The Washington times., 1921-02-13

nave pccn sumnlhrly F0JoSsoos he
testified.
NotsithstkaSias tNls Exrsspszslps
attitude OF the Treasury. the proposals
have been pressed. Secretary Houston
asserted. France, he said. initiated
the movement at the Peace Confer
enee when the French minister of
finance submitted the formal PROPOSE
ton that the United states should
waive all claim for the payment OF
the debts and allow the supreme
council to adjust them.
PROPOSAL REJECTED.
Although this proposition, which
he told the committee naturally found
favor with all the other debtor ma
tions." was natly rejected by the
Treasury. efforts FOR It's reconsidera-
ton. he added. shave been going on
ever since" Great Britain, he testi-
ned, had lent her weight TO the pro-
posal generally, although her own
negotiations for the cancellation OF
the loans have been undertaken indie
pendently of the French.
Secretary Houston's testimony con-
sumed nearly three hours, In which
the whole loan question was thor
oughly explored. He read lengthy
paper which he had prepared In ad-
vance setting forth all the data In
his possession regarding the loans
aud the proposals from foreign gov
ernments for their remission.
Afterward, members of the com
mittee said that the Secretary had
fully corroborated the statement
made by Austin Chamberlain, chan
cellor OF the British exchequer. in
a recent speech at Birmingham.
England, that Great Britain had
formally asked for the cancellation
of her debt to the United States and
had been refused. The only variance
In the Secretary's testimony. IL was
stated. is that he asserted the Brit
ish proposals had been renewed.
whereas Chancellor Chamberlain de-
clared in his speech that they ceased
with the nrst attempt.
WILL REPLY TO HEARST.
The Secretary, IT was learned fur
ther. reiterated the intention ex-
pressed In his recent letter to SEN
ator Lodge in reply to the Walsh
resolution of inquiry. OF proceeding
with fulfllment of loans to Euro
pan nations where credits have been
allocated, but not employed.
This refteration was regarded as
especially significant by the mem
bers of the committee because of
the action taken In the local courts
by Mr.. Harst to restrain him from
making these loans.
Secretary Houston said that these
contracts were made before the
signing of the armistice or during
the progress of the war, and that
the Government is committed TO
their fulfillment as a matter of
honor. His remarks. 1t was said,
indicated that this will be the sub
stance of his reply to Mr.. Hearst's
suit. in which he will give his rea-
sons for making additional loans
abroad. This reply must be filed
with the court by February 81.
In regard to the loans of Czecho-
which it is charged in Mr..
Hearst's bill of particulars, were IL
legal. as this nation was not recog-
nized until after the armistice, Sec
rotary Houston explained that the
Czecho- Slovenes had been promised
financial assistance from the United
States if they would revolt against
Austria and that these credits were
advanced in keeping this pledge.
In reference to Liberia. to which
loans were also made. although she
did not formally declare war on Ger
many, an act which the law authoriz-
ing the loans specifically stipulates.
the secretary said that Liberia always
had been regarded as ward" Of
the United States and for that reason
she was allowed to borrow a small
sum.
81 hope that at the meeting Of the
Senate Judiciary Committee tomor-
row / will be able to get action"
Senator Reed said today. 81. am
absolutely opposed to any further
foreign loans. / am in favor Of not
only stopping them Temporarily. but
of preventing them entirely. 1 have
no doubt that Congress in the near
future is going to show it's real feel
ing in the matter, and that court
necessary as it seems now"
President-elect Harding immedi-
ately after taking office March will
begin negotiations for payment of
SO ,000, 900, 900 worth of war loans by
foreign governments il he follows
public opinion as represented by Re-
publican leaders in Washington.
Republican leaders here who are
preparing to urge Harding to take
prompt action believe their judgment
comedies with the public opinion Of
the entire United States. The coun-
try is keen for the settlement of the
terms under which England, France
Italy, and other nations will repay
the billions advanced during the war,
Republican leaders believe.
England owes the United States ap-
proximately $4,000. 100000, or enough
to operate the United States Govern
ment for one year.
As matter of fact, this debt could
be cancelled as far as England is con-
cerned without the United States
losing a dollar of credit according to
the way the proposals are understood
to have been made. England bor-
rowed sthe money from the United
States to loan to other nations. I'm
der one form of cancellation proposed.
the United States simply would take
over England's creditors for this
money and England then would be
free of debt to the United States.