Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-02-01
ALLIED REFUND
BILL IS PASSED
UNDER CHARGES
Motive to Let Private
Creditors Get Theirs
First Is Accusation.
Measure Provides for
Securities Maturing
Not Less Than Is Yrs.

! Washington, Jan. 31-The bill au-
thorizing the refunding of the eleven
| billion dollars foreign debt into Sc
curities maturing in not less than %
years was passed Tuesday night by the
senate The vote was 80 to 25. Final
enactment of the measure must await
adjustment of differences between the
! house and senate. which is expected
within week or 10 days.
Three republicans. Borah. LaFollette
and Norris, joined with the solid dem
ocratic minority in opposing the bill.
Commission to Reconvert
Under the bill, commission of five.
headed by the secretary of the treas
ury, would have authority. subject to
the approval Of the president, to re-
fund or convert, and to extend time of
the payment of the principal or the in
terest, or both, of the foreign debt.
The date of the maturity OF the OBJ
legations accepted by the commission
could not extend beyond June 15,
1917, and the interest rate could not
be less than Az per cent. Bonds of
one foreign government could not be
accepted for those of another. nor
could any part of the foreign indebt-
edness be cancelled.
Only Cabinet and Congress on 1t
The life of the commission would be
three years from the date of the ap-
provnl of the act and the members
other than the secretary of the treas
ury would be appointed by the presi-
dent, subject to confirmation by the
senate During its life, the commits
sion would be required to make an
nual reports to congress at the begin
ming of each regular session in Decem-
ber
Only members of the cabinet and of
congress will be appointed on the debt
commission. according to Senator Wat
son, republican, of Indiana, who told
the senate that. although he was not
authorized by the president to make
such an announcement, he. neverthe
less. knew this was the presidents in
tention.
Blanket Power Cut Out
Aside from the amendment that the
interest rate on the refunded debt be
not less than 4A per cent, the only
important change made in the bill by
the senate was the elimination. 80 to
:35. on motion of Senator Walsh. Mon
tana. of provision which would have
given the commission authority to set
tie and refund any claims which the
states hereafter might have had
against 'any foreign government
The author of the amendment assert
ed, and senator's agreed, that under the
language of this provision. the com
mission could proceed to settle and ac-
cept securities for debts the United
States may have against the German
government, including the claim aris-
ha a:vfa ne hn
American troops on the Rhine.
Previously an amendment by Sen
ator Simmons. democrat, North Caro-
lima. which would have provided that
interest payments could not be post
poned for more than three years with
out the consent of congress was re-
jected, Al to 27.
Senator Simmons offered his SOL
dier's bonus amendment, but later
withdrew it at the request of Sen
ator Norris. republican. Nebraska. who
asked that consideration be deferred
until after the senate had acted on his
sub bill proposing to authorize the sec
retary of the treasury to refund the
foreign debt under conditions and
terms laid down by the existing Lib
erty loans act.
Ban On More Loans Rejected
The senate rejected without a roll
call. an amendment by Senator Shields,
democrat. Tennessee, prohibiting fur
ther loans to foreign governments un-
der authority of the Liberty loan acts
without the expressed authorization of
congress.
III the debate on the amendment.
reference was made to the application
of Liberia for further advances on the
credit of .$5,OO0.OOO established for
that country during the world war.
Those opposing the amendments said
that, while the United States probably
was morally bound to make further ad-
vances to the African republic. an act
of congress would be necessary, be-
cause the authority to make loans un-
der existing laws had expired with
the declaration of peace.
Charge "Nigger in WoodpiIe'
During the more than week of
debate it was charged from both sides
of the chamber that it was the pur-
pose to defer interest payments for a
number of years, in the interest of
private holders in this country of |
S., ,OOO, 100000 worth of bonds of some |
Of the debtor nations. 1t also was |
charged that il the interest payments
could be deferred for number of |
years the way might be cleared for the |
of the whole debt.
These contentious were denied by |
those in charge of the measure. who |
stated that it was necessary to give {
the commission latitude in. the matter |
Of time of interest payments, because |
fconfinue.l nm Pare Threcl