Alma record. (Alma, Mich.) 1878-1928, 1921-12-22
PLAN REFUNDINC
FOREIGN DEBTS
GOVERNMENT LAYING PLANS
TO SECURE REFUNDING OF
FOREIGN DEBTS.

W dSnlnRtOn, Zee. 81 ne blll CIV
ating the foreign debt retunding
commission will soon De enacted by
Congress, and the commission with
the Secretary Of the Treasury as its
chairman will turn its attention 10
the enormously important work be-
fore il. believing il the duty Of all
good citizens 10 study the problems of
government, and make constructive
suggestions whenever the occasion
warrants" says the Republican Pub
Hcity Association, through its presi-
dent, Hon. Jonathan Boune, Jr., I'VE
present a comprehensive and appar-
entity feasible plan for handling the
principal OF the foreign Indebtedness,
and invite discussion as 10 It's sound
ness and practicability."
In brief" continues the Associa-
ton, "the proposition is to ask of each
debtor nation an equal annual pay
ment for fifty years, so arranged as
to amount that at the end of that
period both principal and interest VIII
have been paid in full In the sche-
dule Of payments presented herewith
interest is computed at IA per cent.
That is the average OF the rates
borne by the various issue Of Liberty
Bonds. The money loaned abroad
was raised through the sale of those
bonds, and il would seem to be no
more than fair that the interest re-
CURED from the borrowers should not
exceed the interest paid on the Lib
orty issues. despite the fact that the
temporary certificates of indebted
mes held by the Treasury call for a
five per cent rate.
Most of these debts are two years
in arrears of interest. making the
total interest now due amount to
atoa q billion and quarter dollars.
'ia. factor il not considered in this
.a bat l. should be comparatively
;lpe spread the back interest
pat-n .ut over a period OF years, and
thus make the burden as light as
pos mic for the dcb.2r nations to
boal. Il is understood that certain
of those countries desire even a fur
thcr extension Of interest payments.
. nat is included in he scheme here
with presented Il will be noted
that the annual payments required
90 not even equal the accrued in
teIcst until the end Of the second
yoal. Such consideration ought to
be all thai any DEBTOR nation could
ask.
Announcement .ecently came
from Great Britain that she had
made arrangements for "a annual
interest payment Of fJOOO0,OOO en-
hcr obligations to the United States.
BY reference to the table below it
will be seen that the annual pay
nent necessary, to liquidate both
principal and interest of the British
debt in 30 years is only S173, 100000,
which, az the normal rate of eX-
change is about s35, 100000. Evil
DENLY &C arrangement applied to
the British debt would be far mere
advantagcous TO Great Britain than
the plan Of payment she has herself
suggested.
Assuming that all nations agreed
10 the scheme, and honorably met
their obligations each year, there
would be an annual income to the
United States Treasury from that
source Of about $420,0O0,000 That
Is not as much as even thc annual
interest now accruing AT the rate of
over S500,000,000 a year, but il
would seem that the Unuited States
can well afford TO forcgo present
high returns for The added advan-
tage Of having a specific scheme e
payment subscribed to by all
"The debt of each country could
readily be represented by serial
.rnds. OF such denominations as to
be -slable in the bond markets Of the
world There need be 10 disturb
ance of values by such sales, as the
bonds could be held in the Treasury
and offered to The public emily al such
times as are deemed propitioua.,
There are no apparent disadvantages
that the plan holds for either debtor
on creditor, but the many benefits
that would flow 80 each from its
adoption are at once seen.
Statement of foreign debts at the
end Of the fiscal year, June 80, 1921,
with the annual payments necessary
TO retire ell of them, including both
prir 'ipal and interest at "A per cent
in 80 years:
Debtor Doh; Annual Payment
Ammonia S.O2S4f215 S 33A5e6 90