Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-06-18

Administration Will Ask
Congress For Legislation
For Funding Program
DEBT PROBLEM
Offering of Accrued Interest as Pre-
MUM is Suggested-High Points OF
Situation.

Washington, June President
Harding will' ask Congress to give
the Secretary 2f the Treasury add
tional authority for settlement OF
the loans made tc foreign govern
ments with the ultimate view OF re
/ funding the outstanding obligations
and Of offering them to the Amerl'
can public,
Definite announcement to this ef-
. feet was made at the White House
yesterday afternoon following a
meeting of the Csbinet, which de-
voted the larger part of lis time to
the question of de- ling with the for
eign loan and of popularizing It
among American investors.
It has been discovered by Secre-
tary Mellon in his study Of the loan
prob,em that he is handicapped in his
effort to work out a refu ltiing pro-
gram by the provisions of the vari-
our Liberty Loan acts under which
authority was given this Government
: to establish credits for the tenefit of
the Allied powers.
1t is not at all clear to the Secre-
tary how far lie may go, for example,
0in renting the interest which re-
mains unpaid upon foreign obliga-
tions, or, how heemay possibly adjust,
this matter by adding the unpaid in
terest to the prin' ipal Of the loan,
. pr how far the Government may
properly go inc offering foreign Sc
Eurities to the American people.
These difficulties were brought to
The attention of the President and
Ehe Cabinet Yesterday and, after
they were carefully reviewed, it was
lecided tfat the President should ask
# Congress Legislation which will
lrtie the hands of the Aaministra-
ion regarding the loans. The exact
provisions Of the proposed law will
Be worked out by Mir. Mellon and
nerr.5ers of the Ways and Means
,ommittee of Congress and the leg
station may be ready for considera
ion within the next two or three
yeeks.
MEANWHILE the most interesting
hase cf ~ matter perhaps is the
efinite announcement on the part of
ne, Administration that as soon as
ongress h9s giver. it the necessary
uthosity 6 viii ask the reople Of
ne countI 40 absorb as many of
be forenh obligations held by this
overnn,egs as the money market
ay be able to assimilate without
etriment of other interests.
President Harding gave ar intima-
pm of his policy in this respect in
recent speech delivered IN New
prk in which he said that he hoped
at the time wa: not far distant
hen the Government could put the
Pigations of the Allied powers with
easy reach of the American inves-
r.
Since that time financial interests
Frticuarly hav3 been awaiting a
pre- definite announcement from the
hite House or the Treasury De-
rtment as to its purposes and its
ethod OF procedure. Delay in max
this announcement has been
used to some extent by the study
rich Secretary Mellon has been
wing the whole problem and the
tcutlles ne has encountered, under
listing law. of presenting work.
lie plan OF action to the President.
Yesterday it was found necessary
ask for further legislation. This
Rans, of course, still further DELAY
the processes Of adjusting the 70,
n loans and of so rsfunding then
BIT they be available to investors
hless Congress acts with unaccus
ned speed it will be late fall o
Fly winter before the. Administra
ms program is fully evolved. -
Meanwhile the high points OF
~ ! =
The p p>'age of legislation whic
empower the Treasury Depart
.1;.-.a ~. a.