New-York tribune., 1922-01-27
Debt Fund Plan
Hotly Attacked
AS Vote Nears
Opposition to Measure for
Handling Allied ObI'ga.
lions Comes From Boil,
Parties in the Senate
Johnson Sees Peril i'm Ii
Would Involve America in
All European Trouble,
Californian Declares

- 4 ~ =
WASHINGTON, Jan. 26.---The Allied
debt refunding bill was subjected
again to-day TO n running attack
from both The Republican and Demo
cratic sides OF tho Senate and was de-
Tended at some length by majority
party leaders. When the Senate ad-
journcd the end OF the debate was not
measure thought Anal vote might be
reached to-marrow.
In the first vote on q phase of the
bill late to-day an amendment was ep-
proved providing that the refunding
bonds should not bear interest at less
than AZ per cent. The amendment
was suggested by Senator Simmons,
Democrat, North Carolina, as sub
sttutc for the original Finance Com
mittoe amendment which would have
provided that the rate of interest
should not be less than that provided
for by existing law.
The attack on the measure today
was opened by Senator Johnson, Re.
publican, Of California, who warned
the Senate that if the reported plan Of
the Administration to sell the foreign
bonds to the American people was car
1icd out "you won't need League CT
Nations to drag you into every m
broglio across the water" WIN 'ne
bonds distributed among the people,
he asserted. there would be constant
pressure on the government TO inter-
fcrc in the affairs of the debtor ma
tions.
Declares Congress Responsible
Supporting his amendment requiring
Congrc sionaI approval Of agreements
entered into with the debtor naslons
by the proposed debt refundlng COM
mission, the California Senator salo
Congress was responsible to the people
and should not surrender its power to
SUPERVISE the debt refundlug. In this
connection he attacked the secret ses-
sions of The arms conference, declaring
that "a real disarmament program
would have resu ted had the s0sslons
been he'd in the open for one week
after Secretary Hughes had made
himself hero by his masterful prcsen-
taton to the word Of the things Amer
ica would do"
Opposing the johnson amendment,
Senator Watson, Republican,. Of lndi-
ana, declared that vote Of the Senate
to accept it would be nothing less thar
"a vute of lack of confidence in the
President of the United States" Sem
ator Borah, Repub lean, Of Idaho, took
issue with the Indiana Senator, declar
ing that Congress had caused the crea-
ton of debt and that it was responsi-
Bile to the people for what happened
to it.
Senator Watson told the Senate that
the Secretary of the Treasury had au-
foreign debt represented by direct ad-
vances from the Treasury to TT Allied
nations, but he did not have the an-
thirty to refund the deferred interest
and the other obligations growing out
Of the sale of American war material
and relief supplies to France, Poland
and other nations.
Glass Takes Part in Debate
Senator Glass, of Virginia, g former
Secretary of the Treasury, and Senator
Simmons contended that the Secretary
had full authority to refund the de-
ferred interest Chairman McCumber
Of the Finance Committee in charge of
the bill, disputed this contention. Both
he and Senator Watson also argued
that the United States should not in
sist that the refunded bonds bear the
same conditions as the American Lib
erty bonds, as provided by present law.
They said conditions in the world had
changed. and that the present situation
shov be taken into account in the re-
iun'ing negotiations.
Closing the days discussion, Senator
Hehin, Democrat, of Alabama, wanted
t. knNw what Wall Street interests
were behind the proposition that the
government put off to some far distant
time the collection of the interest"
He said it had been suggested that the
holders OF British and other foreign
bonds sold in this country during the
war wanted the government to defer
privately held bonds" could be taken
care of by the foreign nations.
In making his a.tack on the execu-
tive sessions OF the arms conference
Senator johnson declared that all the
big things of recent years have been
accomp ished "in the OPEN" He re-
viewed how, when Mr.. Balfour wanted
to lay the British position before the
arms conference, he called for a plen-
ary session, and how when the French
position was to be stated NJ. BRAND
asked to be allowed to speak in public.
New Err Here, He Says
at is because we are approaching a
new era" the Senator went on. Estates
men everywhere are learning that the
people have found out that they have
rights and that those rights must be
respected"
Referring to the suggestion that
foreign refunded bonds be sod in the
United States, Mr.. Johnson demanded
to know whether those who favored
such proposal were willing to link up
the United States with Eur pc after it
had been thoroughly demonstrated that
the American people did not want the
League of Nations. Bring those bonds
over hc:c?" the Senator queried. "Look
Mt France! Russian bonds in the hands
Of every peasant. And what are they
worth? And how have they interested
France in the Russian wreck?
"Why, those who favor this bill saw
we are not dealing with the purse
strings of the nation. | say we are
working at the very vitals of the :oun-
tly's finances. l know men who are
almost financially ruined because thew
tried to do all that all was demanded
OF them in the purchase Of Liberty
bonds.
1--WE took that money, wrunr fron,
our peop e in the streets of war times
turned it TO our associates in the
struggle and now it is proposed to give