The Washington times., 1921-02-06
Want j. S. TO
PAY WAR DEBT
All European Countries 0evis-
inp Schemes to Saddle Burden
on America, Senate Told.

Practically all the countries OF
Europe, including Germany, are
busy dsvising schemes TO induce the
United States to assume the cost OF
the war and to finance the German
indemnity, according to high Treas
ury officials.
SCHEMES WILL FAIL.
None of these schemes are likely
TO succeed. 1t is believed. as none OF
the proposals thus far been put for
ward could command themselves to
the business men OF America.
The latest proposal which suggests
an international issue OF German goid
certificate bonds to be noated
principally in the United states ana
Great Britain Is expected. Treasury
officials assert. will doubtless meet
the same fate. 1t IL proposed that
these German gold certificates shall
have claim on all future gold poses
sions of Germany. and be obligations
of the Reichsbank and other German
financial institutions.
Officials point out that Germany Is
practically stripped Of gold and would
probably have nothing for many years
with which to redeem such obiiga-
tions IL they were issued.
FLOAT LOAN IN U. 3.
Another recent proposal, said to
have emanated from British sources.
was for q huge issue of German gov
eminent securities to be hoated In
America to provide cash for payments
on the war indemnity exacted OF
Germany.
These securities. 1t was suggested.
should be underwritten by both
France and England. and to mature
over a term OF not less than nfty
years.
Overtures for cancellation of the
British and other allied war debt to
the United States were first made
.sailles, according to disclosures by
Senator King of Utah. Rejection Of
the proposition by America was
prompt, the Senator said.
20 course" he exclaimed, 'fellers'
may have been extended since, but
do not think formal representations
have been made to the Treasury De-
partmest."
LETTER BACKS STATEMENT.
This revelation came during dis
eussion of the statement by J. Austen
Chamberlain, chancellor of the Brit
ish exehequer. that the British gov
ernment had formally proposed the
remission of all allied debts to the
United States, but the suggestion had
proved unacceptable to this country.
Senator Kings statement was borne
out by a letter from the Secretary OF
the Treasury Houston to Senator
-I.~ nf Sanota nor
eign Relations Committee. 1t was In
reply to q resolution directing the
Secretary, together with the Secre-
tary Of State to inform the Senate as
to negotiations regarding the loans.
Negotiations have been undertaken
toward funding the allied debt into
long term obligations as provided In
the Liberty bond acts, the latter
stated.
For abvious reasons" it continues.
~I shall not proceed further with
such negotiations. leaving my success
sor free, IL he sees fit. to continue
them without any commitments hav-
ing been made by me-"
WALSH WANTS FACTS.
Referring to the Chamberlain
statement, Senator walsh, Of Mas
Aaohusetts, said:
'This is the first information given
to the American public that an
netual proposal was made by
debtor government to cancel her
obligations: The American people
have q right to know whether or
not such q proposal was made as
claimed by the English statesman
and IL so why we were not in
formed, especially in view Of the
propaganda spread in favor Of the
plan"
Both State and Treasury Depart
ment officials said they were not
able to nnd trace Of any such formal
proposal as that mentioned by Mr..
Chamberlain.
III the allies can make bankrupt
Germany pay $4,000. 100000 in
Aemnity, solvent England and
France can certainly afford to re-
pay the $4,000, 900. 900 they borrowed
from US, plus the interest"