New-York tribune., 1921-06-30

the Treasury it will be used to serve
the best interests of the government
and people"
The secretary said there had been
preliminary negotiations with Great
Britain regarding full payment Of
principal and interest.
Senator Watson asked if there was
any dispute with any nation as to the
sum owed the United States. The Sec
retary said there was none.
Has any suggestion been made that
we accept German bonds in exchange
for the debts owed us by some of the
other nationsg" asked Senator SIM
mons.
Not to my knowledge" replied the
secretary.
Senator Reed asked why the bill
contained provision enabling the Sec
retary to accept bonds of one govern
ment in exchange for those of another.
Would Cover ANY Contingency
eve wanted to cover any contin-
gency that might arise" answered Sec
retary Mellon.
Don't you know that some European
statesmen plan to have us accept Ger
man bonds in payment for debts of
other nations?' asked Senator Reed.
Il do not know that" said the Secre-
'Siy. We nave no lulentlOn OIL hC-
cepting any bonds which are not good
cured. We do not intend to do any
thing that is not good business"
1t was brought out that the United
States loaned some nations money to
pay debts to other countries, which also
owned the United States. Italy re-
Gently obtained $16,000,0o0 from the
United States to pay England; this was
paid by England to France, and France
paid it back to the United States to be
credited against the Polish debt.
Assistant Secretary of the Treasury
method of balancing up accounts he-
cause Italy had received more than her
share Of supplies, while France re-
ceived less than her, share. Senator
Reed asked critical questions about
this. Senator Penrose asked Secretary
Mellon whether this was done under
the Wilson regime.
at was" said Mr.. Mellon.
''If the Senator from Missouri will
consult Colonel Houses memoirs he
can get full information on this trans
action and Others" said Senator PEN
rose.
Mr. Wadsworth said Finland and
Poland had made inquiries as to what
could be done about their overdue
loans, but had not offered to pay
Secretary Mellon said Great Britain
was the only other nation to make in
quiries or overtures about payment or
extension, but the negotiations with
Great Britain have not reached
definite stage.
Secretary Mellon explained that
President Harding favored proposal
to have the accumulated interest added
to the refunded bonds in the form of
a higher rate of interest rather than
as an addition to principal.
That is just one of great many
plans for payment of the European
debt that have been suggested" said
Secretary Mellon. "However, the Pres
ident thought it was a good suggestion
and it will be considered along with
other plans"
In answer to Senator Walsh, of
Massachusetts, the Secretary said it
would not be practicable to have the
arrangements subject to approval of
the Senate.
Senators expressed apprehension lest
the Harding plan would result in the
United States losing part of the S1,000,-
600 owed the United States as interest
and would amount to a remission of
part of that amount.
407,303,000 interest she owes us when
she rs able to spend $700.oo0,O0O in en-
larging her navy?" asked Senator
Reed.
Secretary Mellon thought it easier
for England to raise money to expend
at home for battleships because the
rate of exchange would not operate
against her.
Senator Reed recalled that there had
at one time been a proposal to accept
German bonds in payment of the Bel
gian debt Assistant Secretary Wads-
worth said this plan had apparently
been dropped
Senator Reed asked Secretary Mel
lon to find out whether Great Britain
lent the Argentine government $780,
100000 since the war closed The Sec
retary said he would look the matter
up.