Evening star., 1923-01-11
Plan for Refunding Four Bill
lions May Be Fixed by
January 20.
LIBERAL POLICY ADOPTED
BY AMERICAN CONFEREEs
Most of Money Loaned to England
Was Spent in This
Country.

Chairman Mellon of the American
Debt Commission was represented to-
day as feeling certain that an agree
ment for the refunding of the British
debt of more than four billions of dol
lars would be reached before the ten
tative sailing date of the British debt
commission on January 20.
The conversations between the debt
commissions thus far and the great
mass of data submitted by the Brit
ish delegation was believed to have
cleared the way for an early discus
sion of terms. 1t was declared to be
practically certain that the plan of
settlement would contemplate an ar
rangement of considerably more liber-
ality than would be possible under the
limitations laid down by Congress.
Money Spent in United States.
While it was emphasized that the
British had as yet made no definite
proposal regarding time of payment
and the interest rate to be charged. it
was made known that the American
commission was inclined to view the
whole situation in a most friendly
spirit by reason not alone of the world
economic situation, but also because
the money advanced to the British gov
ernment during the war was spent al
most entirely in the United States, CIV
ing profits to American workers and
manufacturers and large revenues to
the American government through col
lection of taxes.
There were two principal ways to
pay the debt. 1t was pointed out by
members of the American commission
today in discussing the negotiations.
namely. in gold or by exchange and the
trade balances of the world.
Figures presented bv the British to
the American debt-funding commits
sion indicate that Great Brttain's total
external and internal debt amounts
to about f7,700,00 900, 1t was learned
indirectly today.
This debt, coupled with the serious
unemployment situation in Great
Britain, it was learned, has made
some impression upon the American
commission.
One report today was that the Brit
ish declared they were paying f2,000s-
900 week In doles to the unem-
pIoyed.
AS the British had already pointed
out, it was explained, to pay in gold
would be impossible. The remaining
alternative. to pay through the me-
dium of exchange would involve the
C9OTnIueA ITd06 VI Tile
world" Thus the problem was rem
dered of world wide significance with
practically an obligation upon Amer
lea in these critical days to give
liberal treatment to a good Gus
toner"
Meeting Today.
The two commissions planned to
meet this afternoon at the Treasury
Department
While the general situation in
Europe was understood to be in the
minds of all the commissioners OF
both countries, II was revealed by an
American member of the conference
that the crisis in Europe brought
about by the failure of the premiers'
conference in Paris, the march of the
French into the Ruhr, and the with
drawal of American troops from the
Rhine had not been specifically dis
cussed in connection with the nego-
tiations, The British accepted the
debt at its face value and informal
discussions would continue toward
something definite"
At the recomm endation of Secretary
Mellon and Senator Smoot. republican,
Utah, who also is a member Of the
American commission. the Senate
finance committee today decided to
delay action for the present on the
resolution of Senator Harris, demo-
crat, Georgia, proposing the addition
of three democrats to the commission.