The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1921-09-30
0, KS FUNDING
OF ALLIED DEBT
Senate Committee Approves
Harding Plan for Dealing
With Allies.
MELLON MAKES STATEMENT
Administration Bill Carries an Amend
ment Requiring That Funding Be
Completed Within Five Years
u. S. Not Committed.

Washington, July 30.-FavOrable re-
port on Che administration bill giving
the treasury blanket authority to con-
duct negotiations for the funding of
the allied debts, was ordered by the
senate finance committee 1t carries
a committee amendment requiring that
the funding be completed within five
years.
Secretary Mellon formally advised
the senate finance committee i'm -eply
10 a committee inquiry as to his views
regarding the extent TO which the
United States had been committed
under the Wilson administration on
deferment Of payments of allied war
loans and interest.
The government was committed, he
said. TO postpOnement of interest pay
ments for two or three years. and sub
Sequent spreading out of postponed
payments, contingent upon such for
eign governments carrying out with
reasonable pr0mptness, after this gov
ernment is ready to proceed. salts
factory funding of it's existing short
time obligations 10 this country"
Mr.. Mellon added that he did not
think any obligation had been imposed
on the government through negOtia-
lions In London between Mr.. Rath-
bone of the treasury and a British Of
fetal, frequently discussed In finance
committee hearings.
The secretary's communication was
in the form of letter 10 Chairman
PenrOse and was presented personally
in connection with Mr. MELONS fur
ther argument in favor of prompt pas
sage of the administration bill pro-
viding blanket powers for the treas
ury I'm dealing with allied loans.
$50 far as concerns the principal
debtor powers" the letter said. (which
together owe US (without accrued in
tereSt) over S9.OOOOO0,OO0. there is no
intention or thought of accepting in
payment bonds other than those of the
debtor country. No authority now
asked however. covers debts owing to
us by Czecho-Slovakia. Greece, Rou-
MANIA Serbia, Poland and large
number of other countries.
"These countries also owe large
amounts 10 the other countries. Their
resources and their ability to pay
differ widely and the conditionswh ich
will have to be dealt with cannot now
be fOreseen. The situation which on
fronts the treasury is exceedingly ON
pick and To deal properly with II the
treasury must have ample powers"
Regarding acceptance Of German
bonds. the secretary referred 10 GER
tain negotiations 1T the Paris peace
conference. where representatives Of
Great Britain. France and the United
States recommended the acceptance of
German reparatiOn bonds I'm payment
of loans made by the three countries
To Belgium prior TO November IL.
+ 1918 This agreement has been before
i the senate since February 22. 1921,
and no action has been taken on it, he
said. but he was unable 70 decide
whether subsequent negotiations In
fixing Germany's indemnity and the
! German bonds 10 be taken would
lllukN AilUl II lildAlti lbi lul liiti Nbil-
SideratiOn.
I'm explaining his memorandum To
the committee. Mr.. Mellon said he
would, if granted the authority asked
obtain from each debtor nation q
statement embodying its offer in set
Element He suggested that it might
be possible to provide in the subSe-
Quent negotiations for the payment of
the deferred interest and the payment
Of interest upon interest by increacing
interest rates Of the bonds To be is
sued 10y the debtor country in SubSti-
tuition for the securities now held
This plan. the secretary said. met with
the approval OF the President and the
| increased interest rate would probably
facilitate the marketing of the bonds