The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-01-18
BRITISH. LIMI I
KILLS DEBT
FARLEY
Plan to Cut Interest Rate
Finally Rejected by y. s.
Negotiators.

"No agreement"
This is the result Of the nego.
tiations between the British and
American debt funding negotia-
lions.
There have been no violent dis
agreements, but the situation sim
ply cannot be adjusted under
existing conditions, according to
the negotiators, and it is now GER
tain the 5000, 900, 900 British debt
will remain an unsecured promis-
sorry note for some months longer.
Ended Where Began.
The discussion ended today practi-
cally where they began. The British
were not empowered to arrange set
Element at an interest rate greater
than s per cent, and the Americans
were confident Congress would not
approve any such rate, az the United
States is paying ~ per cent on some
of the money it loaned 70 Britain.
When the two commissions met
today in the final meeting Of the
parlAy. the American commission
refused to be moved from q posi-
ton which Congress- would not
sanction. The British demanded
more. The American spokestnen be-
lieved they were liberal, II not
actually generous, In their treat
ment OF the British suggestions.
But the attitude Of the British was
such, owing to iron-clad Instructions
from Premier Bonar Law and his
cabinet, that the negotiations never
reached the point where either side
could properly submit proposals.
The British spokesman partici-
pated In today's session In d per.
functory fashion, for II merely was
q 1eave-talSing to reassemble at some
future day. The British ENJOYS,
Stanley Baldwin, chancellor OF ex-
chequer, and Montagu Norman, gov
ernor Of the Bank Of England,
stepped out OF the Treasury Depart
ment after the session, making 1t
plain that the next move must be
dictated from London. The British
cabinet win consider Baldwin's re-
port and then decide upon its future
to the United States an
TO resumption OF negotiations with
the United States.
The misunderstanding a. to what
the American Government can ex-
pect from Great Britain crises out
of difference of viewpoint over
credit limitations in Great Britain
S.<allSNV-
Baldwin insisted that the British
demand for fixing 8 per cent in
terest basis upon which the .obliga-
tons may be funded, because OF the
fact that the existing rate of the
Bank Of England Is per cent. There
il little dispute over the question Of
the maturity Of the obligations when
they are converted. This Govern.
ment prefers the longer rather than
the shorter Ynaturities.
Transferred to LondOn.
Inability Of the commissions to
come to q definite understanding
transfer the controversy to London.
Chancellor Baldwin told members OF
the American commission today that
as soon as he reaches London he
would acquaint Premier Bonar Law
and his associates, more fully than
has been possible by cable, with the
views Of this Government, and en-
deavor to perfect a program upon
which England again may seek con.
ference with the debt funding com.
mission here. It was assumed that
Chancellor Baldwin again will be
designated at some future time
probably several weeks hence, to re.
turn to Washington.
Breaking off of negotiations tenn.
porarily leaves the Administration in
an embarrassing position.