Evening star., 1923-01-07
j. s. DEBT-FUNDERS
AGREE ON POLICY
Prepare to Open Tomorrow
Formal Discussions
With BritonS.
VIEW WORLD PROBLEMS
Bank of England Official Describes
Existing Situation as Vicious
Debt Cycle.

Members of the American debt
funding commission prepared at
three-hour conference yesterday
afternoon for the opening tomorrow
of formal discussions on an arrange
ment for funding Great Britain's 8 war
time debt TO the United states. Their
views, members said upon leaving
were in accord on general pollcy.
While the commission was In seS-
sion, Gov. Norman of the Bank or
England, a member of the British
delegation, was caller at the Treas
ury. In the cource of talk with
newspaper correspondents he eX-
pressed hope of an early agreement
on British funding questions, adding
that if it so happened 1t would be
a great step toward solution OF eH-
isting world problems.
I'VE view the situation as a great
vicious cycle Of debts" Gov. Nor
man said, and II looks like here III
Washington, D. c.. Is the place to
make the first break In that cycle.
'If we can make q settlement, then
other settlements will follow. 1t will
be like knocking nine pin, 1t is
start"
Enter with Clear Slate.
Gov. Norman said in effect that the
British delegation would enter the
conference tomorrow with clear slate
American commissioners likewise
saiA they were ready to sit at the
tables and talk it over. There were
continued reports, however, that the
foreign representatives were pre-
pared to lay down a program as
basis for beginning the negotiations
II was learned that the American
commissioners had gone over the
whole category of world problems IN
their discussion yesterday. This was
assumed to mean that they had con-
sidered them from angles in which
they might possibly affect a debt
funding arrangement with the Brit
ish. Those problems. it was eX-
planned, would naturally have a bear
Ing on amounts Great Britain might
desire to pay annually as well as on
the whole amount of money to be
withdrawn from Europe in the next
few years in settlement of wartime
obligations.
Recent suggestions here that any
Anglo American agreement reached
would probably serve as a guide line
for future funding by Great Britain
as well as the United States We're
after yesterdays meeting at the
Treasury. 1t was explained that
every nation owing the United States
also owes Great Britain and II was
said to be only natural to suppose
that the forthcoming negotiations. If
successful, would lay down a prece-
dent.
Answers to Britain.
Chairman Mellon and Secretary Wads-
worth of the American commission re-
tterated after the conference express
6ions of hope that an early agreement
would result from the British delega-
tons visit 1t was declared that while
no action Of a binding nature had been
taken, the American commissioners
knew pretty well where they stood on
many phases of problems likely to come
before the joint meeting. This was in
terpreted in some quarters as indicat-
ing that the discussions yesterday in
volyed what answer should be made to
some of the many possible propositions
that might be laid down by the British
The home delegation. 1t was explained
always must stay within provisions OF
the. law by which it was created. The
various pha8ss of a settlement between
theSlaw's maximum and minimum pro-
visions, however, were regarded as cer-
tain to have entered into the talk Of the
American commissioners. Mr.. Mellon
said however, that the discussions had
not gone to such lengths, adding that
they had been only Of a general nature