The New York herald., 1922-08-03
Several Senators Repudiate
Balfour Plan and Call 1t
an Evasion. 49,.
SHOCK TO BONUS RAIDERS
Borah's Charges of Influence
Towards Cancellation Are
Recalled.
Special Dispatch to THE NEW York HERALD.

Special Dispatch to THE NEW YORK HERALD.
New York Herald Bureau
Washington. ID. c., Aug. e.5
Under the act of Congress Presi-
dent Harding is obligated to insist
that the loans made by the United
States to the allied Powers, now ris-
ing, with interest, above the s11, ,000.-
600 900 mark, be treated as independ-
ent transactions and that the debtor
nations continue negotiations looking
to the funding of the American claims
into long term obligations.
This in effect was the position taken
to-day by high Government officials in
regard to the British note, in which
the suggestion was made that the
debts be treated on an international
basis and that a settlement be made
on the basis of general cancellation
and the scaling down of German rspa-
rations.
American policy, for the present at
least, is defined in the act creating the
allied debt funding commission, whose
duty it is to put the debts on a payable
basis through funding operations which
are now being studied. 1t was stated
authoritatively that 1t Is not the inten-
tion of the Executive branch of the
Government to make recommendations
to Congress that would reverse the pol
icy outlined in the act creating the
fund ing commission.
Great Britains suggestion that pay
ment OF her debts to this country should
be made contingent on payments on the
debts due her from other European
Powers was repudiated and character
lied as an evasion OF the issue as far
as the United States is concerned by
several leading Senators to-day.
Senator McCumber IN. d.. chairman
If the Senate Finance Committee, said !:
I'VE will never cancel our debts. Each
nation must meet its own obligations.
Great Britain is morally bound to pay
her d ebts to US regardless of the set
tlement of debts owed her by other ma
iions. The collection OF her debts IL
her own problem and not ours. There
is a pronounced sentiment throughout
the country that our war loans should
be collected as soon as possible"
I'VE have been banking on the money
from the British debt to pay the bonus
bill." Senator Watson (Ind) declared.
The Indiana Senator's reference TO the
bonus 1nuicaCeu tnat tne BTlIlSn nOIt
was somewhat OF a jolt to the Senators
who had supported the bill on the as.
sumption that the era of payments or
the s11. 900, 900. 900 debt was at hand.
TT will be a long time before Congress.
authorizes cancellation of the wal
debts" said Senator Hitchcock (Neb.) }
1T will never authorize It unless thu
American people are convinced there !.
no other way to save the situation i
they see American trade destroyed and
American business upset and all othei
efforts to restore stable conditions fail
then they might consider Il, but not unit
then"
Senator Hitchcock pointed out tina
the American funding commission has M
authority even to consider the suggestion
of Great Britain for cancellation.
on several occasions Senator Boral
has charged On the floor of the Senat,
that tremendous influences are at worl
10 have this nation cancel It's loans
Several Senator's recalled that soon after
the armistice Premier Lloyd Georg'
made a proposal TO former President
Wilson that all war debtes be cancelled
President Wilson replied that the Ameri
can people would never stand for such Z
policy He pointed out that the money 70
the loans was obtained from the masses
of the people out of the proceeds OF LIB
orty loans, with the distinct understand
ing that every dollar loaned would b.
paid with interest.