The New York herald., 1921-02-13
BRITAIN PROPOSED
TIME AND AGAIN TO
CANCEL WAR DEBT
Secretary Houston Confirms
Report Of Efforts to Have
US. Wipe Out Allied
Obligations.
REFUSAL COMMENDED
Repeated Requests Believed
Based on Promise Said to
Have Been Made by Will
son in Paris.
FRANCE FAVORED SCHEME
Secretary of Treasury Tells
Foreign Relations Commit
tee Of Official Proposition
Received From British.
6pecioI Despatch to THE New YORK HERALD.
New York Herald Bureau,
Waghinct0n ID. O.. Feb. lg.

New York Herald Bureau.
Washington. ID. c.. Feb. l2.
Secretary of the Treasury Houston
confirmed to-day the statement made
by Austen Chamberlain. Lord Of the
British Exchequer. that Great Britain
has officially proposed to American
officials cancellation of the allied debt
to the United States. His information.
was given in executive session to the
Senate Committee on Foreign Eela-
tions, before which Mr.. Houston ap-
peared at his own request.
Outside the hearings to-day there
was a revival of the report that Presi-
dent Wilson had promised at the Paris
peace conference that after the treaty
had been ratified by the United States
Senate he would do all he could to
bring about cancellation of the inter-
allied debt. In some quarters this was
offered as an explanation OF why
Great Britain was willing TO have the
League of Nations covenant ratified
with reservations and as reason for
her later proposals for cancellation.
1t was further developed that these
proposals by Great Britain have been
rejected by American officials whenever
they were made. Secretary Houston
told the committee II had been sug-
gested not once. but several times, and
at least once during the time the pres
ent Secretary has been head of the
Treasury. MIR. Houston, following the
example of his predecessors, declined
to consider cancel atlon.
Suggested at Peace Conference.
II is already known that suggestions
OF cancellation were made at the Paris
peace conference and that France was
one of those who favored such can
collation.. 1t is understood that Secre-
tary Houston did not refer to any pro-
posals for cancellation of the debt made
by other allied nations. his admission
being confined to the British proposal
made to him and others who preceded
him as Secretary of the Treasury
Most OF the members of the Foreign
Relations Committee who would dis
cuss to-day's testimony expressed them
selves as being satisfied with the con-
duct of the foreign loans and credits
by Secretary Houston. Senator Lodge
(Mass.), chairman Of the committee
said Mr.. Houston's report was "emi-
nently satisfactory" to him. Opinion
Is unanimous in the Senate against can
collation. of the debt owed TO the United
States by the allied nations, and this
was reflected more clearly to-day upon
the disclosure by the Secretary that
he had refused TO consider cancellation
Senator Hitchcock (Neb.), formerly
chairman of the committee, said "he con-
sidered Mr.. Houstons handling OF the
loans and credits very satisfactory"
HE told us that he had advised the
British Government that It would have
to pay" Senator Hitchcock admitted,
"a course which approve
There Is "a division OF sentiment I'm the
Senate and. In fact. I'm the Foreign Re
lations Committee as to whether or not
Secretary Houston shall make further
advances of credit balances now ex-
lsting In favor OF the nations of France.
Italy, Czecho-Sovakia, Greece and
Liberia. Total existing credit balances
for these nations are approximately
S75.000,000. Secretary Houston already
has informed the Senate Judiciary Com
mittee, and also told the Foreign Re-
lations Committee to-day, that ne had
made certain commitments as to theso
balances and that IL called on by ma
tions with which Understandings have
been made he would make further adj
vances before his term expires March 4.
Senators Oppose Advances.
The making Of further advances on
this basis Is opposed By number of
Senators. Senator Borah fIdaho) OF the
Foreign Relations Committee and Sem
ator Reed (Mo.) OF the judiciary Com
mittee among them.
'T am certainly opposed 10 Tho Secre-
tary being allowed TO make further ad-
vances." said senator Borah. II in
dorsc the efforts OF certain public spir-
itod inen TO prevent the Secretary from
continuing 10 make foreign advances OF
credits or other commitments. | hope
further Hight VIII be thrown on the sub
ject FOR it Is Information that Il seems
the American public Is entitled Co have"
There is stu pending before the Ju-
dietary Committee tho resolution OF
senator Reed to prevent the making OF
further advances bv Secretary Houston
or his successor. Further hearings are
schcduled on this resolution next week
and Senator Reed hes stated that he
proposes TO have action in the Senate.
Also he has announced his intention of
making cpecch on tho subject