The Washington herald., 1921-07-29
PLANS OF MELLON
QUIETS OPPONENTS
ON FINANCE BODY.
Says U. s. Is Committed
to Pestponement of
Interest.
KILL AMENDMENTS
Each Nation Must Tell Of
Plans to Pay
Debts.
KILL AMENDMENTS
BY JOHN GLEIssNER,


The administration. IT Is now IN
dicated, has won its fight for
blanket authority" to fund the
debts of foreign governments.
The Senate Finance Committee
yesterday voted to report out the
administrations bill with single
amendment, which would limit the
funding operations to five years.
The opposition of the committee
was quieted by information which
Secretary of the Treasury Mellon
submitted on his funding plans and
the extent to, which the United
States is bound by previous nego-
tiaions.
Count on 1Regulars.-
The fight on the measure will be
transferred to the floor. but Repub-
Iiean leaders count on the "regu-
lar majority to put through the
bill. in spite Of the opposition. Sena-
tors La Toilette and Borah. among
the Republicans, will seek to i'm
pose restrictions. They will have
the aid Of Senator Reed, Senator
- Walsh. Of Massachusetts,, and other
Democrats.
In a letter to Senator Penross,
chairman of the committee, Mellon
said this government had been COM
mitted to a postponement of interest
for two or three years, of which
more than two have elapsed. He
said. furthher, il had been under
stood no interest was to be charged
on this deferred interest-amountin
to 1000 900. 900 at this time,-but
that IL was to be added to the prin-
cipal. The United States agreed, Mel
Ion said, to accept German bonds for
Belgium's Indebtedness. but he was
not able to say whether this would
be a matter for further considCra-
ton" There is no intention, he de-
clared, of accepting bonds of other
than the debtor nations.
Would Broaden Treasury Powers.
The Secretary urged that broad
powers be granted the Treasury.
| The situation which confronts the
Treasury is exceedingly complex
said he, and to deal properly with
it the Treasury must have ample
powers to enable IT. when the condi-
tion of each debtor country has been
definitely ascertained. and the claims
of all parties interested have been
presented, to deal with the situa-
in its Judgment, best protect the in
terests of this country and secure
the payment of the principal and
interest of the debts"
Mellon said he would ask each
debtor nation to submit a statement
telling under what terms it could
pay, and what arrangements it de-
sired He would start funding ne
gotiations, he said, with Great Brit
ain. the principal debtor, and nego-
tiate with France and the other ma
tions thereafter Interest collec-
tions, Mellon said. might be deferred
for some time to come. though
not necessarily until April % OF
next year. the date agreed upon in
the understanding" Mellon said
the United States is under no OBJ
LEGATIONS as a result of the Rath-
bone-Blackett negotiations of 1919
Defeat Walsh Amendments.
The committee declined to adopt
wo amendments to the administra-
ion bill offered by Senator Walsh.
bf Massachusetts The first would
have compelled Mellon to submit to
he Senate any agreement reached
before it was ratified: the second
provided for submission after rati-
hcation. The vote on each was 10
o 4, Senator La Toilette voting
With the Democrats. The final vote
bn the bill was 9 to 5, Senators
simmons. Walsh, Reed and Gerry,
democrats. and La Toilette, Repub-
lean, voting against it. Senator
williams. Democrat, voted with the
Republicans
Doubt exists as to when the bill
will be considered in the Senate.
leaders, are expected to make an
fort to bring II up at once, but
is questioned IL this can be done
ecause of the preN of other bnsi-
ess. and the impending recess. As
he measure was not included in a
legislative program adopted by the
teering Committee. its adoption
bay wait until the regular session
\ December.