The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-01-10
Of
DEbTPROBLE:N
NOT POSSIBLE.
Harding Feels American
Terms Too Hard to Be
Met by the Allied Powers.
May Ask Congress to
LiberaIize Matters

WASHINGTON, Jan. 9.-Presi-
dent Harding is convinced, it was
disclosed today at the White House,
that there can be no settlement of
| the II billions of dollars of war
debts to the United States within
the limitations laid down by Con-
gress-payment of principal within
rs years with interest at four and
one-quarter per cent.
! The Executives views, in which
members of the American debt
commission concur, were crystal
lized by developments at the pre-
liminary negotiations with the
British debt commission looking to
the refunding of the four billions
OF dollars owed by Great Britain.
The progress of these negotiations
was laid before the President yes
terday by Secretary Mellon and
Senator Smoot, republican, Utah,
members of the American COM
mission.
Mny Ask Liberal Terms
| Whether Congress will be asked to
/ liberalize Immediately the terms of
the existing statute or the American
! commission proceed to make the best
arrangements possible with the
debtor nations subject to final con-
gressional app oval is yet to be de-
termined. 1t was indicated. however
that the latter course was regarded
i as preferable, certainly so far as the
/ British debt is concerned, because
! the British commi ssion is on the
ground ready to reach settlement
and advance action by Congress
might result in long delay IN the
negotiations between that commits
sion and the American body which
ares 10 be resumed tomorrow.
Mr. Herding considers that III,
British and American delegations
may reach an agreement within {
week, and he feels that when the
American commission has decided
what notifications are absolutely
necessary there will be test OF
what the country desires to do ano
what its representatives in Congress:
iwlll permit to be done.
| VIII Set Precedent
The President also was represented
as feeling that If out of the preseni
negotiations there came plan which
would be approved by Congress, ever
at the cost of relieving some of the
burdens on the debtor nations, g
precedent would have been set which
would serve as guide in the settle
ments along all the governments as
the World war.
a rdi o. Y
were being made known at the White
House the debt situation was dis
cussed in the Senate and House witt
| increasing indications that efforts
would be made to amend the debt re-
funding law in many important par
ticulars. In the Senate discussion
centered around the proposal of Sen
lator Harrison, democrat, Mississippi
that the commission be enlarged sc
as TO include democratic representa-
ton. but in the House the direct is.
sue was the liberalizing of the term.
of the settlement by the debtor ma
! lions.
AS these discussions went forward
members of the American commits
| sion held group conferences for fur
tier discussion of the general state
mcnt presented yesterday on behal
of the British mission During thu
| Cay Montague c. Norman. governo
of the Bank of England, and a mem
Ter of the British delegation, con
ferred with Assistant Secretar.
| Wadsworth. secretary of the Ameri
can commission Neither would dis
cuss the subject of their converse
ton nor was any statement forth
coming from either of the commits
sions.
/ Harvey Consulted
| Amba ssador Harvey. who returne'
recently from London, has been /
conference with members of tn
American commission and the i'm
preston was gained today at tn
White House that one of the rea son
! for his temporary recall from London
was a desire of officials to consul
House debate was precipitated b
Representative Garner, den ocrat, o
Texas, who read a press report o
an address delivered in New Yorl
by Representative Fess. republican
/ Ohio, to the effect that some free
dom must and would be given b.
| Congress to the Amer. can debt com
1 MISSION. Mr.. Garner contended tina
the only deduction was thar Con
gress would be called to yield It
control over $1,000, 100000 of tn
! peoples money.
Nothing but cowardly Congress
! yes almost criminal Congress
would surrender the trust place.
in their hands to the extent of Sill
600, 100000 without having gone be
fore the electorate and received au
| thority to that effect" declared MI
| Garner.
Representative Fess denied tina
he had advocated surrendering tn
powers of Congress to the debt com
! mission. but declares the commissio
/ should have some latitude to max
i the best terms possible.