The Birmingham age-herald., 1922-01-24
OPENING GUN IN
 DEBT BILL FIGHT
 FIRED IN SENATE
McCumber Pleads That U. S, Not Play Part of Shylock.
 Simmons Replies for Democrats Today
--------- By Associated Pren.

Washington, January 23.-The fight over the allied debt refunding bill broke today in the Senate with Senator McCumber. republican, of 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 authority to the debt com mission to fix the time when inter- est payments shall begin.
 The first days consideration of the measure saw only the completion of the opening statement by Senator McCumber, as 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 debate will follow. Republican leaders hope to press the bill to a vote by the end ci the week.
 Wide Range Covered
 Discussion today covered . wide range, including use of proceeds from tho refunded bonds to pay the soldier bonus, the ability of the debtor na- tons to begin paying their interest and the plans of the administration with respect to the sale of some of the refunded obligations in the Unit ed States. Pleading for broad au- thority for the commission in con ducting the refunding negotiations. Senator McCumbsr said he could com ceivs of situation where it might be desirable 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 Sem ators Simmons and Lenroot, repuh- 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 saleabie in the United States. He added that a serious objection was that if the re- funded bonds were sold at par the Ut.it4d States ..ould l1se all the de- tered interest while tho purchasers of the bonds would receive 1t.
 Not Available Til 1923
 senator McCumber gave 1t as his opinion that none of the proceeds from the refunded foreign debt would be available for the soldiers bonus pntil within one year after next July l. the date on which republican lead CTS have said the bonus would be made effective. He thought that Congress should provide some specia. form of taxation to cover bonus pay ments for the one year and then au- thorize the sale of a sufficient amount of the bonds to take care of sue ceeding yearly bonus expenses If the interest from the foreign debt should not prove sufficient. His estimate was that for the first year the bonus would cost s30o.000,0o0.
 Objecting to writing into the bill a provision fixing any definite time for beginning interest payments, senator McCumber said 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 in- terest for the maximum period. Some nations, he said, would not be able 10 pay for several years, adding that the commission should have author ity to determine the facts as to the financial conditions of the various countries and then determine the time limit. Pointing out that the Secre- tary of the Treasury, under the de- mand notes now held by the United States. hatd authority to collect in- tcrest. Senator Hitchcock, democrat, Nebraska, suggested that there was no immediate necessity for theN pro- posed legislation. Senator McCumber contended, however, that the demand notes should be refunded with in- terest rates and other questions sec tied so as to help stabilize economic conditions overseas. A similar argu- ment was made by Senator King, democrat. Utah.
 Several amendments to the bill were offered today. among them one hy Senator Norris. republican, Ne braska, proposing to authorize the Secretary of the Treasury alone to accept bonds for the obligations now held by the United States fin accord ance with the law in force at the lime such obligations were incurred"