Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1921-12-22
MAY SCRAP ALL
ALLIED DEBTS
Amount Owed u S. by Europe
ukeIyto be Cancelled, Rumor.
TOTAL ABOUT II. BILLION
Mellon Seen Behind Idea to Hand
Over Money Raised BY Liberty Loan
Issues.


Over Money Raised BY Liberty Loan
Issues.
Washington. Owing to oppo-
sition of minority members of the
senate finance committee, administra-
ton leaders have been compelled to
abandon until after the holiday recess
their efforts to put through the bill
funding the 81 ,0OtIO00,00O debt owed
the United States by foreign govern
ments.
Democratic senators, notably Sena-
tor Simmons, of North Carolina, rank
ing minority member OF the finance
committee, are unalterably opposed to
giving Secretary Mellon carte blanche
to handle the foreign debt as he de-
sires They take the position an I'M
portant governmental policy is involv-
ed and congress should at least pre-
scribe how the funding should not be
done.
At one time during the past week,
it appeared a bill would be brought
out of the committee which would be
satisfactory all around, but after a
tentative agreement had been reached
between Democratic and Republican
members, the insistence of Secretary
Mellon and the president on the adj
ministration having an absolutely free
hand brought about renewed compli-
cations. Democratic senator's believe
the administration attitude forecasts
a plan to entirely wipe out the obliga-
tions by cancellation.
There has never been a popular ref
erendum on the subject, and in view
of the fact it involves billions Of dol
lars raised by subscription to Liberty
loan issues, minority members of the
senate committee, and some of the
Republicans, believe there should be
no cancellation at this time Demo
cratic members of congress believe
Secretary Mellon may be influenced,
at least subconsciously, by the fact
he is a member of 69 directories,
some of which have loaned the govern
ments of Europe large sums of money.
y
detect a far-reaching propaganda cam
paign to bring about cancellation of
foreign debts They call attention to
the repeated declarations of Frank A.
Vanderlip and other international
bankers to the effect Europe cannot
pay. Some of the things that have
occurred in the senate finance COM
mittee recently illuminate the situa-
ton and make clearer the administra-
tons plan.
"The house BILL" said Senator Sim
mons, ''left to the commission the
questions of the maturity date of the
obligations. and the amount of interest
to be paid, and the selection of the
commission, which would handle these
matters, was left entirely in the hands
of the president. Under the provis-
ions of the house bill, the president
was free to select a majority Of the
commission without confirmation, thus
depriving congress of its personnel.
"The commission would then have
been at liberty to fix any date it pleas
ed for the maturity of it's obligations
and to charge any rate of interest it
might see fit. The house bill was prac-
tically blanket authority to the presi-
dent and Secretary Mellon for settling
the question of funding this $11 ,000,-
100000 debt, and the Republican ma
jority in the senate finance commit
tee seemed ready to accept the house
bill"
On July 81, Senator Simmons offer
ed on the senate floor two amendments
to the bill, providing nothing in the
measure should be construed as au-
thorizing or empowering the president
to cancel or remit any part Of the
obligations due the United States by
any foreign government, or to change
the rate of interest of such obliga-
lions as provided in existing law,
which was fixed at five per cent.
Also it is provided the bill does not
authorize or empower the president
to substitute the bonds or obligations
of one debtor government for another
or to postpone the interest on such
obligations after July, 1922, except the
obligations of the newly-created gov
ernments, and in such cases only with
the unconditional Endorsement of guar
anty Of such Refrigerated govern
ments.