Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-02-22
| u. S. WOULD ACCEPT
PREPARATION BONDS
| FOR FOREIGN DEBTS
High Officials Are Giving
Matter Serious C0nsid-
Grafton, Is Report.
REMAINS FOR HARDING TO
ACCEPT THE PROPOSAL
Use These to Retire Liberty
Bonds After Guaranteeing
Principal and Interest.
MUST BEAR PER CENT
Nothing VIII Bc Added To Risk OF
This Government or Of
Allied Powers.
REMAINS FOR HARDING TO
ACCEPT THE PROPOSAL
MUST BEAR . PER CENT
Nothing VIII I,c Added Ia Risk OF
This Government or Of
Allied Powers.
nY J. FREDFRICK ESSkHN.
" Arlington COrrrs rspo d cnt The
Times I)ispntch.

WASHINGTON. Web. 2i.-Consid-
ration - being given Ia hig official
circles Of Washington 10 propOsal
mat German rcparation bonds. hear
ing per cent interest. he delivered
ny III" allied governments to the
United states In paym"n: Of Amcri
can loans abroad. the German sccuri
ties. in turn. being used TO retire
Liberty bonds. after both principal
and interest had been guaranteed by
tnis government.
Information as to tho essential de-
talls of ;his broad pIan TOR rradjlst-
nag International Indebtedness. has
lust come TO The Times Dispatch cor
respondent from sources Immediately
IN contract with :hc enterprises. and
while IL wouid be prcmatur. to say
tna' the incoming administration is
n any sense committed to Il. il can
be stated that II IL being b-oueh, to
he immediate attention Of President
Elect Harding.
For weeks. even months. tho whole
question of dealing with internatlOn-
s,g Indebtedness. on III" one hand. and
the heavy interest paid 10 domestic
oondholdcrs by the government. on
ihe other. has been matter of wor-
led consideration IN Washington.
Nnr, has any constructive program
;or meeting these problems been ac-
'ually adopted by either the outgo-
ing or the incoming administration ::
certainly nonr has been conhded to
inc country.
II now appears. however. that pro-
'pLnd students OF 'te problem ha ;.
evolved a. least one concrete pro-
ppsai. proposal which may be- made
10" basis OF early negotiations with
iiied powers. ], only remains for
'ir Harding to adopt II as n policy
iE order to bring IL 10 point o.
diplomatic conversation. And ne will
R, urged to lose no more time than
IS absolutely necessary In pressing II.
.,ftcr the London conference show.
whether or not Germany accepts the
findings Of tho reparations commits
zion.
Assuming that Germany cithc- 'ac-
ccp;s ihesc findings or a compromise
amount OF indemnity. yet to he ar
rived at. the proponents OF the plan
OF read5ustment now under consider
required to cover the amount in ques-
ton by an issue Of gold bonds. 10
mature upon dates from 80 10 SO
years.
These bonds will be allocatcd TO
the various governments sharing in
the indemnity. including Great
Britain, France. Belgium. Serbia. Ru-
mania. Czecho-Siov and Poland
Each of these governments is deeply
IN debt to tho United States. the total
amount of that Indebtedness approxi-
mating $4,000. 900. 900.
Under the rcadjustmen, plan now
developed. il is proposed tha, each of
the governments to which America
loaned money for war purposes. in
dcrsc over TO the United States
German rcparation bonds in tho cx-
act amount OF their Indebtedness to
the United states. giving their guar
antec that both the principal and in
tcrest Will he paid
In this fashion. each Of the allied
governments VIII free itself Of in
debtcdncss to the United States, pro-
vidcd of course that Germany does
not default Should Germany de-
fault. this government will call upon
interest or principal, Meanwhile
however. Great Britain, France. Bel
gium and the remaining nations
would. IT is pointed cut, be relieved
sr,l