Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1921-02-08
British Plan to
Cancel Loans is
Still Mystery
Secretary Houston Refuses to
Divulgc to Senate Com.
mittec Details Of
Financing.
By ARTHUR SEARS HENN1NG.
Chicago Tribune Omaha Bee Lensed Wire.

By ARTHUR SEARS HENNING'
Chicago Tribune Omaha Bee Leased wire
| Washington, Feb. AFTER grill.
ling Secretary OF the Treasury Hous-
ton for several hours the senate
judiciary committee met with conf
plete failure to clear up the nlys'
terry of Great Britain's' proposal tc
the United States that war loans
among the allied and associated
nations be cancelled.
Mr.. Houston declined to inform
the committee and refused to sub
init foreign loan contracts and docu-
nents bearing on the negotiations to
refund the American loans to allied
nations. He will appear tomorrow
before the foreign relations commit
tee which is seeking the same i'll
formation.
Admits Getting Proposal.
When the secretary was asked
Ewhether any proposal to cancel
loans had been made to the United
States by any nation he replied:
Zone nation made the request"
"What nation?" asked Senator
Reed.
Il prefer not to say replied Mr..
Houston.
Senator Reed insisted upon a re-
ply but the secretary again refused,
saying he did mot care to go into
that today" Senator Reed then
proposed that a subcommittee be
sent to the treasury department to
examine all records pertaining TO
tho loans but he did not press the
suggestion. The State department
also refused to throw any light on
the loan cancellation proposal.
Mr.. Houston appeared before the
Judiciary committee to be heard ON
the resolution of Senator Reed which
questions the. legality Of administra-
tive acts of the treasury already per-
formed in making foreign loans, and
to prevent further payments on
foreign credit balances.
May Pay Out More.
Secretary Houston said he had
already written, to Senator Lodge
that he would not make further
Commitments" for advances to for
eign governments or attempt to COM
plete negotiations now pending for
the refunding of the foreign debt.
He does intend, he said, to
make further advances to foreign
governments to which he already
has Committed" this government, If
called upon to do so. As this is one
of the things the Reed resolution
and others arc trying to prevent, the
Missouri senator criticized the policy
severely.
"Do you mean that you will pay
out more money" asked Senator
Kellogg. What is the total of these
possible further paymentss"
Possibly S5,O00,000," replied the
secretary, "but none to Great
Britain. There are the following
approximate credit balances existing:
ho-Slovakia. $6,072,000; France,
$50, 10000; Greece, $33,236,OO0;
Italy, $34,o21, 900, and Liberia,
S4,o74,00O."
Interest Not Paid.
Assistant Secretary Nicholas
Kelley, who was present, admitted
that many OF the foreign govern
ments had not paid the interest on
what they owe to us.
DO you think it justifable 10 paw
money out of these credits to gov
erninents that already owe us large
sums of money" asked Senator
Keed. There was no direct reply to
this question. 1t was explained some
commitments had been made TO
Greece. totaling 25,0OO,0OO francs.
l1h1s, the secretary explained, was
IN pursuance of contract under
which, the governments of Greece.
france and Great Britain were to
advance 25O,OO0000 francs each.
Have you copy of that contract
ana will you furnish it TO us?"
asked Senator Reed.
/! do not think it ought to be
made public" the secretary replied.
+ have already agreed to appear be-
1ore the foreign relations committee
IN executive session when some Of
these matters may be disclosed. But
| think it would be very unfortunate
to make them public"
Senator Smith asked if either
France or Italy gave their perma-
nent obligations for money they
have received.
Discuss Russian Losses.
They have not" tn. secretary
said. 1t was contemplated origin
ally that their, securities should be
in permanent form, but for reasons
this could not be done and short
term securities were accepted. with
the understanding that they were to
be converted into long time obliga-
t!ons. This is one reason for the
pending negotiations"
Legion Troops Refused
Il. y 4 q