Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1921-01-23
Payment Of
BritishDebt
Postponed.
Negotiations for Refund of
American Loan Expected to
Be Delayed Until After In
auguration of Harding.
England Seeking Terms
By ARTHUR SEARS HENNING.
Chicago Tribune Omaha Bee Leased Wire.

Chicago Tribune -Omaha Bee Leased Wire.
Washington, Jan p Postpone
mcnt until the advent OF the Hard
ing administration OF the further
negotiations OF the reiundng OF the
American government loan to Great
Britain is expected to be one, OF
the results OF the conference i'll
London which British Ambassadors
Geddes departed so suddenly to at
tend. coiacidentally with tho cam
collation. Of Lord Chalmers journey
10 this country to discuss the matter
with the Wilson administration.
The rgfunding OF the $4,000,000.-
600 loan TO England into definite
long term bonds, including unpaid
interest on the principal, is only one
di numerous matters on which it
will be necessary for the two gov
crnments to reach all understanding
an an early date
England is seeking favorable
terms in the refunding of the loan.
America wants more favorable treat
mcnt of American oil interests in
Mcsopotamia. Mr. Harding wants \
England to consent to the revision
OF the Hay Paunccfote treaty. so as
to permit the exemption Of Amer
icar ships from the payment Of
Panama canal tolls. and has said he
thinks he sees way OF achieving
this end
Negotiations Pave. Way.
The loan negotiations with Great
Britain will pave the way for re-
funding all the loans to the allies,
which now aggregate with unpaid
interest close to $l2,000,000,000 The
total Of all foreign obligations to
the United States at this time is
placed at $l9000,000000, inclusive OF
the loans to the allies.
Government experts have been
studying the whole problem OF
Europe's obligations to this country
and the possibilities OF eventual
settlement without disastrous ecot
manic and social reaction upon
America. n
Consideration Of The problem has
involved the issue OF German repara-
tons and that nations powers of
rehabilitation aud payment. Even
French statesmen are less optimis-
tic today about Gcrlnany's capacity
TO meet her obligations than they
ncrc when tho. terms wcrc written
INTO the peace treaty. Onc OF tho !
iallacies which was factor in csti-
mating Gcrn,any's potential econom-
ic strength was the proposition that
for some years before the war be-
gan, Germany was expending annual |
ly S400.000,000 on armamepts. The
argument was that Germany would
be able to conserve this item of her
prewar budget and turn it into the
rcparations.
Market Lacking
However, the buying capacity of
the world befa0g August, 1914, was
equal to the agricultural and indus
trial output of the world. and it is
pointed out that should Germany
manufacture and sell the amount of
goods that would enable her to put
that S40Q,000,000 into reparation. she
must uke away from England,
france, Cnited States ana otner coun-
tries, just that amount OF business.
The United States, il said. also can
produce more commodities than it is
putting out. but its output is equal
to the demand for its goods, regu-
lated by the capacity of other coun
tries to pay for them.
The whols world is dislocated and
economic processes completely up
set, government experts assert, and
whatever plan is agreed upon for
the settlement of Europe's debts to
the United States ought to be so de-
vised as to avoid real dangers to
this country. In any event, it is held
by some of the advisers closest to
the president that America is likely
to suffer from receiving payment, al
though it is not suggested that the
dehfs he cancelled or reduced