Evening star., 1921-06-29
EUROPE OWES i. s.
BILLION IN INTEREST
Secretary Mellon Gives Sem
ate Committee Figures.
Explains Bill.

Approximately $1,000. 600. 900 interest
was owed the United States. by Euro
pean debtor nations up to about May
Is. Treasury officials told the Senate
finance committee today. explaining
the administration bill to give the
Secretary OF the Treasury broad au-
thority in funding the allied debts.
Assistant Secretary Wadsworth placed
the amount Of interest due at $s43,-
534,750.
Secretary Mellon told the commit
tee that no suggestion has been made
that the United States accept German
reparation bonds as substituted for
the allied obligations and declared
that the Treasury had no intention of
inviting any such proposal.
Mr.. Mellon said the only funding
negotiations entered into were with
Great Britain, and they had been Of a
preliminary nature.
Favors Broad Authority.
Questioned specifically as to the pro-
vision Of the bill authorizing the
Treasury to>accept bonds of any for
eign country in lieu Of those of the
said he thought "it necessary that
the authority be made broad enough
to take care Of any contingency which
might arise"
There is nothing specifically con-
templated along that line" he added
but it is deemed advisable that the
Mr.. Mellon described as a remote
suggestion" an opinion BY Senator
Reed, democrat. Missouri, that the bill
as drafted might allow the Treasury
to accept Italian bonds for the French
debt, French bonds for the British
debt. and so forth.
Asked if he would object to elimina-
ton Of German bonds as substitute
obligations, the Secretary reiterated
his belief that the authority should be
broad and unlimited.
Senator Jones, democrat. New Mex
leo. asked how the matter of the last
Italian loans raised by Senator Reed
was pertinent to the pending bill.
Nations Make Inquiries.
, II am no more able to answer that
question than Is the New Mexico sena-
tor" replied Chairman Penrose. 1T be-
longs to a period that Is past and has
no bearing on the present discussion.
I would advise the senator from Mis-
formation from Col. Houses memoirs"
Finland, Poland and some of the
smaller nations, Secretary Wadsworth
said. had made inquiries as to the
course they might pursue in regard to
their unpaid interest. The answer has
been. Mr.. Wadsworth added, you
must pay up"
Only One Ready to Negotiate.
None of the larger European ma
tions except Great Britain. have indi-
Gated a desire to enter into refunding
negotiations, Mr.. wadsworth said.
Mr.. Mellon said the Treasury would
consider a plan proposing that ac-
cumulated interest due at the time of
and be paid through a higher rate of
interest to be paid on the refunded
obligations. This proposal. he said,
was favored to some extent by Presi-
dent Harding.
Senator Reed was of the opinion
that under such plan foreign ma
tion might pay the principal and
interest.
Opposes Walsh Plan.
Secretary Mellon disapproved the
proposal by Senator Walsh, democrat,
Massachusetts,, that the refunding
agreements be subject to Senate ratifi-
1T might lead to another treaty
fight" remarked Senator Simmons,
democrat, North Carolina.
Senator Reed asked why England
owing the United States $407. 100000
couldn't pay inasmuch as she was
finding money to enlarge her navy.
"The two propositions are different.
replied Secretary Mellon. ENGLAND
must pay us in gold. but she doesn't
need gold for home expenditures"
Rail Bonds May Be Better.
rAre you in favor of accepting Ger
man bonds?" asked Senator Reed.
"Under certain circumstances might
favor accepting them," he said.
Secretary Mellon approved the state
ment of Senator Williams, democrat.
Mississippi, that there were several
countries in Europe whose bonds might
never be as good security as German
bonds and that railroad bonds Of some
countries might be better security than
the government obligations.
rs it not true" queried Senator
Reed, "that the British government
since the war has loaned $50.000.000 to
the Argentine government"
Secretary Mellon said he could not
answer, but would look up the matter.
The committee adjourned under call
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