Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-01-24
FIGHT OVER ALLIED
DEBT REFUND|NG
BILL ON IN SENATE
Senator McCumber Sub
jectcd to Heated Cross
fire Folliwng Speech.
MINORITY ATTACK
ON BILL BEGINS TODAY
Special Tax Suggested to Pay
Soldiers Bonus First
Year.
LEV Assncintcd rr.ss1

WASHINGTON. Jan. @3-The ngh,
over the allied debt refunhlnr biiI
proke today in the Senate with Sem
ator McCumhcr. Republican. North
hak"'a, IN charge OF the mcn sure.
pleading tina; tho United states mot
/, play the role of Shylock in dealing
with its allies" and the Democrats
opposing the proposed grant of am
thority TO the debt commission to
IN tho time when interest payments
shall begin
The first nays consideration Of IN.
measure saw only the completion OF
the opening statement of Scua,or
McEnmhcr. rs chairman of the Fl.
nance Committee. who was subject
to rapid Crossf!re from the minority
side. tomorrow Senator Simmons. Of
- North carolina. ranking Democrat. on
the Finance committee. Will open Tho
minority attack and general dcbat.
Will follow. Republican leaders hone
10 press The bill to vote nv the end
OF the week
Discussions Are wide.
Discussions today coy.r.d , Wit.
range. including use of proceeds from
H.
der bonus. tho ability oc tho .Icb,or
nH'onS to begin paving their inter-
est ana IN" plans OF the administra-
'oh with respect Ia the sale OF some
of tho refunded obligations in tho
United States. Pleading for broad
authority for the commission IN, con.
quoting Tho rcfundinE negotiations
Senator NCCumhcr said he could con-
ce!rc Of a situation where /, might
be desirable TO agree with a debtor
nation to fix the interest rate on the
bonds high enough TO cover. during
tho life OF the bonds. the accumulated
interest.
PInn Is Opposed.
Such plan was opposed by Sem
ntors Simmons and I.cnroot, Rfpub-
l!can. Wisconsin. The former said
secretary Mellon had Informed tho
Finance Committee that President
Harding had approved this proposal
as means OF making the forcan
bonds more readily salahlc in tho
United States. lie added that a Sc
rious objection was that If the re-
funded bonds were sold a; par the
United States would lose all the de-
, ferred interest, while the purchasers
-of the bonds would receive IT,
Senator McCumbsr gave IL as his
opinion that mona OF The proceeds
from the refunded foreign debt would
he available for the soldiers bonus
until within one year after next July
i. the date on which Republican
headers have said the bonus would be
made effective.
II" thought that Congress should
provide some special form OF taxa
ton To cover bonus payments FOR the
one wear, and then authorize the sale
Of It sufficient amount o! the bonds
10 take car. az succeeding yearly
bonus expenses II the interest from
tn" foreign debt should not provide
sufficient. Ills estimate was that frr
the nrSt year the bonus would Sust
$500, O00.00o
M Immediate Necessity.
ohjecting Ia writing into the Lill
"a provision hNing .,uy dcnm,c time
Tor beginning Interest. apartments.
Senator McCumEFr sa!d. .thnt II the
time lim.; wcr" made three years.
for instance. all of the debtor ma
tions. irrespective ~ their ability To
pay. would press for d-f.rm"nt o.
interest for the maximum period
som" nations. he said would no, hr
able 10 pay for several Years. adding
That tho commits sion should have au-
thori,y 10 determine the facts ~ TO
the financial condition az the various
countries and then determine the
time limit Pointing out that the
secretary Of IN" Treasury. under ,h.
demand notes now held by the United
States had authority to collect In.
ter"st. Senator Hitchcock Democrat
Nebraska. suggested that Their. was
10 immediate necessity FOR the pro-
posed legislation. Senator McCurn
Der contenG"d. however, that Ia, de-
mand notes should hc refunded win
interest rates and other questions
settled 50 a. 10 help stabilize oco-
nomic conditions overseas. \ similar
argument MAS made by Senator King
Democrat. titan
Several amendments to IN. hin
were offered today. among them am.
10y Senator Norris Republican ~.
hraska. Processing Ia authorize mo
Secretary % the Treasury alone a.
accent n"nds tor the obligations nov
held 10y nc United states in accord
ance Win Inc law in force q, ~.
time such ohlirations We're incurred d.
N z=SESSS