The Washington times., 1923-02-01
Congress to Be Asked
For Change in Law So
Deal Can Be Ratified


Acceptance BY the British cabinet
of the American plan for funding
the $1,000, 100000 debt of Great
Britain to the United States will
be followed Immediately by a re-
quest to Congress from President
Harding for liberalization Of the
debt-funding law, Administrator Of
ficials said this afternoon.
ST am very happy to hear it,"
said Senator Smoot Of Utah, a
member Of the American debt com.
mission, when informed of the
action Of the British cabinet. "It
will 60 long wayG toward clearing
I'D the debt problems between that
country and the United States"
Now up 70 Congress.
Smoot said the next move would
be submission to Congress Of the
full American plan, with q re-
guest that the law be so altered
the plan could be ratified and the
debt negotiations with Great Britain
concluded.
While he would not suggest the
time when the plea for liberaliza.
ton would be brought to the
Capital, SmoOt held high hopes
we can get favorable action at this
session"
Especially among Administration
Senator's there was great jubliation
over the British move, which came
rather 40 q sensation, in view Of
the utteranCeS Of Sir Stanley Bald.
win. chancellor Of the exchcquer,
on his return to england, disparag.>
ing the American Congress and the
funding commission.
News Of the British acceptance
was transmitted to President Hard.
ing at the White House by the
international News Service. The
President expressed qualification at
the successful termination Of the
negotiations, but had no comment
to make.
Secretary Of the Treasury Mellon.
chairman OF the American Debt
Funding Commission, also was
pleased at the announcement from
London, but would offer no COM
ment until official notification has
been received from London. and it
can be seen what conditions, If any,
are attached to the British &C.
ceptance.
Secretary Mellon was not certain
just what changes in the law are
necessary. nor could that be de-
termined, he said, until details OF
the British acceptance are received.
He indicated, however, that the
Administration would ask q "gen.
eral broadening" Of the existing
law that will enable the commission
not only to settle the British debt,
but also to settle those OF other
foreign nations without each time
appealing to Congress.
Seen To Affect All Debts.
1t is q plain notification to the
world. officials said, that the Amer
lean war debts are legitimate obi
cations, and must be recognized az
such, and that all talk of cancella-
ton can now DO seen to be utterly
futile.
That there will be some opposi-
ton to the settlement ia Congress
seemed certain today, but just how
much could not be determined. Ad-
miniStration leaders generally be.
lieved Congress would approve the
settlement after some debate.
Republicans hailed the settlement
a. a real achievement" while the
Democrats were, for the most part
silent.
"It is very gratifying to hear the
British have taken this STEP" said
Senator Watson Rep.) of Indiana, an
Administration leader. "It will have
a stAbilizing effect on the finances of
the whole country and will have a
wholesome effect elsewhere"
ra~n~,. Not Tp,%h,,~snm%An
Senator Capper Rep) Of Kansas,
leader of the Senate farm bloc"
was not as enthusiastic in his in
dorsement of the offer and its &C.
ceptance.
1T have no objection to the length
Of time, but the question is whether
We can accept a lower rate of inter
est than our own Government Is pay
| ing on it's own war bonds" said Cap
| per. "WhateVer else, it should have
| a beneficial effect in this country"
1T will help settle the financial
situation every where and improve
conditions over our entire country"
said Senator Cooling of Idaho.
Il am not surprised to hear the
British accepted our offer" said
Senator Mcclellan Dem) of Ten
nessee. ut would be exceedingly
liberal and entirely too liberal in
view Of the fact that we are paying
so much more interest on money
our own Government is borrowing"
Other Democratic leaders refused
to comment until they had studied
the offer in detail.
Under present law the American
commission is bound not to negotia-
ate debt-funding with Great Britain
on any basis other than with an
interest rate Of AZ per cent, and
payment of the principal within
twenty-five years.