The Monmouth inquirer., 1921-07-21
BRIT AIN ASKED US
TO CANCEL DEBT
Secretary Mellon Reveals Pro-
posals Made by Lloyd George
and Chancellor of Exchequer.
BOTH REQUESTS REJECTED
Chamberlain Also Suggested an All
Around NEUTRALITY-SUSPICIOUS. on
Stand at Hearing Says Ad-
vances Have Stopped.

Washington.-The mystery as to
whether the British government more
than a year ago sought to induce the
United States Government to agree
to cancellation of the interallied war
debt totaling many billions of dollars
revealed to the Senate Committee on
Finance that two such proposals were
made-the first by the then British
Chancellor of the Exchequer, Austen
Chamberlain, and the second by Pre-
mier Lloyd George in a personal letter
to President Wilson.
The disclosures were made during
the hearing by the committee on the
bill proposing to clothe the secretary
of the treasury with arbitrary power to
deal as he deems necessary with the
refunding of war debts owed the Unit
ed States by the allied and associated
governments.
Secretary of the Treasury Mellon
was In the witness chair when the
Chamberlain cablegram-a communica-
tion for r. G. Leffingwell, then assis-
ant secretary of the treasury, through
r. G. Lindsay, the British Charge
d'Affsires in Washington-and the
Lloyd George letter to President Will
son were brought to light.
Questions by Senator La Toilette Of
Wisconsin at whose request Secretary
Mellon was summoned before the coms
mlttee, developed the existence of the
or rather copies and extracts of them,
by Elliot Wadsworth, an assistant sec
retary Of the treasury, who accom-
panied Secretary Mellon to the hearing.
No effort was made by the commit
tee to obtain the replies which prob
ably were made to the Chamberlain
and Lloyd George proposals, but 1t was
indicated by Mr.. Wadsworth, In answer
to questions that there was nothing
on record In the treasury department
showing that either President Wilson
or Assistant Secretary Leffingwell had
been disposed to accede to the sug-
gestions Mr.. Wad5worth said he I'M
derst0od the proposals were not fav-
orably received by the Wilson Admin
istration.
Senator Watson of Indiana asked
Secretary Mellon the direct question IL
he favored an all-around cancellation
of interallied war debts. Mr.. Mellon
shook his head vigorously in the mega
tive.
Only part of the British chancellor's
cablegram was made public, the major
part of 1t, dealing with matters re-
garded as confidential, being withheld.
Likewise, only the extract of the Lloyd
George letter to President Wilson,
which the latter had sent to the treas
ury department, was read to the COM
mittee.
In replying, the British Chancellor
said he was not respondent about the
British situation, although it was full
of difficulty, but conceded that the
British position was profoundly affect
ed by the position in Continental Eu-
rope.
Turning to more general conditions,
ne said in that part of his message
made public: 1T is evident that finan-
cial crisis In America would gravely
endanger the incipient recovery in Con-
tinental Europe. 1t Is impossible to
foresee the consequences. With the
Continent prey to bankruptcy and
possibly to anarchy, and the United
States unable to provide credits of any
sort, owing to the internal crisis, the
worlds position would be indeed seri-
Gus. If l may venture ON what fear
is controversial ground, may say that
it is largely because of these dangers
that we should welcome general can
collation. of the government war
debts The moral effect would even
be greater political change, and fresh
hope and confidence would spring up
everywhere. The existence of these
international debts deterr neutrals
from giving assistance, checks private
credits and will, / fear, prove dis
turbing factor In future international
relations