, 1923-02-07

CONTINUED from Page One.D
In Joint session in order that I may
submit to you the report of the world
war foreign debt commission. cover
ing its accepted proposal for the fund.
ing of the debt due to the United
States from the. government Of Great
Britain. This report concluded on
February 8. 1929. reads as follows:
The President.
The world war foreign debt commits
sion created under the act of congress
approved February 8, 1922, having re.
ceived the mission appointed by the
British government to consider the
funding OF the demand obligations of
that government held by the United
States report as follows:
The British government designated
as its representatives the Right Hon.
Stanley Baldwin. chancellor Of the
excheQuer, and Mr.. Montasu Nor,
man. the governor Of the Bank OF
England, who hav conferred with
the commission in Washington and
presented facts relating to the posi-.
ton of tho British government. The
commission has also met frequently
in separate sessions and has given
the fullest consideration to the prob
lens involved in funding Of the Brit
ish debt to the United States.
1t become manifest at tho outset
that It would not be possible to effect
an agreement for funding within the
limits of the act approved February
0. 1922. and the commission has,
therefore,. considered the practicabtlity
of a settlement on some other basis,
and though 1t has not been able, in
the absence Of authority under the
law, to conclude negotiations, it unan.
imously recommends for submission
to congress n settlement with the
British government as follows:
Principal OF notes to be refunded
$4,o74,s1S, 1894. A
Interest accrued and unpaid up to
December Is. 1922. at the rate of AZ
per cent $629. sac, LOG. 90.
Deduct payments made October 16D
1922, and November 10, 1922. with in.
terest at An per cent thereon TO De
cember 10. 1922. 800, 526, 37S.6 SO. Total
S4,604,12S, 0s5. "A.
To be paid in cash S4,12S. os5. IA.
Total principal of Indebtedness as
OF December Is. 1922. for which Brit
ish government bonds r to be issued
to the United States government at
par $4,000. 900, 900.
PART TWO
The principal OF the bonds shall be
paid in annual installments on q
fixed schedule, subject to the right OF
the British government to make these
payments in three year periods. The
amount of the first years installmen
will be S23, OO0. 900 and these annua
installments will increase with due
regularity during the life of the bonds
until, in the sixty second year. tbs
amount Of the installment will b'
S175. 900 900. the aggregate install
ments being equal to the total prin
cipal OF the debt.
The British government shall have
the right to Iny off additions
amounts OF tho principal of tho bond:
on anyinterest date upon ninety day.
previous notice.
Interest Is &c be payable upon tht
unpaid balances at the following rates
on December is and June Is of eacf
year: 3 per cent semi-annualiy, Junt
Is. 1923 to December Is. 1923, inclu
sive: 81 per cent semi.annually
June 10. 1923. until final payment.
For the first five years n half the
interest may be deferred and added tc
the principal. bonds to be ISSUED
therefor similar to those Of the orig
inal issue.
Any payment of interest or Of prin
cipal may be made in any United
States government bonds issued since
April 6. 1917. such bonds to be taken
at par and accrued interest.
Tho commission believes that q
settlement of the British debt to the
United States on this basis is fair AND
Just to both governments and that its
prompt adoption will make n most
important contribution to interna
tional stability. The extension OF
payment both of the principal and in
terest over a long period will make
for stability in exchange and promo
ton of m between tho two
countries. The payment Of principai
has been established on a basis Of
positive installments of increasing
volume, firmly establishing the prin
ciple of repayment OF the entire cap
ital sum. Tho payment of interest
has been established at the approx
imately normal rates payable by
strong governments over long terms
of years.
1t has not been the thought of the
commission that It would be just tc
demand over a long period tho high
rate of interest naturally maintained
during the var and reconstruction
and that such an attempt would de
feat our efforts at settlement. Be
yond this the commission has felt
that the present difficulties of un'
employment and high taxes in the
United Kingdom should be mot with
suitable consideration during the
early years. and. therefore the conn