Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-29

London, Jan. 2S.-(By A. P.)-The
frank and plain spoken exposition
made by Stanley Baldwin, chancellor
Of the eXchequcr, of what he con-
siders the reason for the failure of
his mission to Washington in an en-
deavor to arrange for the funding
of Great Britain's debt to the United
States. comes as an unpleasant sur
prise to the British public.
The public has been led by semi
official utteranccs to believe a salts
factory adjustment Of tho matter
would not be difficult.
Acceptance of the American terms,
and, as Mr.. Baldwin puts the case,
there is no alternative to acccp-
tancc. will mean, it is said, a yearly
burden of more than 30,000,O 900
pounds on the British cXchcqucr, for
the next sixty years.
it is clearly evident from state
mcnts published hero during the
week end that the British govern
ment had anticipated being able to
fund the dc.t on an interest basis
nearer two per cent than three per
cent, or 20,000000 pounds annually.
According to these statements, an in
formal promise was made by two
prominent American diplomats at n
luncheon party given at No. 10
Downing street, last summer, that
the funding would be carried out on
that basis. 1t is asserted that Mr..
BOnar Law was present at this
luncheon.
The American diplomats arc not
named, but they are said to have
been OF 1.-The highest standing" There
is no suggestion that the British,
government regarded these informal
promises in any way binding.
The cabinet is said to he divided
on the subject. Some of the minis
tiers, and it is reported these include
the prime minister, favor accepting
the American terms, but others in
cline TO delay in acquiescence tc
them. The press also is similarly
divided.
On the other hand. some of tho
newspapers are blaming Mr.. Bald
| win for the present situation. AS an
| example. the Sunday XpresS re-
proachcs MIR. Baldwin for looking
| more like an American emissarI
| than q British chancellor. This
newspaper also raises point that
| seems a certain to attract a deal OF
attention. namely that the American
| terms require payments in American
! currency. 1t declares q Willingness
! to accept the American terms, but
| only provided we can pay in our
| own sterling"
The Sunday Express asserts that
any obligation to pay in American
currency would be unthinkable. be-
cause any attempt to meet the debt
| in dollars could only mean the dc
! probation of the ound and event
| ually default with probable COLLAPSE
| The majority opinion as expressed
in the London papers this morning
| faVOrS> acceptance of the American
terms for funding the debt. though
| several at the same time wistfull!
| look for reconsideration at a later
| date. None conccalS its regret that
more favorable terms We're not OBJ
| tainahlc. but the comments are gen
orally expressed without bitterness
The Daily Telegraph thinks hat
| the balance of the argument is iI
| favor of accepting the American
| terms, declaring: IF the debt is no,
| funded at once. it will hang like q
| cloud over home politics. ruin the
| budget and retard individual recov-
Try. In addition. it will tend to be-
devil Anglo American relations. II
would, therefore. be better, as q
matter of eXpedicncy, to settle inn
mediatoly and trust to time for pos
siblc revision later"