The Washington times., 1923-01-27
PLAN CUTS
INTEREST
RATES
Provides Charge of 8 Per Cent
for Ten Years and 8 1-2
Per Cent Thereafter.
BY DAVID Nj. CHURCH,
International News Service.


LONDON, Jan. 27.-StaAley Bald
win, chancellor of the exchequer
and head of the British Debt Fund
Ing Mission, who arrived from
Washington today to report to the
already obtained the best terms
that the United States will give and
that he will not return to America
for any further negotiations.
Chancellor Baldwin revealed that
the American terms call for a per
cent interest rate during the. first
ten years; 342 per cent after the
first ten-year period and a sinking
fund rate of one half of 1 per cent.
The per cent being paid at pres
ent runs until final agreement is
reached
The chancellor expressed keen re-
gret that the negotiations on the
American side "had fallen into the
hands of politicians"
Up to Britieh Cabinet.
There is no hope of getting
America to offer better terms"
said Baldwin. "The problem now
IL whether the British cabinet will
accept the terms offered Any
change of opinion in the United
States would be against England,
not in our favor. Cancellation has
got upon the nerves of the Ameri-
can people. / am not going back
to the United States on war debt
business
Other members Of the British
party agreed with Baldwin THAT
debt cancellation was a very un.
popular subject in the United States
at this time.
The chancellor of the exchequer
elaborated upon his views, saying:
THE American people as q whole
think they are doing an extra
ordinary generous thing in offering
the terms they did to the British.
/ am afraid, however, that the
British do not think SO.
"It is matter Of opinion
whether it will be possible to fund
the debt for many years to come
In the meantime we are 20 go on
paying 5 per cent interest On the
principal sum, if there is no settle
ment. We are bound by agreement
TO do so. There is no chance OF
getting America to offer better
terms.
Sees Politicians in Control.
I'VE must look at the advantages
and disadvantages Of refusing those
terms, There is a certain amount
of back interest owing that will
have to be added to the total sum-
THE great difference between the
United States and this country is
that the whole settlement of debts
in America is in the hands Of
politicians.
when the debt was contracted
1t was not in the hands of politicians
but in the hands of trained
financiers The Secretary of the
Treasury undoubtedly could have
arranged terms with Great Britain
had Britain then thought it fit to
do so. The situation has been i'm
mensely complicated by the matter
getting into the hands of the
American Congress. Once in the
hands of Congress, it can never get
out: they will not let go of it,
Chancellor Baldwin said that
speed is necessary. He continued:
1--WE have been offered what the
Americans contend are the best
possible terms. The British cabinet
must accept or reject them within
a week. If we are unable to settle
the thing quickly we will have to
continue paying so 900. 900 pounds
anu tic % pei N%iib AIiICiC5I
rate and let me tell you Britain
cannot do it. She cannot stand
the financial strain in her present
condition.
1t is impossible to fund the debt
In Britain. 1t is up to us to decide
quickly. If we do not get action
In this Congress it is doubtful if
we get any better terms from the
next Congress"
The English do not understand
that this question is on the nerves
of Americans. New York city
opinion cuts no ice: it means moth
ing. We must consider the view.
point of the American people; not
that of a single city People who
live in the United States at a dis
lance from the seaboard fail to un-
derstand how international debts
are bound up with trade and com.
merce. Ours is maritime coun.
try. We understand that.
Sees Rise i'm Sterling.
Americans demand their money
They say we have been given the
best possible terms. All I can saw
for myself is that 1 hope there is
an early settlement, and one that is
mutually satisfactory
Mr.. Baldwin predicted that the