Evening star., 1923-02-07
TEXT OF PRESIDENTS
MESSAGE.
Continued from First Page.)

tries Immediately concerned, but
throughout the world.
This settlement between the
British government and the United
States has the utmost significance.
1t Is a business settlement fully
preserving the integrity of the
obligations. and II represents the
first great step in the readjustment
of the intergovernmental obliga-
tions growing out of the war.
Respectfully submitted.
A. w. MELLON. chairman.
CHARLES E. HUGHES.
HERBERT HOOVER
REED SMOOT.
THEODORE E. BURTON.
Basis "Fair and just"
In it's comments upon the ar
rangements negotiated the COM
mission itself has said essentially
everything necessary to commend
the agreement to your sanction
Note that the commission urges
that the settlement is on basis
which lis fair and just to both
governments" and will make a
most important contribution to in
ternational stability" More impor-
tant still is the closing observation
. that lit is business settlement.
fully preserving the integrity of
the obligations, and 1t represents
the first great step in the readtust-
ment of the tntergovernmental
obligations growing out OF the
war" In these observations / most
heartily approve.
The call of the world today is for
integrity Of agreements. the sane
tity of covenants. the validity of
contracts. Here is the first Clear
ing OF the war-clouded skies in
debt-burdened world, and the sin
cere commitment of one great ma
IaN Rw,n al N
pledges and discharge Its obliga-
tions i'm the highest sense OF ttnan-
ciai honor.
Much ClamOr to Cancel.
There is no purpose to report
that your commission has driven
a hard bargain with Great Britain,
proclaiming a rare generosity ir
settlement. Amid widespread
clamor for the cancellation OF
world war debts. as fancied but
fallaciouS contribution toward
peace-a clamor not limited to the
lands Of debtor nations, but insist
ent among many of our own peo-
ple---the British commission came
to make acknowledgment of the
debt, to put fresh stamp of ap2ro-
val upon its validity and agree
upon terms for its repayment.
ming that Great Britain could not
undertake any program of payment
which would conform to the limita-
tions of time and interest rates
which the commission had been au-
thorized to grant. But here was
great nation acknowledging its OBJ
legations and seeking terms IN
which it might repay. SO your COM
mission proceeded to negotiate in a
business way for fair. and just
settlement. Such settlement had
to take into consideration the APP
proXimately normal interest rates
payable. as the commission sug-
geSts. by strong governments over
long term of years" with tenn
porary interest rate and suitable
options adjusted 10 the tremendous
problems of readjuStment and re-
cuperation. Your commission went
so far as ii believed the American
sense of fair play would justify.
Even then the British debt COM
mission did not feel justified by it's
instructions to accept the proposal.
Only after submission to the Brit
ish cabinet was the proposal of
your commission accepted. and I
bring il to you, with the earnest
recommendation that il be given,
so far as Legislative procedure will
admit, cordial and prompt ap-
proval.
OF Vast Importance.
A transaction of such vast i'm
portance naturally has attracted
widespread attention and much of
commendation. 1t is very graft
Tying thing to note the press and
public have uttered substantially
unanimous approval 1t means
vastly more than the mere fund
ing and the ultimate discharge of
the largest interna tional loan ever
contracted. 1t is recommitment
OF the English-speaking world to
the validity of contract; il is in
effect a plight against war and
war expenditures and a rigid ad-
herence TO that production and re-
trenchment which enhances sta
bility precisely as it discharges
obligations.
It cannot be unseeniy to say IL,
and 1t is too important to be omitted,
the failure of the British undertaking
would have spread political and econ
omic encouragement throughout the
world and general population would
have likely followed In it's wake But
here Is kept faith-willingly kept, let
il be recorded-and a covenant of
peace no less effective than it would
be II joint British and American op-
position to war We're expressly agreed
upon. IL is covenant of peace and
alton. IT Is new element of finan-
cial and economic stabilization, when
the world is sadly needing a reminder
of the ways Of peace. 1t is an ex-
ample OF encouragement and inspira-
uon, when the world is staggering In
dtseouragement and bowed with the
sorrows of wars that were and fears
Of wars which humanity is praying
may be avoided.
Hopes for Approval.
Ordinarily / should be reluctant
10 add this question to a congress
sional program which is already
crowded. in view of the short
period remaining of your session.
But IL is of such outstanding i'm
portance to us and to the world
that l should be remiss il / did not
invite your sanction even amid
crowded calendars and pending
problems of great Importance. And
] hope you will be glad to approve
If the debtor nation could decide
to assume the great obligation. in
two cabinet sessions, in the face of
enormous financial and economic
difficulties, surely the deciding
authority OF the creditor nation
Will be ready to approve in a spirit
appropriate to the great transac-
tion and with promptness which
viii convey betting appreciation.
! am not unmindful of the disposi-
tion to pledge the application of an
ticipated payments in giving sane
tion to the settlement. 1t is not
necessary to remind the Congress
that the use of meneys secured in
the repayment of war loans has been
pledged by the very grant of authori-
ty to make the loans. The repeal of
that commitment is always within
the authority of the Congress if such
a repeal is deemed wise, but II will
best comport with the importance
of such an international transaction