The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-01-24
FIGHT OVER DEBT
REFUNDING BILL
BREAKS In SENATE
North Dakota Senator Asks
United States to Be Lenient
i'm Dealing With Allies.
OPENING STATEMENT
ONLY IS COMPLETED
Minority Attack VIII Open To-
day and General Debate
VIII Follow.
fRx The Asaoe1ased Pressl

WASHINGTON, Jan. 23-The fight over
the allied debt refunding bill broke today
in the Senate, with Senator McCumber.
republican, North Dakota, in charge of
the measure, pleading that the United
States mot play the role of ShyloclI in
dealing with its allies and the demo-
Gratis opposing the proposed grant Of
authority to the debt commission to fix
the time when interest payments shall
begin
The first days consideration of the
measure saw only the completion of the
opening statement by Senator BIcCumber,
as chairman of the finance committee,
who was subjected to a rapid crOss-fre
from the minority side.
Tomorrow Senator Simmons of North
Carolina, ranking democrat on the finance
committee, will open the minority attack
and general debate will follow. Repuo-
lican leaders hope to press the bill TO
vote by the end OF the week
Discussion today covered wide range,
including use of proceeds from the re-
funded bonds to pay the soldier bonus,
the ability of the debtor nations to begin
paying their interest and the plans Of
the administration with respect TO the
sale of some of the refunded obligations
in the United States. Pleading for broad
authority for the commission in conduct
ing the refunding negotiations, Senator
McCumber said he could conceive Of a
situation, where it might be desirable
to agree with debtor nation to fix the
interest rate on the bonds high enough
to cover during the life of the bonds,
the accumulated interests.
Such a plan was opposed by Senators
Simmons and Lenroot, republican, Wis
consin. The former said Secretary Mellon
| had informed the financfi Committee that
| President Harding had approved this pros
posaI as means of making the foreign
bonds the more readily saleable in the
United States He added that "--'~-'s
obligation was that ii the refund bonds
were sold at par the United States would
lose all the deferred interest while the
purchasers of the bonds would receive it.
Senator McCumber gave it as his opin-
ion that none of the proceeds from the
refunded foreign debt would be available
for the soldier bonus until within one
year after next July /, the date on which
republican leaders have said the bonus
would be made effective. He thought that
Congress should provide some form of
special taxation to cover bonus payments
for the one year and then authorize the
sale of a sufficient amount of the bonds
to take care of succeeding yearly bonus
expenses if the interest from the foreign
debt should not prove sufficient His
estimate was that for the first year the
bonus would cost s300.0000 900.
Objecttng to writing into the bin a
provision fixing any definite time for be-
ginning interest payments4 Senator
McCumber said that if the time limit
was made three years. for instance. all
of the debtor nations, irrespective Of
their ability to pay, would press for de-
ferment of interests for the maximum
period. Some nations, he said, would not
be able to pay for several years, adding
that the commission should have author
| ity to determine the facts as to the
| financial conditions of the various coun-
tries and then determine the time limit.
Pointing out that the secretary of treas
| ury, under the demand notes now held
by the United States, had authority TO
| collect interest, Senator Hitchcock, demo
crat, Nebraska, suggested that there was
no immediate necessity for the proposed
! legislation Senator McCumber contend
ed however, that the demand notes
should be refunded with interest rates
stabilize economic conditions overseas. A
similar argument was made by Senator
| King, democrat. Utah.
Several amendments to the bin were
offered today. among them one by Sena-
tor Norris, republican, Nebraska, propog-
| ing to authorize the secretary Ct the
| treasury alone to accept bonds for the
| obligations now held by the United States
| ''in accordance with the law in force at
the time such obligations were incurred %