TO the hous
bill exists in the senate on the grOunt
that it Confers authority of too erea
scope upon the secretary of the treas
ury. who would be chairman of tn
refunding commission of five mem
bers.
It would. of course, require specif
authorization of congress to valldat
any attempt to cut off part OF tn
inter-allied debt, but it is eXpecte
that when the senate finance commit
tee takes up the bill it will incorpol
ate an amendment specifically requil
ing that any action taken by the con
mission shall he ra titled hV cOug greSS