The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-02-07

Continued from First Page.)
issued since April s, 1917, such
bonds to be taken at par and ac-
crued interest.
win Aid Commerce.
The commission believes that 4
settlement Of the British debt 10
the United States on this basis
is fair jand just to both govern
Inents, and that it's prompt adoD-
ton will make q most impOrtant
contribute n to international
stability. The. Extension of nav.
ment both Of the principal and
interest over q long period win
make for stability in exchange
ana promotion OF commerce be-
tween the two countries. The
payment OF principal has been
established on q basis OF posi.
tive inatallments Of increasing
volume. firmly establishing the
principle OF repayment 0f the
entire capital sum. The pay-
ment OF interest has been estab.
hshed 1t the approximately nor
NAL rates payable by strong gov.
eminent over long terms sc
years.
II has not been the thought az
the commission that II would Re
just to demand over q long nerio(l
the high rate Of interest naturally
maintained during the war and
reconstruction. and that such an
attempt would defeat our efforts
90 settlement. Beyond this the
commission has felt that the pres
ent difficulties Of unemployment
and high taxation in the United
Kingdom should be met with suit.
able consideration during the
early years. and therefore. the
commission considers it equitable
and desirable that payments dur
inG the next few years should BE
made on such basis and with such
fiexibility as will encourage eco
nomic recuperation not only In
the countries Immediately con.
cernGd but throughout the world.
Step im RcadjustunAmt.
This settlement between the
British government and the
United States has the utmost sig.
nificance. It IL Q business settle
Tnent fully preserving the intes.
rity Of the obligations. and Il rep
resents the first great step N the
reimbursement Ut the tntergovern-
mental obligations growing out Of
the war.
Respectfully submitted.
A. w. MELAON. Chairman.
CHARLES r. HUGHES.
HERBERT HOOVER,
REED EMOOT.
THEODORE =. BURTON.
In its comments upon the ar
rangenents negotiated the conn
mission itself has said essentially
everything necessary to commend
the agreement to your sanction.
Note that the. commission urges
that the settlement II on a basis
which is fair and just to both
Governments" and "will make q
most important contribution to
international stability" More i'm
portant still is the closing OBJ
servation that ut is q business
settlement. fully preserving the
integrity of the obligations, and
It represents the first great step
in the readjustment Of the inter.
governmental obligations growing
out Of the war" In these obser.
vations ] most heartily approve.
Clears WaF-cIOuded Skies.
The call Of the world today il
for integrity Of agreements, the
sanctity Of covenants, the validity
of contracts. Here is the first
clearing of the war-clouded skies
in debt-burdened world, and the
sincere commitment of one great
nation to validate its financial
pledges and discharge It's obliga-
tions in the highest sense Of finan-
cial honor.
There Is no purpose to report
that your commission has driven
a hard bargain with Great
Britain, or to do less seenly
thing In proclaiming a rare gem
erosity in settlement. Amid wide.
spread clamor for the cancelIa-
ton, of World War debts. as a
fancied but fallaclous contribution
toward peace--a clamoi' not linn
tied to the lands OF debtor nations
but insistent among many of our
own people-the British commits
sion came to make acknowledg-
ment Of the debt, to put fresh
stamp of approval upon it's valid
ity and agree upon terms for it's
repayment.
Discusses Rates.
1t was manifest from the begin
ming that Great Britain could not
undertake any program OF pay
ment which would conform to the
limitations of time and interest
rates which the commission had
been authorized to grant. But
here was a great nation acknowl.
edging it's obligations and seeking
terms in which 1t might repay.
So your commission proceeded to
negotiate in a business way for u
fair and just settlement. Such a
settlement had to take into con-
sideration the approximately nor
NAL interest rates payable, as the
commission suggests, ''by strong
governments over q long term Of
years." with q temporary interest
rate and suitable options adjusted
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