The county record. [volume] (Kingstree, S.C.) 1885-1975, 1922-01-26
ROW STARTS over
ALLIED WAR DEBTS
REPUBLICANS OPPOSE FIXING
TIME FOR PAY
MENTS.

ONeT Vic AillCu uSUs iSAeaAAS
broke out today in the Senate, with
Senator McCumber, Republican. North
Dakota, in charge of the measure,
pleading that the United States mot
play the role of shylock in dealing
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 the
measure saw only the completion Of
the opening statement by Senator
McCumber, chairman of the finance
committee, who was subjected to a
rapid cross fire from the minority
side. Tomorrow Senator Simmons,
of North Carolina, ranking Democrat
on the finance committee, will open
the minority, attack and general de-
bate will follow. Republican leaders
hope to press the bill to a vote be-
fore the end of the week.
Discussion today covered wide
range, including use of proceeds from
the refunded bonds to pay the SOL
der bonus, the ability Of the debtor
nations to begin paying their interest
and the plans of the administration
with respect to the sale of some of
the refunded obligations in the United
States. Pleading for broad author
ity for the commission in conducting
the refunding negotiations, Senator
McCumber said he could conceive of
situation where it might be desira-
BILE to agree with debtor nation to
fix the interest rate on the bonds
high enough to cover during the life
OF the bonds the accumulated interest.
Such a plan was opposed by SEN
ators Simmons and Lenroot, Repub-
lican, 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 the more readily saleable in
the United States. He added that a
serious objection was that if the re-
funded bonds were sold at par the
United States would lose all the de-
ferred interest while the purchasers
of the bonds would receive it. y
Senator McCumber gave it as his
opinion 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 the one year and then
authorize the sale of sufficient
amount of the bonds to take care of
succeeding yearly bonus expenses if
the interest from the foreign debt
should not prove sufficient. His es-
innate was that for the first year the
bonus would cost $3O0,000,000.
Directing to a writing on the bill
a provision fixing any definite time
for beginning interest," payments,
Senator McCumber seid that if the
time limit were made three years,
for instance, all of the debtor nations.
irrespective of their ability to pay,
would press for deferment of interest
for the maximum period. Seme ma
tions, he said would not be able to
pay for several years, adding that
the commission should have authority
to determine the facts as to the finan-
cial conditions of the various coun-
tries and then determine the time
limit.
Pointing out that the Secretary of
the Treasury under the demand notes
now held by the United States had
authority to collect interest, Senator
Hitchcock, Democrat, suggested that
there was no immediate necessity for
the proposed legislation. Senator Nc
Cumber contended, however, that the
demand notes should be refunded
with interest rates and other ques-
tions settled so as to help stabilize
economic condii0s overseas. A
similar argument was made by Sen
ator King, Democrat, Utah.
Several amendments to the bill
were offered today, among them one
by Senator Norris, Nebraska, pro-
posing to authorize the Secretary of
the Treasury alone to accept bonds
for the obligations now held by the
United States Gin accordance with the
law in force at the time such obliga-
ticns were incurred"