Arizona republican., 1921-07-15

SSonUnued From Page One) reduction or cancellation of interal- lied indebtedness but that such an all around.
 Welcomes Advice
 As you know the representatives of the allies and Germany are meet ing at Geneva in a week or two to commence discussion of the subject of reparation. I recognize that in the midst of a presidential election and with congress not in session, it is impossible for the United States to deal with this question in prac- teal manner, but the question is one of such importance to the future of Europe and indeed to the relations between the allied and associated powers that should very much well come any advice which you might feel yourself able to give me as to the best method by which the whole problem could be considered and set- tied by the United States government in concert with it's assistants at the earliest possible moment that the political situation Tn America makes it possible.
 There Is one other point which I would like to add When the British government decided that it could not deal with the question of the debts owed to it by it's allies except as part and parcel of an all round arrange- ment of inter- allied debts, the chan ! cellor of exchequer told MT. Rathbone that he could not proceed any further with the negotiations which they had been conducting together with regard to the postponement of interest on the funding of Great Britain's debt to America
 T should like to make it plain that this is due to no reluctance on the part of Great Britain to fund it's debt. but solely to the fact that 1t cannot bind itself by any arrangement which would prejudice the working of any inter-allied arrangement which may be reached in the future If some method can be found for funding the British debt which does not prejudice the larger question, the British government would be glad to fall in with 1t"
 The British chancellor of the ex- chequer in his cablegram presented informally to Secretary Leffingwill by MT. Lindsay under date of Febru- ary 9. 1920:
 Fears Financial Crisis Turning to the more general con- alterations 1t Is evident that finan- cial crisis in Amerca would greatly endanger the incipfent recovery of continental Europe It is impossible to foresee the consequences. With the continent a prey to bankruptcy { and anarchy and the United States unable to provide credits of any sort owing to the internal crisis the worlds position would be indeed, serious. If may venture on what < fear is controversial ground, may l. 1o hnra11ao If fh0ao dangers that we should welcome q general cancellation of inter- govern V mental war debts. The moral effect would even be greater practical change; and fresh hope and confi- dence would spring up everywhere. "The existence of those interna- tiona1 debts deters neutrals from g1v-
 ing assistance. checks private credits
 and will, fear, prove disturbing
 factor in future international reia-
 tions."
 The treasury officials gave no tes- k timony to show whether Mr. Wilson < or the treasury replied to the two X communications and the committed
 adiourned until tomorrow after ask
 ing that treasury documents relative
 to America's loans to the allies. now
 in the custody of the senate Judiciary
 committee, be obtained.
 "Questions involved in refundine : of the foreign loans also came in fol
 discussion today on the senate flool
 in connection with debate on the sol dier bonus bill. Senator Kellogg. Re. publican, Minnesota. criticized th' Wilson administration for failure t { bring about the refunding of tn allied loans, and Senator Glass Q Virginia. secretary of the treasur. during d portion of that administra tion. declared that the United State had entered into negotiations wit Great Britain but that the latter ha
 abruptly terminated them without ex planation-