New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-16
u. S. VIII Not
Defer British
Debt Interest
Continued from page ons)

pected. He said Armeniae owed the
United States government $4,000, 900 for
supplies furnished in the war period.
He said further that hope of an imme-
date payment had been given up. The
present Armenian government has no
mailing address," the Secretary ex-
planned
Senator Simmons inquired if Secre-
tary Mellon could conceive of any stu
alton in which Great Britain would ask
deferring Of interest for fifteen years
which would receive his serious consid-
Grafton.
"Such situation is Uncomfortable, !"
answered the Secretary.
Secretary Mellon told the committee
that he was unoffcially informed Great
Britain was considering early payment
of the accrued interest on her debt to
the United States.
81 do not think Great Britain is 60
ing toaask for any further deferment of
interest" the Secretary added.
Senator Simmons observed that the
Secretary, in the pending bill, was ask
ing for very broad powers, and he in
quired whether he would consent to
Hdefer interest payments if granted
such authority.
Some substantial reason might arise
why interest should be deferred" re-
piled Mr.. Mellon. 81 do not know The
rate of exchange has a great deal to
do with the situation. Fluctuations in
the rate of exchange might make it
advantageous for this country as we'll
as for the country asking for it to
grant deferment of interest. But
there is nothing in the situation now
to lead me to believe that such re-
quest is Immediately likely 1t must
be borne in mind that world economic
and financial conditions are such that
the situation might be further aggra-
waited if payment of principal or inter
est were forced or exacted at this
time. 1t might result in an embargo
against American exports which would
vitality affect the economic and financial
STABILITY OF our own country"
1t was disclosed in the course of the
hearing that this government may lend
Liberia S5,O00,000 in order to prevent
valuable concessions there from falling
into the hands of the British and
French. A bill to authorize such a.
loan has been prepared and is in the
hands of Senator Penrose of Pennsvl-
vanla, but he said he would not offer
1t until he had conferred further with
the State Department, which has con-
Quoted the negotiations.
Liberia to Get s5,Ooo,O0o
Senator Watson, Of Indiana, told the
committee about the proposed loan.
He said he learned of it in CONVEX
sation with Secretary of State Hughes
yesterday. Liberals S5,OO0,O00 war
credit still stands at the Treasury De-
partment except for such advances as
were made to pay expenses, of the lii
Dorian delegation to the peace confer
ence.
II learned that this incident is. closed
and that there will be no more MONEY!
paid out on this war credit" said Sena-
tor Watson. But | was informed that
the State Department has agreed to
make new loan of S5,0000o0 to Lii
terra to protect and retain certain
valuable {, commercial privileges which
VIII fall into the hands of Great Brit
ain and France if we do not act.''
Senator Watson defended the promo
sition, said it. was purely business
matter and that the State Department
regarded 1T as essential if America were
not to lose her valuable interests there
IL IS plain, however, there will be
strong opposition to it in Congress.
No action was taken by the Finance
Committee to-day on the bill relative
to refunding the foreign loans. The
committee will meet again on Monday.
Senator Penrose hopes to obtain a IA
yorable report on the measure the com
ing week
Senator Carter Glass, of Virginia.
former Secretary of the Treasury, de-
clared in debate in the Senate TO-DAY
over the loan situation, that he had
written to the ministers of finance of
all the Allied nations, vetoing Allied
suggestions that the loans be cancelled
nc quoted from his message, which
notlfled them that the American Treas
ury was disposed to suspend extension
o. credits to nations taking part in any
discussion looking to the writing off,
Iehsollaatlon or reapportionment of
loans from the United States.