Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-11-21
FOR HEATED DEBATE
ION ALLIED Debt PROBLEM
se Declare Question Will
Prove Embarrassing to
Administration.
HANGING FIRE IN THE SENATE
Cause of hmm ediate Worry Is Failure
IS of Congress TO Pass Rcfundfns
Measure before Arms Conference
~ Convened.
by J. Frederick EssRry.
Correspondent OF The
Times Disputrb

- = ~ hpii Wi eS poHutItl Oh ne
Fs.sSb, Times Dispatch.
~ WASHINGTON. Nov. 20.--AlthouEh
.s the foreign debt question has been
Skcpt In the background of the dis
Il. armament conference for the time he
h ing, evidence increases daily that
5 eventually il viii become matter
sY2of serious debate and that the whole
business VIII prove gravely embar-
&frassins to the Harding adminis,ra-
ton.
The cause OF Immediate worry Is
the failure OF Congress to pass the
refunding bill. That measure is
& through the House, but hangs fire
" in the Senate as for many weeks past
4 ana inc prospect now IL tina, u WIN
y hang fire for some weeks longer at
best. Had the bill been pissed. with
Y complete power TO refund lodged in
\ the hands Of the Secretary OF the
(, Treasury. as the administration
wished. or in the hands of a commits
;.s-sfon-to be named ly the President.
ms IL later proposed. two outstand-
y ling Aprcsent immediate cmbarrass-
r,pIents could have tcen escaped
S Es ~ = Possibility af Zig Debate.
y There is the possibility of an acrim-
onious debate over the debts in the
Z Senate. with hunt references to the
IsSdcbtor nations, while the international
sconference is In session and the prot
-.-s%eil+ty, virtually Il certainty; that
( some OF the important debtor nations.
: before the conference proceeds far,
Il will insistently raise the question of
: disposition OF the debts. with the
I. strong implication that cancellation
- would be wise II the Bill were
Y through the Senate. all serious dan
= ger OF unpleasant discussion in that
s-.body would be obviatcd. and, also, tn.
ss-rAnerican delegates could smooth
tt.-<f~ay suggestions regarding the debts
with the abatement that Congress had
l--piaced the matter In the hands OF a
: commission. which would shortly un-
y. fiartake to dispose OF 1t in n broad and
permanent way.
49, Specchcs Mny Prove Unpicnsunt.
AS 1t is, there need be no surprise
= 81 within n very short time some OF
y tho Senators who have been suggest
! ing that Great Britain Is paying the
: equivalent OF bonuses TO her soldiers.
5 while she delays payment of her debt
TO this country, which has been un-
able to find money for a bonus for its
soldiers, break loose In speeches that
& would attract little attention ordl-
narily. but might prove extremely
unpleasant while the conference is in
session. There are Senators. too. who
may have something to say about
Frances great army and its cost. in
relation to her Debt. And there is no
doubt that the administration will he
pressed by foreign delegates To take
up the whole question as n matter
inseparably linked with world stabil-
ity and peace, or that such action by.
tho foreign delegates Will be sup
ported by come OF the financial lead
: ers OF this country. The conviction
liz spreading that 1t Will be almost
impossible to settle the economic tur-
: MOL of the world until the huge dctts
that are hanging In the air between
the nations are put upon some sort
of n permanent and workable basis.
and until the economic turmoil is set
tied there Will be doubt OF the per-
mancnce OF peace.
Debts Amount TO Eleven billion.
Such are the immediate causes OF
worry and embarrassment for the adj
: ministrat'on in the debt question.
7 Lying behind these is the incalcula-
lily important question Of what TO
!. do with the debts, that now amount
10 $1,000. 100000. if the unpaid in
tcrcst ia added TO the principal The
possibility OF an embarrassing debate
in the Senate or OF Soreigni. nations
\ pressing for dspc-4,iefl before the
2 administration has the legislation IL
$ wants, and at a time when II does
not want the subject raised--that is
: one thing. The final policy as 10
4 the debts is another, and the more
the political leaders and the econo-
:, mists think about IL the more obsta-
(. cies they find.
IT !s Obvious to every one that Great
3 Britain and France could not pay. on
demand. the principal and accrued In
tcrest OF their debts 10 this country.
aggreEating more than $4,000. 900 900.
either in gold or IN goods. without
topping over the already wobbly eco
nomic structure OF the world And
Y Investigation generally convinccs
those interested in The matter that IL
is by no means certain that those TWO
nations and the other ones which
arc regarded as reliable. could pay
the interest and create a sinking fund.
even on a long-terrn basis. without
cndnngerinP the chances of business
recovery IN this country and Europe.
On the total Of sll,0Si.SO2. 34l.67. to
give exactly the total OF principal
and unpaid interest. the annual Inter
est due this country is Approximately
S55o.000oO0 all OF the loans being
at ) per cent. except three. which
are at 6. II To that IS added $4,000
600 annually for Il sinking fund. the
4 total that would have TO be paid th.s
country annually would be ahaut
S76G.GO00o0
II that were paid in gold. aS some
people innoCenty seem 10 Nink Is
possible. II would drain EU-.I., which
is already suffering frr-n too little
gold and TOO much pap-s money. and
play havoc with It's cow disabled
monetary systems t!so. It would
. overload this covahry with gold
which VIII import ,bOut $4,000 600
anyhow this y"ar. 10 the discomfort
OF most ccon~nists And IL tho in
icrest and Cnking fund were not paid
1 In gold KID were paid in goods las Of
.cours- ;. would have To be. no one
see>h able to foretcll the cousc-
y Uu&nccs