New-York tribune., 1922-12-29
President Urges Senate
TO Let Commission Acl
in Modifying Terms of
Allied Payment to U. S.
No Move to Scale
Total, Says Lodge
Would Affect Only Rate
of Interest and Time
Extension, He Explains

Prom The Trbsnss WashiEgioa BaTsau
WASHINGTON. Dee 2s.-The ques.
tion whether President Harding de.
sires Congress to enact legislation 10
provide the Debt Funding Commission
with power to cancel all or part Of the
Allied indebtedness was warmly de-
bated IN the Senate to-day.
IN his letter 20 Senator Lodge oppos-
ing the BorAh amendment the Presi-
dent informed the Senate that n Con-
gress really meant 20 facilitate the
task OF Congress in dealing with the
European situation the fret practical
step would be 20 free the hands Of the
Debt Funding Commission 80 that
helpful negotiations may be under
taken"
This was at first taken by Senators
to imply the President wanted the
Debt Funding Commission 10 have
authority to cancel part Of the Allied
indebtedness. But Senator Lodge, In
terrogated by Senator Borah, denied
the President had any notion Of can
collation. and said he desired the COM
mission to be allowed latitude in re-
spect 10 interest rates and time Of
payment.
Inasmueh as the Debt Funding Com
mission Is soon to meet here there IL
little likelihood Of getting the existing
law changed before It's deliberations
begin. Il has not yet been made clear
whether the Administration will seek
sueh changes in the law as those mem
toned By Senator Lodge.
Borah Fears Cancellation
Senator Borah charged in the course
Of the debate that while talk Of no
cancellation is INDUCED. . situation IL
being arranged that will mean the debt
will not be paid.
Mr.. Borah and Senator Lodge eE-
changed views on cancellation while
senator Mccormick held the hoor.
senator Borah pressed Senator heCor.
mick whether he knew the nature OF
tbe negotiations now being carried on.
Does the Senator know what the
,prnort Of these negotiations Is, what
thev include ," Senator Borah asked.
"The Senator does not senator Me.
Corriek said. "but il the Senator had
been here a few days longer ne eould
have learned. no doubt, By going 10 the
state Department 20 ask.
alf the Senator would take occasion
N visit the State Department any time
soon" Senator Borah replied, Il would
he greatly pleased 20 have him ADVISE
bis colleagues what the negotiations
sIn regard 10 the question asked by
the senator from Idaho about what
these negotiations include. Senator
Todge interposed, al am not in posi-
zion 10 state precisely what they IN
elude; also ! think IL Is very OBVIOUS
20 every one what their limitations
might be. / can say what they do not
include They do not include the can
collation. OF a debt.
Harding Opposed, Says Lodge
"t asked that question Of the Presi-
d.rt and he said This Administra-
ton has been steadily against the can
eellation OF the debt. II Is now
~ also asked IN that connection
shsut his reference 10 a greater latl-
tude 70 be given to the commission ehe
he said that referred 70 the question
of time or the amortization OF the
debt. or TO the question Of racial IN
terest." ,,ct.t
aPreeisely," said Senator MeCoormies'
aThe negotiations By the state Depart
ment. like those between the European
governments. have sought 10 ma
basis OF agreement upon when me
tentative Brussels conference could 2e
followed. because. as published IN the
press. none Of the governments oe'
ileved Il would be possible 20 hold Az
economic conference % Brussels
that conference we're doomed 70 iaisuIe
In advance by reason Of the un~iiiihg'
ness OF governments 10 estaoiish ., =
basis upon which they could negotiate.
"The President" said Senator botah'
asays In his letter that while the State
Depsrtment has eontended that the
question OF the debts should be eonsla-
cred separate and apart from the qnes-
tion Of reparations, the foreign govern
ments contend otherwise. and that the
two propositions apparently are inter
fc.,Nrusd oe asst aAafl