San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-02-16
Some Members of Congress
Feel That England Got
Off Easily.
OPPOSITE VIEW HELD
Movement Made for
Amendment Preventing
Better Terms to Others.
BY DAVID LAWRENCE.

Copyright. by The san Antonio Light.
Washington, ID. C., Feb. 16.-Some
curious impressions prevail on Capitol
Hill as to the leniency or severity of
the terms of settlement of the British
S-Ss- debt to the United States.
The debate brings out the fact that
some members of Congress think the
British got off lightly while others
more or less feel an obligation to apol
Ogize for what they construe TO be a
hard bargain. The discussion has
been prompted by the desire of some
members to attach an amendment
which would prevent other countries
from getting any better terms.
President Harding has let it be
known that the United States is not
bound later on to give Great Britain
any better terms even If it is found
necessary TO negotiate and accept
much easier arrangement with some
other countries indebted to America.
He regards the British debt settlement
as closed incident and calls attention
to the fact that no favored nation
clause was inserted in the agreement.
Nevertheless members of Congress
consider it y thin the realm of posi-
bility that America will be morally
bound to justify a refusal to revise the
arrangement if easier terms are nego-
tiated with other powers. Senator
Smoot, member of the American fund
ing commission, predicts publicly that
the next debt arrangements will not
be so good for the United States as
that NEGOTIATED with Great Britain.
In the face of that statement the ques-
tion which has arisen is whether Eng
land will not be tempted to revive the
negotiations of her own initiative and
uropose a new, agreement. The terms
could always be altered by mutual con-
sent.
Some Economic Possibilities.
Some Of the curbstone economists
are saying that irrespective of wheth-
er Great Britain asks for a revision
America may find to her own advan-
tage some day to propose a chang. 1t
is argued that il the interest rate
throughout the world on government
bonds should fall below 3 per cent,
which is the rate fixed for the next
ton years on the British Indebtedness
10 America the British would be able
10 issue new-sbondS and raise enough
,,;s-.he open market, sayFat per cent.
or even 21-2 per cent, to make 1t
worth while paying off the first ten
installments of the war debt at once.
This might dump securities back into
America at a time when their coming
would be least desirable and might
have an unsteady effect on Americas
trade balances and the price OF the
American dollar in foreign exchange.
It might develop a situation like the
one which existed Immediately after
the war when the American govern
ment was just as glad to have England
defer payment of her interest as Eng
land was to withhold the same. In
terest is payable in gold and If Eng
land had drained her already meager
god supply TO pay America. the Brit
ish pound sterling would have been
held back and the purchasing power of
British money in this country would
have been held down so far below the
American dollar as TO make purchases
unatrractive and the effects on Ameri-
can commerce would have been adj
verse.
There is no doubt that the prepond-
Grant feeling in the Senate is in favor
of accepting the British terms, but the
first flush of satisfaction over the
excellence of the terms of settlement
4 for AmeIica is fading and it is be-
ginning to be realized that some day
another conference between Great
Britain and the United States may be-
come necessary to adjust the interest
rates once more.
Capacity to Pay.
Meanwhile, the American govern
ment will, of course, endeavor to get
|from Italy and France as good terms
as possible. but there again the settle
ment will depend upon the capacity OF
each country to pay. 1t has been
brought out for instance. officially,
that thewa debt of Great Britain, ex-
elusive. of course, of the debts of her
Idominions, but including ireland and
Scotland ard Wales is approximately
bSsS, 600 100000 while tina: of the