Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1921-09-07
WOULD TREAT ALL
DEBTS As WHOLE
British Want to Lump lnterallied
War Indebtedness.
ASK GENERAL REIMBURSEMENT
Proposal Is Diametrieally Opposed TO
the Views OF Secretary Mellon
London's Attitude Is caus-
ing Disquieting Effect.

Washington, Aug. 30.-The British
government has informally advised the
United States that, when negotiations
for the payment of its war debt are
resumed, IL will insist upon a general
readjustment of the interallied IN
debtedness as the basis for final
settlement, Il was learned authori-
tatively here.
According 10 information In Official
quarters. Great Britain believes that
in liquidatlng the war loans, those
made by the United States to the al
lies and those made among themselves
should be treated as a whole Instead
OF severally. Her idea, IL is said, Is
that 1t will facilitate the liquidation.
While the British government has
proposed no definite plan for handling
the war Indebtedness, the tentative
suggestion has been made that each
country issue uniform bonds to the
amount of its obligations, which would
afterward be exchanged among them
selves In final settlement.
Opposes Melon Views.
The British attitude is having dis
Quletlng effect I'm administration cir
Giles. Ii is diametrically opposed 10
that of Secretary of the Treasury Mel
Ion and severe complications between
the two governments are in prospect
II she persists In her view.
Secretary Mellon believes that the
debts 10 this government should be
handled individually without reference
10 obligations held by the allies be-
tween themselves. He also opposes
acceptance OF obligations other than
those Of the debtor country in repay
ment In the case of the larger nations
such as Great Britain, France and
Italy. As 10 the smaller governments
whose stability is not so certain he
believes IL might be well 10 take even
German reparation bonds In settle
ment.
The government was officially noti-
fed OF Great Britain's position year
ago when negotiations which had been
under way i'm London for some time
were suddenly terminated. At that
time the British premier. Lloyd George,
wrote President Wilson that his gov
eminent could not proceed TO a settle
ment unless IL was made part and
parcel Of an all round arrangement
OF interallied debts"
Lloyd Georges Argument
AS the British premier put ii, the
lnterallied Indebtedness was the
larger question" and the settlement
OF the British debt TO the United
States could not be allowed to ''preju-
dice It." II this country could formu-
late a plan reconciling the two, the
British government" he added.
would be glad TO fall In with IT,"
The Treasury department refused
summarily 10 entertain the proposal,
and the American negotiators were re-
called from London. When the adj
mlnistration changed hands and the
question Of resuming negotiations was
again brought TO the fore, II was
thought that Great Britain had al
tered her opinion on the subject. The
new administration has learned, how
ever. that II Is still the same.
According 10 treasury officials, the
advantages OF the British plan from
their standpoint are obvious. They
point out that a large share of the
money she obtained from this country
was subsequently, passed along in loans
10 her allies. They assert If she could
apply the securities she has taken for
these loans against the Indebtedness
10 the United States. the Treasury
department would eventually have Its
vaults stacked with the bonds OF half
OF the nations of the Old World. whose
ability 10 pay in many cases is serious
~ doubted.
The same situation. treasury off,
cials declare. Is true Of France and
10 some extent Italy. Finally. they
assert. II would mean that all this
country would have 10 show for the
S1OOO0OOO.OOO II loaned abroad dur
inc the war would be the questionable
securities Of a lot Of small nationali-
ties. 10 which the principal allies lent
money. instead OF their bonds. whose
value Is unchallenged.