New-York tribune., 1921-02-08

Refuses Details, Saying
He Is Not Fully In
formed, as McAdoo Han
died Early Negotiations
Will Again Face
Senators To-day
Paid So Millions to 9th
ers for Russia; 1t Owes
America 1877 Millions
From, The Tribane's washington Bureou

WASHINGTON, Feb. 7.-Admit.ing
to the Senate Judiciary Committee chat
one Allied government had proposed
the cancellation of its debt to this
country, Secretary Of tho Treasury
Houston to-day refused to say what
government it was, or give any de-
tails. The Secretary persisted in his
refusal when it was suggested he might
prefer to speak in executive session.
Secretary Houston gave as mis- rea-
son the fact that he was not in pos
session of all the, facts, and that he
was preparing to go before the Foreign
Relations Committee tomorrow to
make a statement with respect to the
loans and matters connected Herewith.
Much of the loan policy was de-
clded on by Mr.. McAdoo as Secretary
OF the Treasury, cooperating with ,the
State Department. Democratic Senators
friendly to Mr.. McAdoo are obviously
not eager to bring out anything which
could be construed as criticism of him.
In going before the Foreign Relations
Committee tomorrow, Secretary Hous-
ton will give Senators, in secret. de-
tails with respect to the Allied loans
and negotiations for refundinp which
ne ooes not want to make public, and
VIII endeavor to set himself right with
the committee. as to the reasons why
tn exchanges between this country and
other powers apropos of the loans
should not be given publicity.
Fits Into Chamberlain Speecb
Although Mr.. Houston to-day re-
fused to go into details about the
proposal for cancellation of debt, his
statement closely fits in with the re-
cent statement of j. Austen Chamber
lain British Chancellor of the Ex
chequer, that proposal was made 10
tEls country for cancellation of debts
of the Allies, but that it did not
meet the favor of the United States.
Inc Secretary in his reference to can
ccellatlon was understood by some of
those present to refer to more than
one country as proposing such cancel
lation. The official record, however. in
dlcates chat he referred to one country
Secretary Houston was before the
committee in connection with the Reed
bill, which would repeal authority for
foreign loans and would prevent fur
ments. P'
The Secretary took the position that
Section of the Second IibertV ,na,
act allowed the Treasury Department
to accept short-time obligations in
stead OF permanent longtime obliga-
lions TO secure loans. Senator Hoke
smith, OF Georgia, insisted this was
not the law. Secretary Houston said
as he has already written Senator
Lodge, that he did not intend to make
any further commitments or attemnt
TO complete negotiations for refunding
OF the foreign debt. At the same time he
SAID ne would make advances to foreion
governments in cases where this GOV
ernnent had already made commit
ments provided he were called on to
40 SO. Inc Reed measure is aimed in
pa part at TINS and Senator Reed objected
Unpaid Credit Balances
what is the total of these possible
Kellogg. 0eA"eor
Possibly s75,ooo,ooo," said .be Sec
lIre,tary, but none to Great Britain.
Ihere are the following approximate
crealt balances aIa existing: Czecho- Slo-
GREECE, $33,236,0 900; Italy, s34 921 900.
and Liberia, S4,974,O0O. They have ali
been set out in my annual report"
senator Reed said Congress ought to
prevent further loans by law because.
while Secretary Houston had promised
not to make any, his successor might
take different view. Secretary Hous-
ton and Assistant Secretary Kelley said
number of the foreign governments
had not paid their interest. Senator
Reed asked if the Secretary thought it
Justifiable to pay money to govern
ments that already owed much and did
not pay interest. No reply was made.
Secretary Houston said commitments
had been made to Greece amounting to
100000 francs in pursuance Of a
contract under which Greece, France
and aa6 Great Britain each was to get 250.-
100000 francs.
Asked by Senator Reed for a copv
OF this contract, Secretary Houston
said some of these matters might be
disclosed when he appeared before the
Foreign Relations Committee, but he
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