The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1923-02-09
BRITISH DfBTPACT
URGEDBY HARDING
Congressional Approval Is
Requested By Executive
ALSO SHIPPING BILL
President Appeared Before Joint
Session Congress Today In
Behalf Action.
Associated Press Dispatch. ]

Congressional approval OF the war
debt funding agreement negotiated
with Great Britain was requested by
President Harding today as a re
commitment of the English speak
ing world 10 tn, validity of con-
tract"
Coupled with this approval, the
president added in an address at a
joint session of the senate and
house, congress should enact into
law the administration ship bill be
cause ut is as important to avoid
losses as it is to secure funds on
debts"
Ample time for action on both OF
these measures, 1t was declraed by
Mr.. Harding, remains before the
present congress goes out of exis-
tence on March 4, and either. he
said, was fit to be recorded as a
chapter Of great achievement.
No Recommendation As to Action
The president made no specific
recommendation as to form the &C.
ton of congress- on the British debt
ers in congress to decide what
method should be adopted to amend
the present law so as to permit
contamination of the agreement re-
Gently reached by the American
and British debt commissions.
"It was manifest from the begin :
ming" he said, that Great Britain
could undertake any program OF
payment 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 acknowledging
its obligations and seeking terms
In which 1t might repay.
so your commission proceeded to
negotiate in a business way for a
fair and just settlement. Your com .
mission went so far as 1t believed
the American sense of fair play
would justify.
Means More Than Funding
cit means vastly more than the
mere funding and the ultimate dis {,
charge OF the largest international
loan ever contracted. 1t is a recon-
mitment OF the English speaking
world to tie validity Of contract. 1t
is in effect a plight against war and
u ar expenditures and : a rigid ad =
Iherence to that reduction and re-
trenchment which enhances stability
precisely as it discharges obliga-
| tons"
Abiding indirectly TO proposals
to attach to the congressional act OF
approval soldiers bonus bill, the
president reminded congress- tina,
| tho wartime authorization Ior the
loans contained in itself a stipula
| lion that when the money was paid
back II should be applied to the re-
| tirement of Liberty Bonds and otner
government issues.
Read Report Commission
AS a part OF his statement on tne
debt negotiations the executive read
a report from the American com =
mission, headed by Secretary Mel
| Ion, describing the settlement as
"fair and Just to both governments"
and predicting that 1t would make
la most important contribution TO
! international stability"
Mr.. Hardings appeal for action
on the ship bill was prompted ne
said, by suggestions that Its oppo,,,
nents were seeking to prevent a<roli
call on it before the end OF the ses-
sion,
Impotence on a vitality important
public question. plead for a deci-
sion. II there is favorable ma :.
FORTY. the bill should be enacted. II
a majority is opposed, defeat will
he decisive. Then, If congress faili
in providing the requested a!terna-
| tive measures, the executive brancn
Of the government may proceed as
hest it can to end the losses In IL
uuidation and humiliation"
Text Of Message
Portions of President Harding s
address follow: The commission
recomm ends for submission to con-
gress settlement with the British
government as follows:
Principals of notes to be REFUNDED
$4,o74,81 S, 35S.44.
interest accrued and unpaid UP
to December 1912, at the ra az Oh
Deduct payments made october
lis. 1922 and November 10, 1922,
with interest at Ia per cent there
on to December Is, 1922, $10O, 526, :
j 1888. Total $4,604, 1928 ,0S5.74.
To be paid in cash SALES, 085.74.
Total principal Of indebtedness as
of December Is, 1922, for British
government bonds are to be issued
to the United States government at
par $4,000, 0O0, 900.
Principal paid Annually
| The principal of the bonds shall
tbe paid in annual installments on a
fixed schedule, subject to the right
of the British government to make
these payments. in three year per-
iods. The amount of the first years
| installment will be $23 100000 and
these annual installments will in
crease with due regularity during
the life of the bonds until, in the
sixty two year, the amount OF the
installment viii be $175,000, 900, the
aggregate installrhents being equal
to the total principal Of the debt.
The British government shall
have the right to pay off addition
al amounts Of the principal of the
bonds on any interest date upon
ninety days previous notice.
Regarding The Interest
Interest is to be payable upon the
unpaid balances at the following
rates: On December Is and June
10. of each year: 8 per cent semi
annually, June Is, 1928, to Decem-
Der Is, 1923, inclusive; 3 IL per
cent semi annually, June 10, 1888,
until final payment.
May Defer Interest
For the first five years one half
the interest may be deferred and
added to the principal, bonds to be
issued therefore, similar to those of
the original issue.
Any payment OF interest or OF
principal may be made in any Unit.
ed States government bonds issued
since April s, 1917, such bonds to
be taken at par and accrued In
intssritv AZ Agreement.