Paragould soliphone., 1921-06-27
FOR REFUNDINC OF
 THE ALLIES DEBT

Washington, June 24.-Unrestrict- ed authority for the secretary of the treasury in refunding the approxi- mately 10,000,000,0 owed by the allied nations to this country was asked by President Harding yester- day in the first administration bill sent to congress
 The bill, drafted at the Treasury president to chairman of Senate and Po"ge Committees with urgent rec concentrations for enactment. Ii was introduced immediately in the Senate by Senator Penrose and com mittee hearings were ordered for next Wednesday,
 Complete power for settling with the allied nations would be vested in Secretary Mellon under the bill. With the presidents approval, he would be authorized to accept the se- in exchange for their notes. The bill also would confer unlimited au- thority to defer payment Of. interest or principal, and to settle outstand- ing claims against the United States. Announcement of the administra- tion refunding plan was made at the White House. and letter from Secretary Mellon to the president, outlining the bill, presented needs for the blanket powers requested. Citing that the treasury now was or defer payment of the allied debts and interest, Secretary Mellon said that diverse conditions required q general grant of powers to the Treasury. In this connection he said that it might be advisable, in the case of nations owing debts tO other countries, in addition to the United States, 'to consider com prehensively the entire debt of such countries, so as to work out re- funding plan reasonably within the |
 No plans for disposition of the allied securities was given by Secre- tary Mellno, Senator Penrose said he presumed they would be offered to American bankers and the public at times and in quantities without disturbance of, finance. The ad- minstration bill was received by most Republican leaders with ap- proval It was pronounced by Sena- tor Penrose to be the most inn portant" bill of the present congress. Some Democrats, however, declared they would oppose any grant of un- limited powers over the allied debts to the secretary of the treasury and intimations of a similar position were given by some Republicans,
 In the course of a speech on bonus and other legislation, Senator Borah, Republican of Idaho, referred to the foreign debt and asked if any member of the Senate Finance Com mittee expected ito see a dollar of interst in our foreign debts in 1922"
 Why, in the financial quarters which influences the foreign policy of the United States, no matter what party is in administration, he said, the proposal is now being discuss ed to postpone even the paying of interest on this foreign debt for 10 years. France. Belgium, England, have their own burdens. The sug- gestion that interest be postponed for 10 years ariss from the quarters where it is hoped that they can be kept solvent enough to pay the interest on the private debts they owe in the United States
 All sorts of difficulties appear in prospects in connection with the consideration of the bill in confer cnce. Possibility that the authority granted would permit the Treasury to accept German reparati0ns bonds was suggested by some of the 8ena~ tors. It was reported that senator Reed of Missouri is on his way back to Washington to fight the bill. Senator Reed is a mmeber of the Finance Committee. Senator Sim mons of North Carolina, the ranking Democrat on tho Finance Committee, however. indicated that he probably bo
 Harrisburg Test We'll.
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