The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-01-13
AGREEMENT NEARS
IN DISCUSSION Of
ENGLISH WAR DEBT
Many Essential Points Cleared
at Meeting of Two Commits
Sions-- British Financial
Status Explained

WASHINGTON, Jan. 12.--Conversa-
lions between the British and Amer
lean debt commissioners progressed
today to a point where it is believed
the matter of the terms of the set
Element of Great Britain's debt of
more than four billions of dollars can
be approached at the session Monday.
An agreement in principle. at least.
still Is forecast before the end of
next week, at which time the British
commissioners plan to depart for
London.
An Ame acstn spokesman Tor the
commissions declared that after to-
days sessions that great deal of
progress had been made in clearing
up many points essential to gem
eral assessment of the whole prob
lem. 1t was emphasized that par
ticular care had to be taken that
the settlement finally made would
not recreate fluctuations in ex-
changes and international trade.
Consider Form of Payment
Considerable attention has been
given to the form of repayment of
the principal of the debt and it was
indicated that an annual installment
plan had been uppermost in the con-
versations on this particular point.
Whether there will be a deferment
of the yearly payments on account
of principal until Great Britain has
more fully recovered from her pres
ent Industrial depression, remains TO
be determined.
While 1.-THE method of meeting the
annual payments Will be through the
purchase OF exchange, 1t was reiter-
ated that funds for such purchases
must come from British internal
revenues. In this connection IL was
pointed out that Great Britain had
balanced her budget and cut her ex-
penses and the belief was held that
as British wealth increased and that
as expenditures decreased, payments
could be met without actually IN
creasing taxes.
Additional figures as to financial
conditions in great Britain were
made public today on behalf of the
debt commission. These showed
that the total of the British public
debt on the first OF last April was
1852 100 pounds, the interest on
which was 335.000.000 pounds. There
is owing to the British government
by the European nations total of
1.5O3.642,O pounds, exclusive OF ap-
proximately 100000 600 pounds in &C
crued and unpaid interest. STANDBY
Baldwin, British chancellor of the
exchequer and head of the British
mission, declared that these debts
were in a frozen state.
Congress to Act.
While terms are yet to be dis
cussed. there are increasing indica-
lions today that the settlement
agreed on would be we'll without the
limitations fixed by Congress, GER
tajnly so far as the time of pay
ment of the principal was concerned.
Administration officials anticipated
no particular difficulty in obtaining
congressional approval of the terms
that may be fixed, but II was stated
at the White House that should Con-
gress fail to act before the end OF
this session, President Harding
would not call an extra session of
the new, Congress to consider the
matter.
The White House spokesman added
that the executive was not inclined
to favor the calling of an extra ses-
sion for any reason that now APP
naarad iinnn the horizon.