Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-12-27
KAHN SETTLEMENT
PLAN IS UNPOPULAR
Congressman See No Possibil
ity of Disseminating in
European Debts.
COMMISSION LIMITED
Body, Under Existing Author
ity, Unable to Adopt Finan-
cicr's Proposals.


WASHINGTON. Dec @s.-rhe solu-
tion of Americas foreign debt prob
en- proposed by Otto II. Kahn. tho
New YORK banker. failed generally
Z" strike a responsive chord today in
official circles in Washington.
Members of the American Debt
rUndiug Commission took note OF
Nh kahn's proposal that the United
states diH"rontiate between the
s15oo,ooo.eoo loaned TO European
countries before the armistice and
the s. 500 100000 loaned after hostili-
tics ceased aud arranging different
methods Of repayment but pointed
out that the net OF Congress creating
tho commission would permit no such
differentiation even if considered
Congressman Antngonistic.
Members OF CONGRESS generally eS-
pressed decided opposition TO tho New
York bankers suggestion that at
least a portion OF the debt be can
celcd several leaders in both the SEN
ste ana House declaring that the
American people were in no mood to
approve any such action.
The views OF Mr.. Kahn as present.
ch In a letter TO Senator Smoot. OF
Utah, a member OF tho debit funding
commission, drew particular fire from
Representative Frcar, Of Wisconsin,
Republican member OF the House
Ways and Means Committee. who adj
dressed a letter 10 Senator Smoot as
sorting that "thc commission should
npprisc foreign governments at an
early day OF the anomalous position
occupied hy Nj. Kahn. and that he
does not speak FOR the commission.
ION the Congress or for the Amer
loan people"
Letter Not Yet Received.
Senator Smoot had not received Mr..
kshns lc.icr today and said he him
self would not comment upon 1t until
inc had received II and studied the
propositions st forth in it,
pthcr members ot the commission
However, were quick to declare that
tho commission could do nothing to-
ward differentiation In the debt as
suggested by the banker. The COM
mission. they pointed ont. was per
mjttod 20 10 only three things with
tho dehts--a,low rostponcment Of
pa@mcut of principal for not longer
han twenty-five years TO fix the rate
of interest at not less than IA per
cent and TO authorize funding Of the
interest along with the principal for
not longer than twenty-five years.
Power Much Limited.
The most that the debt commission
could do in line with the Kahn suE-
Icstious. i, was said by the COM
mission member, would bc to present
Recommendations 10 Congress /: study
found that IL was impossible Ia pro-
coed within the authorization OF
Congress
Representative Trcar In his letter
pointed To MIR. kahn's German birth.
his subsequent British naturaliaa-
iion. and 20 his membership in Kuhn.
Loeb d Company banking flrm, and
said the frequency OF his advice for
cancellation OF foreign debts in whole
or in part and the publicity
attending his efforts TO that end.
suggest a propaganda tending TO
cnihaTrass the commission and 20
mislcad foreign governments rs to-
the sentiment in this country on tho
subject
selfish Interest Asserted.
Possibly testimony before our
committee Che Hous" WAYS ana
Means Committee, tina, over $4,000
100000 40 forclgn securities are h"ld
larg"'y hv international bankers in
c-tnc kuhn Loeb & Company"
N~ Fr,lr tiCl"d. may be a fac
t#r 9ustar. ap@. ~ f.r ehnc~lla-
SION rt rn" = ...--.. : debt, 50
r.: ,hase 'ars,ru debts 80
,.7r ErrE International bankers ~
't-- Gs-1 'rers can - expected an
'.e governments Prior lien q ap-
H-n&'-na,al" 81 u3h 100000 has been
rroF.e"1 ~ AZ. KaEu'a foreign,
private holdings arr no; pro
.y h m for cancellation. uo-
.s sa-Ea-' hat foreign govern
'"ar 9li r@HnG.ish tHeir treaty
r1t HI.Si'..~s IS an !uduc"mcui
"a B.. 2 80 p a.