Evening star., 1923-02-01
DEBT COMMISSION
|. MEETS TOPRESENT
| PLAN TO CONGRESS
British Embassy Notifies
State Department of Ac-
cepting U. S. Program.
$500, 900, 600 IN ANNUAL
PAYMENTS ESTIMATED
More Details Awaited From Lon
don Before Final Course of
Action is Determined.

Secretary Mellon, chairman of the
American debt funding commission,
today called a meeting OF the com
mission for late in the afternoon to
make plans for presenting to Con-
| gress the American British agree
ment accepted in London yesterday.
The call for the meeting followed
official notification of the State De-
partment by the British embassy
| that the British cabinet had acted
| favorably on the American funding
plan.
| More Details Awaited.
More details of the British action
are expected through diplomatic chan
| nels during the day and upon the
completeness of these advices will de
pend how far the American commits
sion can go at today's meeting in out
| lining it's next move
Some reports received in govern
ment circles indicated, it was said.
! that the British acceptance, which
was reported by Ambassador Harvey
as in principle" was on a basis
which would not materially change
! even minor details Of the plan as
! suggested. by the American commits
sion. Lacking final information on
/ this point, however, debt commission
officials declined to indicate the
amount of payments which the 3 and
! 31s per cent interest rates, with the
/ one-half OF l per cent amortization
| payment would bring to the United
! States annually in retirement of the
British obligations.
Annual Payment Estimates.
Various estimates OF the annual
payments ranged from s135, 100000 to
more than s20o,0o0.00O. The interest
rate OF per cent. effective for the
! first ten years. would, on its face,
mean a payment of about S135.000 900
! a year, but other phases of the pro-
gram may operate to change this
amount
One of the first questions before
| the commission is a decision whether
! to ask for a general amendment of
| the present law to encompass the
| British settlement, or TO rely instead
| upon acceptance of the British terms
| specifically by resolution of Con-
i gress.
| Sentiment appeared to be gaining
| in the commission today for the lat
| ter plan. which was said to have the
support of President Harding. SEN
ator Smoot and Representative Bur
| ton, the two congressional members
| of the commission, have stood for
general changes in the law liberal
| izing it's provisions and giving the
commission full power to complete
| the settlement. 1t was declared at
| the Treasury, however, that the COM
! mission members would get together
! speedily on some means of procedure
| that would guarantee early action by
| Congress.
/ Plans for presenting the necessary
| legislation to Congress as soon as
possible were discussed during the
| day at a conference between Presi-
dent Hae&ing and Senators Lodge of
| Ma sachusetts and Watson Of Indi-
ana, two of the administration Senate
! leaders
/ The President was said by Senator
Lodge to consider cceptance of the
settlement plan at this session OF
| Congress as of prime Importance.
Procedure Undetermined.
AS to what procedure should be
followed in submitting the question
of ratification of the agreement to
| Congress, there appeared today to be
a division Of opinion among mem
bers of the commission. Immediate
| changes in the law broadening the
powers of the commission so that &c
could complete the settlement, most
| of the provisions of which ere out
side of the present debt-funding act,
was represented as the course favor
ed by some OF the members, including
Secretary Mellon, who Is chairman
and Senator Smoot, republican. Utah,
and Representative Burton, rspuoli-
can, Ohio.
Presidents Desire.
| President Harding. however, is un-
| derstood already to have communal
| Gated to members of the commission
the view that Congress should act on
the settlement by resolution, so as to.
permit a vote on the straight issue of
its acceptance or rejection. Many
democratic leaders in the SerSte have
indicated privately that thay would
not oppose acceptance of the Brit
ish settlement, but would oppose
divergence in official views of this
point is expected to be quickly a6-
justed when the commission meets.
Later Representative Burton also
| talked over the situation with the
President.
while these conferences were In
progress actual preparation of au-
| thorizing legislation was under way
at the Treasury Department and,
although officials there refused to dis
cuss details, ii was indicated that the
| bill probably would deal specifically
with the proposed British settlement
and would not embody a general re-
! peal of the limitations hitherto set
by Congress upon funding agree
ments.
| After sending the British notinca
ton to the State Department. the
British ambassador, Sir Auckland
Geddes, called on Secretary Hughes
and was invited to confer, also. with
the American commission after its
meeting later in the day.
j