Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-24
FIGHT OPENED
BY M'CUMBER
ON DEBT Bill
North Dakota Senator Says
U. S. Shouldn't Play Role
of Shylock

Washington, Jan. 23.-The fight
over the Allied debt refundtng bill
broke today in the senate with Sena-
tor McCumber, Republican, North Da-
kota, in charge of the measure, plead
Ing that the United States should mot
with its allies" and the Democrats
opposing the proposed grant Of au-
thority to the debt commission to fix
the time when interest payments shall!
begin.
The first days consideration of tie
easur saw only the completion of
the opening statement by Senator Nc
Cumbcr. as chairman Of h finance
committee, who was subjected to a
rapid cross-fire from the minority
side. Tomorrow, Senator Simens OF
North Carolina. ranking Democrat on
the finance committee, will open the
minority attack n general debate
will follow. Republican leaders hope
to press the bill to q vote by the end OF
the week.
Wide Range Covered.
Discussion today covered a wide
range, including the use Of the pro-
ceeds from the refunded bonds to pay
the soldier bonus, the ability of the
debtor nations to begin paying their
interest and the plans of the admins
tration with respect to the sale OF
some of the refunded obligations in
the United States.
Pleading for broad authority for
the commission in conducting the re-
funding negotiations, Senator Nc
Cumber said he could conceive of a
situation where it might be desirable
TO agree with a debtor nation to fix
the interest rate on bonds high enough
to v during the life Of the bonds
the accumulated interest,
Spccial a for Bonus
Such a plan was opposed by Sena-
tors Simmons and Le%enroot. Repub-
llcan. Wisconsin. The former said
Secretary Mellon had informed the
finance committee that President
Harding had approved this proposal
as a means of making the foreign
bonds more readily saleable in the
United States. He added that a seri-
Gus objection vas that if the refunded
bonds were sold at par the United
states would lose all the deferred in
1erest while the purchasers of the
bonds would receive it.
Senator McCumbe. gave rs his
cninion that none of the proceeds from
The refunded foreign debt would be
available for the soldiers bonus until
within one year after next July 1, the
date on which Republican leaders
have said the bonus would be made
effective. He thought that congress
should provide some form of special
taxation to cover bonus payments for
one year and then authorize the sale
of a sufficient amount of bonds to take
care of succeeding yearly n ex-
penses If the interest from the foreign
debt should not prove sufficient. His
estimate was that for the first year
the bonus would ost $500, zoe, eco.
Provision
Objecting to writing into the bill a
provision fixing any definite time for
beginning interest payments, Senator
McCumber said that if the time limit
were made three years. for instance.
all Of the debtor nations, irrespective
of their ability to pay, YOU press
for deferment of interest for the max
imum period. Some nations. he said
would not be able to pay for severa
years, adding that the commission
should have authority to determine tht
fects as to the financial conditions o.
the various countries n then deter
mine the time limit.
Pointing out that the secretary o.
the treasury. under the demand note!
now held by the United States. had
authority to collect interest, Senator
Hitchcock Democrat. Nebraska. eng.
Eested that there was no immediate
necessity for the proposed legislation