South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-07-19
CITE REFUSAL OF
WILSON TO CANCEL
ALLIED WAR DEBTS
Former Presidents Letter to
Lloyd George Made Pub
lie for First Time.
BY Associated Press:

by Associated PresS.
WASHINGTON. July IS .-Pres't
Wilson wrote Premier Lloyd George
OF Great Britain last October that
it was highly improbable that eth
er the congress OF popular opinion
Of this country will ever permit a
cancellation of any part of the debt
of the British government 10 the
United States in order 10 induce the
British government TO remit in
whole or in part the debt to Great
Britain or France or any part of the
allied governments"
An excerpt from Pres't Wilson's
letter, replying TO one written by
the British prime milister two
months previous in which reference
was made to suggestions that the
inter-allied debts be cancelled. was
made public Monday for the first
time through instruction in the con-
gressional record by Sen. Lodge.
Massachusetts,, republican leader Of
the senate. Mr.. Lodge explained
that il was submitted to the foreign
relations committee of which he is
chairman by David S. Houston. sec
rotary of the treasury under Mr..
Wilson.
The British premier further was
informed by Pres't Wilson chat it
also was highly improbable that
either congress or the American
public would consent TO a cancel
lation or reduction in the debt Of
any Of the allied governments as an
inducement towards a practical set
Element OF the reparation claims"
Mr.. Wilson pointed TO past rejec-
tons Of the suggestion OF inter-gov-
ernmental debt cancellation, and
added:
The views OF the United States
government have not changed and Il
| is not prepared TO consent to the re-
mission Of any part Of the debt Of
Great Britain TO the United States
Warning that the long delay
which has occurred in the funding
OF the demand obligations is already
embarrassing the treasury which will
find itself compelled TO begin to col
lect back and current interest if
speedy progress is not made with the
funding" Mr.. Wilson stated that un-
less funding arrangements were
agreed upon. "in the present state Cf
opinion here there is likely to de-
vclop a dangerous misunderstano-
/ ing"
The making pubic OF the Wilson
letter was only one development in
the allied debt situation during the
day.
Sec'y Mellon appearing before the
senate finance committee TO urge en-
actment of the administration 10
confer broad powers in debt refund
ing. was told by Sen Curtis Of Kan
sas a member Of the committee and
republican senate whip, that repub-
lican and democratic senator's alike
had stated that they would not vote
for a refunding bill which did not
require the settle ments 10 be report
ed TO congress for ratification. Mr..
Mellon said cit would be illogical" 70
amend the bill so as 20 limit the
treasury's authority.
sen. Rorah. republican, idaho. on
the senate floor criticized the treas
ury's payment last week TO Great
Britain OF thirty-two million. six
hundred lightweight thousand dol
lars on a shipping claim while that
nation owed the United states sew
ersl billions. Sen. Borah said nc
could observe eagerness'' by Great
Britain 10 press collection OF debts
from the United Ststes and said the
situation was "a remarkable exhibit
ton" by Great Britain.