Arizona republican., 1921-02-16
Member of Banking Firm and Attache of Peace Commission Says Harding Views Sane and Reassur- ing"
[RepubIIcan A. ?. Leased wirel

ST. AUGUSTINE, Fla, Feb. 12- President t-elect Harding today finally reviewed his cabinet decisions with his campaign manager and prospective postmaster general, Win H. Hays. and received from a member of President Wilson's peace delegation assurances that no agreement for cancellation of the allied war debt was made at Yer sailles.
 The conference with Mir. Hays, gen orally interpreted as conclusive evi- dence that the Republican national chairman is to become a member of the cabinet, is understood to have covered every feature of the cabinet situation. as well as questions of policy. The president-elect said their talk omitted none of the problems facing the next administration.
 Details of what happened at Yer sailles as to cancellation of the ten billion dollar war debt were given Mir. Harding by Thomas w. Lamont, mem ber of the Morgan banking firm and 8 fiscal attache of the peace commission. In a statement later he denied recent stories of a mysterious agreement to wipe the war debt off the books and said he had assured the president elect <bis administration would be las free Nand untrammelled as air.. in dealing with the question.
 Mir. Lamont's statement attracted at ttnliOu, DtteiuSt OI HIS lIlll1dtt huOWl- edge of the Versailles negotiations and because his firm is the principal fiscal agent in this country for the debtor powers Mir. Harding is understood to have discussed with him. his own pro- posal for converting the debts into ne- gotiable paper. Mir LAnsat said he found the views of the president-elect ''sane and reassuring."
 Daugherty Meeting Today
 Tomorrow MT. Harding will continue his consultation with MT. Hayes and expects also to see Harry M. Daughter ty. his pre- convention campaign man. Ager who is understood to be slated for attorney general.
 Announcement was made that the stresident- elect and Mrs. Harding would sN1Pid a reception tomorrow night to E other guests of the fashionable hotel 2 which is their home here.
 The statement of MT. Lamont. who came at MT. Harding's invitation fol-
 1T found that President-elect Hard ing wished to ask me about certain phases of the international financial situation which had come under my observation during my attendance at the peace conference at Paris in 1913. found too, that Senator Harding has been giving serious thought to the sit- uatlon and I may say that his view is both sane aul reassuring. He began by disclaiming any ability as finan- cier but must say that many Of his suggestions were vary practical anc showed the result of careful, cool ane friendly analysis.
 "I was able to assure the president elect that there is no truth in th' statement being repeated that th' peace conference there was some secre understanding between President VII son and his advisors and the F'rencl and British representatives that tn allied indebtedness to the United State should, in whole or in part. be can celled.
 Wilson Opposed Cancellation
 Tt is only fair to say that from star to finish President Wilson and his ad vsors opposed vigorously end final any such suggestion of cancellation. T repeat. there was no commitment ex pressed or implied, near or remote moral or otherwise as to the handl1n of the allies indebtedness to the Unite States.
 q was able to assure Senator Hard ing that as to his future policy in thi whole matter, be is as free and as un trammelled as air.
 "The president elect showed kee interest in the whole situation an from bis expressions, gained the idle that when the time comes for deal1n with these questions, he intends handle them with an eye to the welfar of the United States and in a lars sense. of the world generally.