Evening star., 1922-04-23
How Task Of Funding Huge European Debt
Will Be Tackled by the 7. S. Commission

Z. tions to pay. the. proposed soldiers bonus In
fact the republicans who are particularly
anxious to avoid levying any more taxes on
the American people at this time. and who also
feel that they must provide the bonus for the
soldiers. are looking with hungry eyes toward
this source of supply. But that also is
matter with which Congress probably will
have to deal:
The suggestion has been made that in the
refunding of the foreign debts the unpaid in
terest, instead of being added to the prin-
cipal. should be added TO the interest to be
paid on the bonds. by increasing the rate to
be levied. Nothing. however has been de-
termined with regard to this proposal. it is
said.
In their desire to have the allied nations
pay back the money which they borrowed
from the United States during the war; the
American people sometimes forget that some
of these allies, particularly Great Britain and
France. the two largest debtors of the United
States. dug down In their jeans to lend money
to other hard-pressed allies during the
fct Great Britain loaned total of ss.465,-
$4,000 to the allies-a almost as large
as that owed the United States by the foreign
nations. To Russia and France Great Britain
loaned in excess of 81. 900. 900 each, and to
Italy in excess of s2.S00o00. 900. France also
was a generous lender. with total of $2,717,7.
Sss.500. more than $1,000 100000 of which
went to Russia These obligations, according
to the latest information available here, have
not yet been funded and occupy a position
similar to those held by the United States.
1t was nearly year ago that the Secretary
of the Treasury took up with the President
the matter of refunding the obligations owed
this country by the foreign nations. and the
President promptly took the matter up with
Congress. 1t pointed out by Secretary
Mellon and by the President that it would be
to the great advantage of the United States
10 have these demand obligations converted
into bonds. bearing stated interest and ma
turing at set time. 1t was their belief that
it would add greatly to the regularity with
which the United States received its interest
payments. 1t was not until February 9, how
ever that the law creating the funding com
mission finally approved by the Presi-
dent Then followed the appoin tment of the
members of the commission. and the appoint
ments of two members of Congress were at
tackled in the Senate on the ground that
congressman they were ineligible to serve
But this objection was overrued, though it
caused weeks of delay
The original request of the President and
the Secretary of the Treasury that the
power of making the refunds should be lodged
in the hands of the Secretary alone. But
Congress would not agree to place such power
in the hands of one man. and the commission
plan was substituted
=. The debtor nations have some Of them re-
-Spaid little of the principal and some of the
interest on their Obligations to this country
But the repayments have been infinitesimal
as compared to the total obligations. The in
terest payments on obligations held for ad
vances under liberty bonds have totaled s454.-
600,495.62, of which more than s247,000.000 was
paid by Great Britain. and more than 1929 ,0o0,-
900 by France. The total payment of prin-
cipal on such obligations has been $162743,-
911.S5.