The Washington herald., 1922-12-27
FrearDenOuncesKa Kahn
For New Proposal to
Cancel EurOpe'sDebt
Motives Sharply Questioned by Wisconsin
Representative, Who Pertinently Asks
Why Banker Does Not Advocate Remis-
sion of Private Loans Abroad.
By WINDER r. HARRIS.
Universal Service.

Univers.s Service
Representative James A. Frear Rep Of Wisconsin last
night called the foreign debt funding commission to advise
foreign powers that Otto H. Kahn, urging cancellation OF
the owing the United States speaks neither for the
commission for Congress or the American people
Representative Frears request made in letter to Senator
Smoot member of the debt commission prompted by
Mr. Kahns latest proposal for debt cancellation outlined
communication the Utah Senator made public Monday
Sharply assang New York banker Mr. Frear declared
m may open question what country and what class OF
Of cancellation the further asserted suggests
ganda tending embarras the commission and to msead
foreign to sentiment this country on the
subject"
suggestion Of cancellation Of part OF the four
billion dollars in foreign securities held by private
largely international bankers which would be tremendously
enhanced in value through remission Of Government
obligations
Cancellation Talk Called Silly.
Senator Smoo had received either of the eommunca-
tons last night he sad and therefore declined to comment
them 1t was again explained by members OF the aec,
however, that talk of cancellation silly
The text of the Frear letter follows:
press this morning gives wide publicity to proposal
of Mr. Otto Kahn of Kuhn Loeb Co., international bank
New York that your commission proceed to cancel the
debt owing by European countries to the United States
excepting money loaned after armistice which he gener
ously admits is proper subject for refundng
Mr. Kahn has equal right to volunteer advice with
every other citizen whether by birth choice but the
frequency Of advice calculation of foreign debts
in whole in part prior to and since the act OF Congress
ing his efforts that end suggest propaganda tending
the commission and to msead foreign govern
sentiment in this country the subject In
efforts to hold out unwarranted hopes to
European countries of cancellation to be condemned be-
cause Mr. Kahn, speaking without shadow Of authority,
may thus seriously hamper the work OF your commission
AssaiLs Bankers "Efusions."
When the reunding resolution before committee
ways Means offered five amendments all Of which
whole with notifications then adopted accepted
by the House and Senate and law governing the
jurisdiction of your commission. These amendments in
prohibition against cancellation of debts and against
substitution of obligations of other countries for those to
be given direct by the government indebted to
law, subject to its modification repeal by Con-
gress of governs the commission instead OF
frequent effusions of Mr. Kahn which fact of
appreciated by those chosen to administer the law.
Possible testimony before committee that
in foreign securities held largely by inter-
factor in constant appeals for cancellation of the Gov
ernments debt No payment of these foreign debts to
York international bankers their customers be
expected Governments prior lien of approximately
$ has been provided for. Mr. Kahns foreign
debt private holdings not proposed for him for
collation., does he suggest that foreign governments
should relinqush their treaty land acquisitions in
| ducement for cancellation of their debts
| Commission Is Capable
I believe the commission chosen by the President is
abundany able handle the foreign debt settlements but
which mslead foreign and embarass
our own Of his antecedents that it be open
question what country and what class of creditors Mr.
| Kahn today represents ., '.. ....
submit that in matter Of such vast importance, the
commission should appriss foreign governments ct early
dsy Of the anomalous position occupied BY Ar Kahn and
that he does not speak for the eeon for the Congress-