The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-02-07
Full Text OF
Presidents
Message

q
To the Congress:
You have been asked to as
semble in joint session in order
that may submit to you the
report of the World War Foreign
Debt Commission, covering its
accepted proposal for the fund
ing of the debt due TO the United
states from the government OF
Great Britain. This report, COM
Guided ON February 8 1873. reads
as follows
The President
The World 81 foreign Debt
Commission created under the set
of 4 Es0ngrena approyHd February
1922. having received the mis-
sion appointed BY the British
government to consider the fund.
ing Of the demand obligations Of
that government held by the
United States, reports as follows:
Discussed Frequently.
The British government desig-
mated as its representatives the
Right Honorable Stanley Baldwin,
Chancellor of the Exchequer, and
Mr.. Montagu Norman, the gov
ernor. of the Bank OF England.
who have conferred with the COM
mission in Washington and pre-.
scented facts relating to the posi-
ton of the British government.
The commission has also met fire.
quently in separate sessions and
has given the fullest considera-
ton to the problems involved in
the funding of the British debt
to the United States. 1t became
manifest at the outset that 1t
would not be possible to effect
an agreement for funding within
the limits of the act approved.
February 8, 1929, and the COM
mission has,. therefore, considered
the practicability of a. settlement
on some other basis, and though
it has not been able, in the
absence of authority under the
law, to conclude negotiations, it
unanimously recommends for sub
mission to Congress a. settlement
with the British government, as
follows:
Principal of notes to be
refunded 4'OI4,ole'S0e'a4
Interest accrued and
unpaid up to Dec. Is,
1922, at the rate of
AZ per cent. ........ Sz9 Sab, lOb.S9
4.7o4.sS4.4s5
Deduct payments made
Oct is, 1922, and
Nov Is, 1922. with
interest at Az per
cent thereon to Dec.
Is, 1922. 1VV'o%o'S's'e'
4.so4, 1ss.os5.74
To he maid IN cash 49,. 4.12S,os6.74
Total principal OF in
- debtedness as OF
Dec is. 1929, for
which British gov
eminent bonds are
to be issued to the
United States Gov
ernment at par. $500, o0o. 100000
The principal of the bonds shall
be paid in annual installments on
a fixed schedule, subject to the
right of the British government
to make these payments in three
wear periods. The amount OF
the first years installment will
be $4,000, 900 and these annual
insta llments will increase with
due regularity during the life of
the bonds until, in the sixty
second year, the amount OF the
installment will be $175,OOO,OOO,
the aggregate installments being
equal to the total principal OF the
debt. .,s.
May Increase Payments.
The British government shall
have the right to pay off ad.
ditional amounts of the principal
of the bonds on any interest date
upon ninety days previous notice.
Interest is to be payable upon
the unpaid balances at the follow
ing rates, on December Is and
June Is of each year: 3 per
cent semiannually, June is, 1923,
TO December Is, 1882. inclusive:
81 per cent sen1iannually. June
Is, 1898. until final payment.
For the first five years one
half the interest may be deferred
and added to the principal. bonds
to be issued therefor similar to
those of the original issue.
Any payment Of interest or OF
principal may be made in any
United States Government bonds
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