The Washington herald., 1922-07-23
AMERICA 10 ASK
ALLIES OF PLANS
TO REFUND DEBTS
Nations Jockey for Ad-
vantageous Positions in
Negotiations With us.
INTEREST IS DUE
Rep. Burton Sails Next Month
To Probe Debt Situation
Of Europe.

ChCio sam - ScttinB Teduy 10
send out please remit" notices to
the allied powers who owe him ap-
proximately $4,000. 900. .ooo He has
been a patient creditor and he will
continue to be patient. but he would
like to have some promissory notes.
definitely dated. in place of the
vague 1 o US he now holds.
Expressed in diplomatic language.
the administration. through the
State Department. is preparing to
make representations" to the
allied governments and ask rather
pointedly when they are going to
begin paying up.
Congress Disappointed.
Efforts to refund the allied in
debtedness and get Americas cred
itors started paying on the INSTALL
ment plan, at least So far as inter-
est is concerned. have been disap-
pointing. IL is frankly admitted In
administration circles. The disap-
pointment is especially keen in
Congress. where statesmen. not so
wise either in world economies or
diplomacy. were counting on having
large installment of the British
debt paid up and ready to meet the
cost of the soldiers bonus this
month.
The prospect is extremely uncer-
tain. II is no longer a secret that
the various nations are jockeying
with each other for advantageous
positions in the refunding negotia-
tions. Each is holding back and
looking to the other to make a set
tlement with the American govern
rnent first, hoping that thereby
they may derive certain advantages
from precedent. All are keeping a
close watch on the most favored
nation" clause in their treaties with
the United States.
Confer with Representatives.
That is the situation that the for
eign debt refunding commission,
made up of Secretary of State
Hughes. Secretary of the Treasury
Mellon. Secretary of Commerce
Hoover Senator Smoot CUtah) and
Representative Burton (Ohio) finds
itself In several months after its
creation.
There have been but few meet
ings of the commission and SO far
there have been no concrete re-
suits. There have been Informal
conferences with representatives of
Great Britain and France but they
have been unavailing SO far as con-
version of the obligations of those
governments into securities, run
ming for fixed periods of time and
bearing specified rates of interest
are concerned.
1t Is understood here that Great
Britain, which has announced her in
tention to pay her obligations to the
United States. looks to France to
settle her obligations to England,
and France in turn looks to Ger
many to MAKE good on her repara-
tions before she pays Great Britain.
Furthermore, England expects to
settle on as good terms as any of
the creditors of the United States.
Thought Britain May Pay First.
When the foreign debt funding COM
mission was created 1t was believed
that the British debt would be funded
under the terms laid down by Con-
gress when 1t created the commission.
In other words, that the obligations
would mature within twenty-five
years and would bear interest at the
rate of Az per cent There were
many members Of Congress who be-
lieved that Great Britain was the
only nation that could comply with
those terms, and that after the Brit
ish debt had been funded; recon-
mendations would be made to Con-
gress that the legislation be so
changed as to permit more liberal
treatment with reference to the other
creditors.
Apparently England. which has a
worldwide reputation of more than
200 years for having paid all national
obligations, and of having restored
her currency to a gold basis after
the Napoleonic wars. proposes to
settle on terms as advantageous as
those given other nations.
Soon after the foreign debt COM
mission had been created, when II
was proposed that the representatives
OF the nations indebted to the United
States send commissions here to be-
gin the negotiations. 1t was reported
that that would be impossible Just
then. because the financial experts of
the European nations were at the
Genoa economic conference. A little
later 1t was reported they were at
The Hague.
1t Is now seriously doubted whether
anything will be done for months to
come. Representative Burton in
tends to sail for Europe August IL
for the purpose of attending the inter-
parliamentary union meeting In
Vienna. While abroad he will In
vestigate the debt situation on the
continent. He will not be an Official
representative of the commission. but
II Is believed the information he will
bring back viii be OF service to the
commission in its work