New-York tribune., 1922-01-31
Leaders Control Shown by
Rejection of Amend
ments Except One Fixing
Minimum Interest ~ Go
Private Debts Discussed
McCumbcr Denies Assertion
of Reed Measure FavOrs
International Bankers

fore + o'clock this evening recess WAS
taken until II o'clock TO morrow with
the bill still pending. Senator McCum-
bcr. chairman Of finance was unable to
arrange an agreement on a time foi
voting. When the Senate recessed he
said he hoped to obtain a final vote to-
morrow Results Of the days copsid-
Grafton Of the bill made it plain the
leaders had the situation in control
All proposed amendments which were
voted on were turned down except the
Finance Committee amendment fixing
the minimum interest rate on the for
eign bonds at AZ per cent.
The Senate refused to adopt amend
ments which would require Congress
sional sanction of foreign debt agree
nual or annual payments OF interest
and which would limit the time beyond
which interest payments could not be
deferred.
Senator Reed, OF Missouri, made an
other attack on the bill. He declared
that in the next election the American
people would express themselves "in no
uncertain terms" with respect to pay
mens of the foreign debt.
Reeds Charges Denied
"In Missouri" he added. "the people
are united regardless OF party against
reduction or cancellation. Only few
friendly to the clique of international
I bankers, desire such action lie
charged that powerful interests in this
country wanted the debt deferred or
cancelled to protect private obligations
owed by governments of Europe to
/ parties III this country. amounting to
/ $4,000, 600 900.
Senator McCumbcr denied this and
! declared the total Of such outstanding
obligations due private parties was
only $997.000O00 while all the debts
due the intcrna tional bankers. corpora
try. apart from European government
debts. totaed $1,000 100000
Senator Borah declared the awmak-
ing body had by lrs course already
acQuiesced in deferring interest
1T is unlikely any interest will be
paid in hve or ten years" he said "The
worst feature is that there are power
full influences working against ever
paying this debt. The most powert al
financial influences in the world. botl,
in this country ard abroad, arc dc
ternlined that the debt shall never be
paid"
Senator Walsh. of Massachusetts,
said the Secretary o. the Treasury
had told the Finance Committee so per
cent OF the debt could be collected
,,pC t<,
every six months that he owes money
is to collect the interest,"" said
Senator Borah. Everywhere through
out Europe officials and tie people dc
not discuss the payment Of this debt
any longer
Expects Russia to Pay
debt ultimately would be paid and Sen
ator Borah observed he would socDe,
have the obligations of Russia than
of some Of the other nations
On roll call the Johnson amend.
ment. requiring Congress ional approval
of any agreement relative to the debt
was defeated. So to a. Seven Rcpub.
licans, Borah, Brandegee, johnson
Norris, Moses, France and La Toilette
voted for it. One Democrat, Senate,
Williams. of Mississippi. voted with
the Republicans against the johnson
amendment
Debate then centered about the Sim
mems amendment requiring scmi-an
senator Williams declared against it
This is not a money lenders prop
osition.' said Senator Williams.
1t was beaten 80 to 49. Senator,
bcrah, johnson, Norris and La Fol
tette, Republicans. voted for it. ane
Aenator Williams. Of the Democrat,
SIDE. against 1t. Otherwise, it was ;
party lineup.
Senator Reed. of Missouri. proposed
tnat IN no case should payment Of in
terest be deferred longer than I'VE
years. This led to long discuss;on
senator Lodge declared that if thi.
went into the bill, every foreign gov
eminent would insist on getting a dc
lay Of two years.
Reed Amendment Beaten
Senator Reed held that if an exten
son were made TO one country. othe,
countries would insist on like priviler,
and hence Senator Lodges argument
was not we'll founded The Reec
amendment also was voted down. 80 I,
AZ. Senators Borah. Johnson. Ken
} Yon. La follette and Norris. Republi
cans voted for the amendment ant
senator Williams voted against it.
senator Simmons proposed that nav
ment OF interest should not be deferred
more than three years without the con
sent of Congress-
, IN arguing for the Simmons amend
; Nent Senator Reed declared the pur
pose OF this bill "is to wipe out par
on 'he law as 1t exists and to grant IN,
present Secretary of the Treasury nov
ers rot possessed by the former Secre
taries of the Treasury.
Senator Reed said that if tho cecro
tary of the Treasury was rivcn nnl;n,
tied power to extend the psvment -
interest the debt would be "iupcle,
IN the interest Of til, private bond
holders Of the United Sts.es.'
He charged that in tnis instance m
agricultural bloc had responded to tn,
crack of the party whip"
Senator Stanley lin sarcastic snoec|
charged the agricultural bloc VIII
failing to block He declared !
didn't block when "Wall Street ;s =,
the main line" VI
Bloc Is Defended
ihls led Senator Ashurst to name :
numoer OF the agricultural bloc whf
had voted correctly" in regard to ths
amendments proposed to this bill O.
the Republicans. he named Senator,
Kenyon and La Toilette. and said ~
II ne omitted any he hoped thew woul,
make it known
The President may denouncc tn.
agricultural bloc. but the remedies th,
agricultural bloc have sought will save
this country fromm the peril into wb;c}
1t IS drifting he said. "The time ha,
u 60