New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-22
25-Year Delay
On Allied Debt
/ Up to Mellon
Senator's 10 Await His De-
cision as TO Whether
Wilson Negotiations Are
Binding ON u. s. Now
No Agreement Signed
Treasury Chief Again Says
He Has No Intention of
Cancelling Amy of Loans

j
from The Tribune's Washiaatos Bureau
| WASHINGTON, July 21.--At a meet
ise Of the Senate Finance Committee
! BEHIND closed doors to-day it was de-
/ ,ided to await report from Secretary
l Il the Treasury Mellon on the oues-
ZION of whether the government is
1 legally or morally bound by the Rath-
bone negotiations of the Wilson Adj
ministration with the British govern
gent over the funding of the British
debt before proceeding further with
shs bill to give the Secretary of the
Treasury broad powers in respect to
! the funding of the debts owed the
, United States by foreign govern
ments.
The committee at this meeting
evinced unwillingness to act on the
bill until it knows definitely whether
Secretary Mellon regards the govern
nens as in any way bound or ham
pered by the Rathbone negotiations.
Senator Reed, of Missouri, offered a
notion in the committee requesting
the Secretary of the Treasury to ex-
anime into the docume ntsA relating to
the negotiations between former AS
sistant Secretary of the Treasury
Hsthbone and the British government
snd report whether the government
vas in any way bound by those negoti-
stions. The committee then went into
executive session. After threshing the
matter over it was the sense of the
committee that it would not be neces-
sary formally to call on the Secretary
to report. Instead, it was decided to
have Chairman Penrose suggest tc
him the wisdom Of examining the
documents, finding out to his salts
faction in what position the govern
ment is placed, and then informing the
committee.
Little Delay Expected
Meantime the committee adjourned
subject TO call and expects to await adj
vices from Secretary Mellon. 1t is not
expected to-day's action will result in
any great delay in regard to the re-
funding bill
Secretary Mellon made it plain to-
day when before the Finance Commit
tee that he doubted whether the gov
eminent had been bound, but that he
had not reached final conclusion. He
said again that the government Wmay
feel morally or legally bound" by the
negotiations of his predecessors, which
are known as the Acknowledgment ne
gotiations. Mr.. Blackett being the
representative of the British govern
ment with whom Mr. Rathbone con-
ierred
Senator Reed asked Mr.. Mellon
whether he considered himself bound
IA the extent that he would mot have
free hand in arranging for the fund
ing of the foreign debit
The Secretary could not say conclu-
sively to what extent he was bound by
what his predecessors sought to do, as
he had not had time to go through the
documents.
But you testified yesterday that you
would feel morally or legally bound by
the negotiations" said Senator Reed.
Il think that is correct to the extent
that there is or may be a general
obligation imposed upon the American
government by the negotiations" said
the Secretary
He added that in his letter to the
British Am bassador he explicitly stated
that the papers related only to "ten-
tative proposals or suggestions" and
not to any agreement. He explained
that the negotiations were suspended
before there was any agreement.
No Agreement Signed
None of the papers or documents
there was no agreement drawn up and
signed" observed Assistant Secretary
Wadsworth.
Senator Reed said the facts sur
rounding the negotiations were pre-
sented lin such a nebulous way" that
he did not believe Congress would
grant the powers carried in the pending
hIll unless the Secretary made his
attitude more clear.
This led Secretary Mellon to say he
vas not seeking the tremendous re-
sponsibility involved, and was willing
to be relieved Of it and have the task
OF handling the foreign debt imposed
On commission or commissioner.
Secretary Mellon Informed the COM
mlttee that Secretary of State Hughes,
the British Ambassador, Sir Auckland
Geddes, he and Mr.. Wadsworth CON
TERED May 2 on the general question of
Inc foreign debt of the United States
and the relationship Of world financial
conditions thereto. 1t was preliminary
ana there were no negotiations, Mr..
Mellon stated. The question of de-
lerring payments was not brought up.
Out of this conference, Mr.. Mellon
soued, grew his letter to the British
ambassador of May II, telling the
ambassador about the Rathbone-
biackett negotiations.
. senator Simmons, of North Caro-
una, asked the Secretary what he in
tended to do about deferring payment
OF interest on the British debt.
intend to collect every dollar
We are entitled to and that can be col
.seeed,' said Mr.. Mellon. al intend to
10 II on the best terms possible"
Not to Take German Bonds
Inc Secretary said no decision had
p ,Ss reached on the question whether
I Il. government would relieve the
ueosor governments of "interest on
Me interest" He intimated. however,
; na1 the United States might have put
~, nsa under obligation not to collect
'"efest on deferred interest.
:. senator La Toilette pointed out the
interest on the deferred interest now
sn'Ynnts to over $40,000,000 a year
~. ssna asked whether Mr.. Mellon thought
United States ought to lose that.
AT: Mellon said he could give no
,nesision until he had studied the whole
natter T,er carefully.
tsn NJ Secretary asserted he had no in
"uon OF accepting German bonds.
Ambulance Chaser Paid
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