Evening star., 1922-04-23

o0049 The interest accrued and unpaid up TO
and including the last interest period upon
these obligations amounted to $1.17S,s79925.ss.
and with the added interest since become due
probably would total nearly $500. 600
The obligations Of foreign countries held for
advances made under the liberty bond acts
are those Of eleven countries, in round num-
bers. as follows: Belgium. $347,000.000; Cuba,
$S.575,0o0: Czechoslovakia, $61.250.000: France,
$2.S50.700.0G0; Great Britain. s4.lG6.300000;
Greece. sl5.000,0o0; Italy. sl,s4S.00o000; Ii
IBERIA, $4,000; Rumania. .s2S,200.000; Russia,
lS7.7o0.0o0 Serbia. s26,175.OOo.
With regard to the obligations held for the
sale OF surplus war materials, some OF the
same nations are debtors. and also Esthonia,
Latvta, Lithuana and Poland. The obliga-
tons received from the American Relief Ad-
ministration and those held by thu United
States Grain Corporation add still other ma
tions to the list Of debtors. as follows: Ar
menia, Austria and Hungary.
u X r X
So the World War Foreign Debt Commission
will have to deal with total of eighteen
countries. All of the obligations under ad-
vances from funds raised by the sale of lib
erty bonds are bearing interest at present of
8 per cent. and nearly all the other obligations
bear the same fiat rate of interest. though in
two or three instances the rate is per cent.
1t is well recognized that the debtor nations
are In no shape at present to pay the prin-
cipal and interest on these demand obliga-
tions. So the plan is to fund the obligations
by the issue OF bonds by the debtor nations
to the government of the United States. These
bonds, after they issued to this country,
may be held by the government sold, which
ever appears to the greater advantage to the
country. But this is question that undoubt-
edly will be discussed not alone with the
debtor nations. but also with Congress in the
event it Is. desired to arrange for the sale of
any of the obligations. Possibly legislation
H. e, l~oJ.1
would be possible to dispose of any Of the
obligations under existing law, below par
X X X X '''
In writing the law providing for the crea-
ton of the World War Foreign Debt Commits
sion. Congress took occasion to impose certain
restrictions upon the course which the COM
mission may follow. For instance it provided
that none of the obligations of country
may be accepted by this country in the place
of obligations of another country. There
talk at one time that efforts might be made
by some of the debtor nations to hand
to the United States the obligations they held
from Germany and Austria. the defeated
enemy nations, and also that Great Britain.
which loaned a vast amount of money to her
allies during the war. might seek to pass their
obligations along to the United States to cover
her debt to this country.
Furthermore. it is provided that none of
the bonds taken by this country shall bear
iheSiest 'o"Si IMAM - pet SeIit, anu tudt
none of them must mature later than June Is,
1947 The commission by the way. is to cease
to have any control over the refunded obliga-.
tions once the operation of refunding has been
completed. under the terms of the act. The
Congress had in mind primarily to safeguard
American investors in liberty bonds in some
of these provisions. and the foreign obligations
are intended of course. to be used to create
sinking fund to pay off liberty bonds How
ever. in some quarters plans are already being
y,,oHA 70 ~ ne thn.-
through the refunding of the foreign obliga-