The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-07-20
CONGRESS IS
OPPOSED TO
CREDIT PLAN
Harding and Mellon Failed To
See Present Distrust in Ask
ing Authority from Con-
gress.
SUSPICIOUS OF EUROPE
BY MARK SULLIVAN

WASHINGTON, d. c., July 20--lt
is apparent that President Harding
and Secretary Mellon, when they ask
ed congress for authority to refund
and otherwise put in definite shape
the debts owed to US by foreign gov
ernments, did not anticipate the
strong opposition that has arisen In
the senate.
What they wanted was not more
than the authority that is possessed
and exercised in the normal course
of practically every department OF the
government.
For example, there are some $780,
100000 in claims against the shipping
board. These claims Chairman Las
ker hopes to be able to settle on
basis of about so cents on the dollar
In making these settlements, the SHIP
ping board will have a free hand
Congress would hardly think OF man
aging or even attempting to review
anything so complex. 1t is quite OBJ
vious that negotiations looking to
such settlements could not be carried
on by means of debate in congress
without interminable waste OF time
and other inconvenience.
Distrust European Statesmen
The reason congress is not willing
to give the same degree of authority
and discretion to Secretary Mellon
for handling the debts due US from
foreign governments does not lie
merely in the difference between the
$500. .000. 900 involved in the case of
the shipping board and the 100000
900, 900 involved in the case of the
European governments The opposi-
ton is a fresh expression on the part
OF the senate of state of suspicion
against the European governments
which arose during the peace confer
ence and during the debates on the
League of Nations.
At the time part of the senate ao-
nuired an obsession that President
Wilson was a mere child in the hands
of what they conceived to be shrewder
foreign statesmen They thought that
President Wilson was being overcome
by men who were better traders than
he. Another part of the senate ac-
auired the obsession that President
Wilson in his anxiety to bring about
a league of nations, was giving up
ica.
Some of the senators thought he
was giving up the Monroe doctrine,
some thought he was sacrificing the
independence of America, some
thought he was promising future aid
by the army and navy of the United
States some thought he was actually
using the money in the United States
in the way of making advances to
European governments as a means OF
acquiring their assent to the league
of nations.
Recall Wilson Statement.
On this latter point the facts OF
record are that Wilson served formal
notice on the European governments
that the money owed by them to the
United States would have to be paid
and that American public opinion
would never be likely to assent tc
any cancellation or compromise.
Nevertheless, it is the hangover o!
this old and largely unreasonable sus
picion that is causing the present
trouble. 1t is suspicion and trucu
lence of which we should rid ourselves
if for no better reason, in the interes
of making success OF the new con
ference, with foreign statesman a!
our guests, soon to be held in America
The business like way to handl
these foreign debts is precisely tht
way that Mr.. Harding and Mr. Mellol
have requested, some of the European
governments are better able to pa,
than others, some of the debts will
have to be refunded for longe
period than others, and it may b
necessary to let some of the govern
ments pay a lower rate of interes
than others.
The United States is in the position
of a creditor nation dealing wit,
debtors who are seriously involved
What to do in each case involves ind
vidual discretion, and there is no pei
son better fitted to exercise that dis
cretion than Mr.. Mellon. His lifelon
business training and experience hav
given him just that equipment.
Copyright 1921 by the New York
Evening Post, Inc)
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