Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-02-01
in the financial community wa
strongly in favor Of acceptance
Washington Pleased

Washington, Jan. 81. (By A. P.)--
Advices announcing the acceptance
today by the British cabinet OF the
American debt funding suggestions
were received by official Washington
with undisguised satisfaction. The
.yicious cycle of world debts" had
been taken and that the result would
be q substantial improvement In
world conditions.
On the basis Of press dispatches
which were supplanted later by q
brief cable to the State Department
from Ambassador Harvey In London
members of the American debt fund
ing commission began immaculate
preparation for presenting the terms
of the tentative settlement to Con-
gress.
Some further negotiations are exc
pected to be necessary. however.
since, according to Mr.. Harveys
cable report, the British government
agreed to the American suggestions
lin principle"
AS a result of Mr.. Harvey's cabled
message it was stated ofnciaiIy.
plans would be made for q meeting
of the American Commission late TO-
morrow or early Friday. III iurtner
negotiations are necessary, they WI!
be conducted with Sir AUCKLAND
Geddes, the British ambassador, act
ing for his government.
Members of the American commits
sion appeared today to be divided
as to the procedure to be followed
in submitting the question OF ratl-
fication of the agreement to Con-
gress. Some of them. including
Secretary Mellon, who il chairman.
and Representative Burton. Republic
can, Ohio, were represented as urg-
ing immediate changes in the law
broadening the commission power so
that it could complete the settle
ment.
1t was understood. however. that
the President favored action by
Congress on a resolution by which
Congress could vote either to accept
! or reject the settlement. most OF the
provisions of which are outside the
present foreign debt funding act.
The American suggestions called
for final payment of the nearly So
100000 debt in siXty-two years
with interest rates of three per cent
for the first ten years and three ana
| enc half per cent thereafter, and an
! amortization rate of one half of one
per cent OF the principal dHiludiiS.
| The law prescribes an interest rate
! of four and one quarter per cent and
| pa"ment in twenty five years. and
| Congressional action Of some kind.
therefore, would necessary before
| the settlement could become actually
! operative.
| Senator Smoot and Mr.. Burton
| were understood today to have be-
| gun the preparation of a bill to give
| the commission the authority d.emed
| necessary with the expectation OF
! presenting it early next week.
! Members of the commission to-
night emphasized the need for get
| ting something done at this session OF
! Congress which will terminate
! March 3.
| The British debt, as Of last May
| Is. aggregated S4,074.S1S.35S princi-
| pal and s611. 044.201 interest Since
, that time s100O00.000 has been paid
| on the interest charges accruing SUBJ
sequently. although the total of these
| charges has never been made public.
| Treasury statisticians unofficially
| computed the total figure at more
| than ten billion dollars which Great
! Britain will have paid at the end OF
! the sixty two year period. il the
| rates made public or contained in
| the final approval by the British
| cabinet.