Evening star., 1923-02-13
NEXT DEBT PACTS
TO Be WORSE FOR
us, SAYSSMOOT
Senator Expects No Settle
ment Without Submission
of Terms to Congress.
SHIP BILL SET ASIDE
FOR FUNDING MEASURE
Appropriation and Farm Credits
Legislation Pressed at White
House as March 4 Nears. :

Prediction was made in the Senate
today by Senator Smoot of Utah, a
member Of the American debt funding
commission. that no debt settlements
would be obtained from other debtor
nations as favorable as that accepted
by the British government
Senator Smoot's statement was
made after the administrators ship
ping bill had been laid aside to per-
nit discussion of the British debt
settlement.
with any other foreign country with
out submission of the terms to Con-
gress for approval" said Senator
Smoot.
Senator Walsh, democrat, Montana.
interrupting, cited the authority
given the debt funding commission in
the pending legislation to conclude
settlements with other nations on
terms similar to those contained in
the British settlement without cefer-
ence to Congress.
He then asked Senator Smoot if
his statement could be construed as
meaning that the senator as q mem
ber of the commission looked for no
more favorable settlements to be con-
cluded with the other debtor nations.
Never Favored Cancellation.
Absolutely" replied Senator Smoot.
I'VE can expect none as favorable III
view of the present world conditions"
Senator Smoot denied over the con-
tention of Senator Mckeller, demo-
crat. Tennessee. that he ever had ad-
vocated cancellation of any of the
debts and declared whatever of
movement had been on to cancel
these debts had absolutely no effect
~ a
| terms of the settlement with Great
Britain"
The United States within four years
can borrow money at per cent, Sena-
| tor McCumber predicted, and refund
| present loans below the rate charged
| Great Britain.
| Senator AfcCumher presented let
| ter from Eliot Wadsworth, assistant
! Secretary of the Treasury, and Sec
! retary of American debt commission.
| written in response to an inquiry
| made in the finance committee by
| Senator La Toilette, republican, Wis
| consin, as to the minutes of the meet
| ings between the American and Brit
| ish commissions.
Informal Discussions.
Mr.. Wadsworth said that at the first
| meeting of the two commissions on Janu-
/ airy s 1t was developed conclusively
that the British representatives would
be unable to consider such terms as
had been provided in the debt fund
| ing act. and that therefore it was de-
cided to proceed to informal discus
sions with the agreement that moth
ing said or presented by either side
should be reduced to writing. For
this reason, Mr. Wadsworth added,
no minutes Of the meetings that fol-
lowed were available except the dates
of the sessions and the names OF those
present.
The conferences. Mr.. Wadsworth
explained. resulted in the evolution
of the American proposal setting
forth the minimum terms the COM
misSioners considered acceptable to
Congress but even this. he added. was
not reduced to writing until after
the British commission had returned
home and conferred with the cabinet
chiefs. American Ambassador Har-
vey then informed the Washington
governments the British government
considered the proposal favorably and
the American commission meeting
with British Ambassador Geddes put
the terms to writing and after rati-
| fcation by the British cabinet they
were made public.
The arrangement to lay aside the ad-
| ministration shipping bill for considera-
| ton of the British debt settlement leg
| islation was made after further White
House conferences between President
Harding, Senator Lodge OF Massachu-
SettS, the majority floor leader and Sen
| ator Watson. republican, Indiana II
| was said to be the hope of the admins
| tration forces to pass the debt bill to-
| morrow or by Thursday at the latest.
Meantime, the ship bill will be held in
| its present advantageous position as
| unfinished business.
| Under this arrangement the Brit
ish debt funding bill was taken up in
| the Senate today.
! Unanimous consent to take up the
/ debt measure was given at the re-
quest of Chairman McCumber of the
| finance committee. The leaders said
they hoped to complete debate on 1t
| by tomorrow night
| Senator McCumber declared the Brit
1 ish settlement as mot only important
! in bringing into the Treasury the in
| terest and principal due from Great
Britain, but an inspiration to the
| other debtor nations to come forward
| and thereby in the end secure the Ii
| ouidation of every dollar due u.s." He
said the best policy for this nation
, was to show the utmost leniency TO
! debtor nations and bring settlements
| within their ability to pay" Consider
| ing Great Britain's present obliga-
| tions, the committee chairman said,
the pending agreement met that prin-
| ciple.
Later Senator King, democrat.
| Utah, objected to the plan of the re-
| CONTINUED on Page 2, Column 81
\
4