Evening journal., 1922-02-01
DEBT FUNDING
BILL PASSES
Final Enactment Must Await
Adjustment of Differences
With House
BONUS AMENDMENT
is VOTED DOWN

WASHINGTON. Feb. 1.-The bill
authorizing the refunding Of the
eleven billion dollars foreign debt
into securities maturing in not
more than twenty-five years was
passed last night by the Senate.
lne vote was 80 to 20 FINAL en-
actmcnt OF the measure must await
adjustment of differences between
the House and Senate, which is ex-
pected within week or ten days.
Three Republicans, Borah, La Fol-
iette and Norris, Joined with the
solid Democratic minority In oppos-
ing the bill.
Under the terms OF the bill a COM
mission Of five members. headed by
the secretary Of the treasury, would
have authority. subject to the ap-
proval of the President, to refund
or convert. and to extend the time OF
the payment OF the principal or the
interest, or both, OF the foreign debt
The date of the maturity OF the
obligations accepted by the commits
sion could not extend beyond June
is. 1947. and the interest rate could
not be less than AZ per cent. Bonds
OF one foreign government could not
be accepted for those OF another. nor
could any part of the foreign in
debtedness be cancelled
The life Of the commission would
be three years from the date OF the
approval of the, act and the mem
bers. other than the secretary OF the
treasury, would be appointed by the
President. subject to confirmation by
the Senate. During its life the com
mission would be required to make
annual reports to Congress at the
beginning of each regular session in
December.
only members OF the cabinet and
of Congress will be appointed on the
debt commission, according to SEN
ator Watson Indiana, who told the
Senate during debate that, al
though he was not authorized By the
President to make such an an
nouncement, he, nevertheless, knew
this was the Presidents intention.
Aside from the section proposing
that interest on the refunded debt
be not less than Az per cent, which
was added as an amendment from
the finance committee the only inn
portant change made in the bill by
the Senate was the elimination OF a
provision which would have given
the commission authority 10 settle
and refund any claims which the
United States hereafter might have
had against ANY foreign govern
ment"
Efforts to add a soldiers bonus
provision to the measure; to limit
the authority Of the commission ir
deferring interest payments and I,
require congressional approval o.
the bond conversion agreement
failed The Senate did adopt. how
ever. an amendment by Senate
Walsh. Democrat. Massachusetts,, re
quiring the commission after the
conclusion Of each refunding negoti
alton TO report the results to the
Senate. Senator Walsh explained
that the object was to give "pitiless
publicity" to the work OF the com
mission.
During the more than a week OF
debate It was charged from both
sides Of the chamber that Il was the
purpose to defer interest payments
for a number OF years in the interest
OF private holders in this country OF
$4,000 .o00.000 worth OF bonds OF
some OF the debtor nations II also
was charged that II the interest pay.
ments could be deferred for num-
Der Of years the way might be clear.
ed for the cancelling Of the whole
debt. principal and interest.
These contentious were denied b,
those in charge OF the measure. VIII,
stated that il was necessary to Civ
the commission lutitude in the mat
ter OF the time OF interest payments
because all of the debtor nation
could not begin payments at tn
same time The Senate was toll
that the treasury department expect
ed Great Britain to begin its interes
payments in a short time. but tina
in the case OF some OF the newl
created nations interest payment
might have to be deferred for a
long as ten years.