The Washington times., 1921-03-05
DEBTS |SF|RST
MELLON TASK
New Treasury Head Considers
Plans for Reducing Allies
Obligations.
BY w. X. ATKINS.
Interust tioasI News Service.


Europs's $4,000, 100000 debt to
the United States was at the top Of
THE calendar today As one Of the most
urgent problems pressing for adjust
ment under the new Administration.
This vital question, together with
others of great moment. today cop
fronted the new Secretary of the
Treasury, Andrew w. Mellon, when
he took over the affairs of office.
Secretary MELONS first day was de-
voted partly to q study Of the debt
matter.
DISCUSSED LOANS.
Secretary Mellon. In = series OF con-
ferences with David r. Houston. the
retiring Secretary. and with other Of
ficials. was made conversant with tho
status of the foreign loans. and went
at some length into the various phases
of negotiations previously begun by
foreign governments relative to the
funding of the outstanding obliga-
tons.
President HardinS's inaugural ut
tersncs indicating that suggestions
for cancellation of the debts will meet
with rejection apparently started the
new Secretary Of the Treasury upon
. clearly defined policy. &.
Secretary Melons conferences to-
day were largely to enable the new
Treasury head to get q grasp OF the
problems with which he must soon
grapple. It 10 probable that he will
continue in conference for several
days with former Secretary Houston
and others who have been actively
identifies with the loan and other
problems.
HAS ALLIED PLANS.
The plans Of several OF the foreign
governments to enter At once upon
negotiations looking to the conver-
sion into long time obligations of the
demand notes now held by this Cow
ernment were before Secretary Mel
Ion today. The British French and
Italian governments have notified the
Treasury Department Of their Will
ingness to begin conferences in the
very near future.
At the Treasury today 1t was sug-
gested that conferences with the
foreign financial envoys probably
would not be commenced until the
whole question of debt settlement
terms has been discussed by Presi-
dent Harding and his Cabinet.
= In what respect the previous plans
of the Treasury might be changed
was left to conjecture. Tho probality,
It was said. was that entirely new
discussions would be inaugurated,
without reference to any tentative
understandings which may have been
reached previously between represen-
tatives of this and other govern
ments.
HOUSTON TO ASSIST.
Thus far the general outline of the
plan for adjustment of the foreign
loans has been to fund them into obli-
cations with maturities running as
far as thirty years. with a reasonable
defferment of the interest for period
of years. pending Europe's rehabili-
tatior.
No oficial announcement ever was
made by the Treasury of any agree
ment relative to the rate Of interest
the longtime bonds should bear,
though 1t was suggested that the
Treasury's purpose was to make the
rate equivalent to the rates borne by
United States Government bonds.
Former Secretary Houston today
said that he will hold himself in
readiness to assist his successor in
all matters which may arise relative
10 the loan and other questions,
which are at the forefront demanding
consideration. Houston will post
pone for several days his departure
from Washington.