Evening star., 1921-10-21
OUTLINES FOREIGN
DEBT PRED|CAMENT
Fordney Blames Wilson Ad-
ministration for Not Com.
plying With Law.

Opening debate in the House today on
= bill for creation of commission to
refund or convert obligations Of foreign
governments to the United States.
Chairman Fordney of the ways and
means committee declared there would
be no settlement problem had the Will
son administration complied strictly
with the law authorizing wartime
loans
But | am not here Mr.. Fordney
continued, ito criticise the former ad-
rninisIation for no. strictly complying
with the law, because there may have
Eeen obstacles in the way at the time
But, whether right OF wrong. we are
confronted with u ptcu lar cJndl ion.
The Secretary of the Treasury con-
tends that he is not clothed with au-
thority to settle the foreign debt be-
yond demanding payment.
Mr. Fordney reiterated that cancel
latiOn of any part OF the debt was not
in the thought of the administration
or Congress. and that no headway
could be made without additional leg
islation.
The bill was taken up under an
agreement calling for Il vote before
adjournment tonight.
Mr. Cooler, VINO conducted the
democratic fight against the bill, de-
clared he opposed it because it vested
TOO much power in Il commission of
five and that the settlement of the
debt was a question over which Con
gress should have absolute control.
He Insisted that 50 per cent nf the
debt, which exceeds $4,000, 900, 200,
would be collected.
Representative Longworth. repuh-
lican, Ohio. said IL was a matter of
great regret that "for the first time
since the first liberty loan act parti-
sanship should have been injected
into the question of funding our for
eign war debt.
Mr.. Longworth declared that no
member OF his party in four and q
half years had ever hinted at politics
n connection with the war loan. and
that when the first concrete and
workable proposal was put before
the House the democratic party as
u unit opposes it," insisting upon ap-
proval of all commission acts by
Congress. which. he added, would
"hamstring the commission"
This would prevent the conclusion
of any negotiations within anything
like a reasonable time unless Con-
gress were in session. he said. "and
| am one Of those who hope that ses-
sions of Congress in the future are
going to be less continuous than they
have been In the past"
Report on Foreign Loan RcfundinH.
The ways and means committee in
report to the House yesterday on
the foreign loan refunding bill de-
clared there was no basis for any be-
lief that authority was sought by the
Secretary of the Treasury either to
exchange the war obligations of one
country for those of another. or to
cancel any part of the money owed
the United States by the allied ma
tionS.
While no such authority was sought.
the report added that a specifi" pro-
vision was put into the bill as fol-
lows: That this act shall not be
construed to authorize the exchange
Of bonds or other obligations of any |
foreign government or cancellation
of any part of such Indebtedness ex-
cept through payment thereof"
Democratic members of the commit |
tee in minority report insisted that |
the bill should be amended as to J
require congressional approval of all |
acts by the debt commission looking
to final settlement With foreign ma
tions
The report set fortl, that at the |
time loans were being made by this |
government the possible length of |
the war and the approximate amount |,
OF advances were not known. |
Eleven Billions Total Due.
Estima ting the total due from for
etgn governments at $1,000. 600. .0OV, |
the democratic members said that IL |
was mot a wise policy to destroy |
absolutely the control of the legisla-
tive branch of the government over |
this vast amount"
Th eauthority of the Secretary of |
the Treasury to refund the foreign |
debts. under existing statutes. has !
never been questioned the minority |
insisted, adding that in it's opinion !
the Secretary should proceed under |
these laws The report excepted, in |
this regard, debts due the United
States Grain Corporation, the Amer
lean Relief Administration and the
War and Navy departments. aggre. !
gazing S700.D00,000. which 1t admitted |
the Secretary was without authority |!
to refund.