The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-02-06
Members Angry at Failure
of Government to Take
Public Into Confidence
on British Proposal.
COMMENTS ARE CAUSTIC
All Adjustments vii! Be
Stopped and Turned Over
to Harding Regime.
Says Houston.
DEBTORS MUST PAY OFF
England's Rejected PROPOSE
tiOn Would Have Been Aid
to Her and Cost United
States Ten Billions.

Special Despatch to THE NEW York HERALD.
New York Herald Bureau.
Washington, ID. C., Feb. D.
Austen Chamberlain, Chancellor of
the British Exchequer, "let the cat
out of the bag" in more ways than
one when he declared in his speech
at Birmingham, England, that new
proposals to the United States for
made and rejected
His speech was totally unexpected
! here and caused a real sensation in
| Government circles. State Depart
ment and Treasury officials who nave
been Immediately concerned in re
4 funding allied loans in pursuance OF
! instructions Of Congress either de-
clined to he seen or refused to make
any comment for quotation. Not so,
| however, with Senators and Repre-
sentatives in Congress. They were
caustic in their criticisms of eyecu-
tive officials who would permit the
/ people and Congress to get first news
Of such important affairs from foreign
sources. This feeling broke out in
bitter debate to-day in the Senate.
Notwithstanding the Executive
silence on the subject it is known
that overtures and Indirect proposals
for cancellation of allied debts and OF
British debts to America have been
rY,o1a Thns.a L,,o,,,ae. tom. -.
came after those Se<he Peace Con-
ference and the In, .@Slied Financial
Conference az Brussels had met with
definite rebuff.
bankers Favored Cancellation.
The latest proposals met with an
equally definite declination. through
the Treasury or state department, or
both. But so far as was known pub
llcly the emphatic stand Of the then
Secretary Of the Treasury, Carter
Glass. against involving the United
States in any allied financial settle
ments or arrangements was the last
action in this regard.
1t is known IN this connection that
a number OF international bankers I'm
this country felt that some form OF
cancellation OF allied debts would set
tie the financial situation. strengthen
credit and improve the general eco
nomic situation with no great loss to
this country
The views OF the American people.
as reflected by Congress and as i'm
pressed upon executive officials. how
ever. were emphatic. Congress through
out has shown no disposition TO waive
/ payment Executive officials have
! recognized this sentiment and most OF
them at least have been in consonance
with IT,
! The blast OF indignation in Congress
10 day consequently was reflected in
tho state and Treasury departments.
I Congressional criticisms were directed
more against failure of the executive
branch TO take representatives OF the
people into confidence than against
the handling OF the matter.
settlement Awaits HnrdinE.
\ Senator Lodge presented TO the Senate
& q icNt'f lIpiu secretary HOUSTON, saying
all adjustments Of allied debts would he
! stopped by him and turned over to the
noxt Administration il was shown In
TIE NEW YonN IIrnAtn n week or moro
ago that there wos significance In the
failure Of Lord Chalmers selected Brit
sh Treasury representative. TO como 10
this country for definite settlement. az
was expected At tho time &, was in
dicated that ali settlements would no
passed along 20 The next Admnistru-
ton.
ono high official OF the state Deuar'-
mont frankly stated that Great Brit-in
would be e tremendous beneficiary rnder
any proposal for mutual cancellation or
war debts. ss many British debts wnre
political. and tnat the Allies wore petssr
able 10 pay their obligations 60 tAs
United states than The Germans w'cfe
able 10 pay the indemritios lodred
against them
RCpurllcans ard Democrats In tho SIN.
ate Joined la harsh criticism or the he.
n.inistration tor failure 60 disclose any
information ~ regard 60 the more roe ~
exchanges on The subject
The underlying ncto sounded hy -isit,x
Senator'S on ana on the floor was that
"again wo are getting Information fun
foreign sources concerning our interra
affairs that we cannot obtain from cAr
own officials"
Two things took place IN the ScDefc
which provoked criticism there. senassr
Lodge Ma read the letter from sec-
rotary Houston. discussing the resolution
or Senator walsh (Mass.l. which sought
complete information from the Treasury
- To conduct Of foreign loans and ad-
vances made to foreign Governments On
credit balances