The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-01-17
THREE PER CENT IS
BASIS SUGGESTION
To REF UND PAPER.
Speakers in Congress Willing
to Give More Time for
Payment, But Want
No Cancellation

WASHINGTON, January 1s.-The
American and British DEBT commits
sions were unable today to bring
into accord their views as to the
terms of the settlement of Great
Britain's war debt to the United
States. Further negotiations were
suspended until Thursday with the
British meantime seeking additional
instructions from their government.
The subject of the conversation
today were carefully guarded but
there were indications that the pres
ent difference had to do largely with
the question Of interest rate. 1t was
reported that the British mission had
suggested 8 per cent and that this
had been approved yesterday by the
British cabinet.
Use Per Cent Basis.
1t was learned authoritatively that
at previous sessions there had been
discussions of the statement that 8
per cent was the average rate of gov
eminent loans in normal times and
that the figures examined by the
commissions had appeared to support
this contention. Since this figure is
considerably below the rate OF in
tGTGSL now pau ny the AIltIlCdH 6QN-
eminent on the money borrowed and
advanced to Great Britain, however,
some members at least of the Amer
lean commission were represented as
feeling that they hardly would be
justified in recommending such a
figure to Congress.
While the state of tho negotiations
after today's session was described
officially as practically the same as
that obtaining after the previous
meeting on last Friday, both the
American and British expressed hope
of an agreement in principle before
the end of the present conversations
Stanley Baldwin, British chancellor
of the exchequer and head of the
London mission, still Is anxious to
sail for home Saturday, but 1t was
said that there was a possibility that
the mission would remain over unless
an accord was reached before that
time.
Discussed in Congress.
The refunding negotiations were
the subject of brief discussions today
in Congress. Senator Mcclellan, dem
ocrat, Tennessee, said that considering
Great Britains ability TO make loans
to other nations. to support the
Largest navy in the world" to invest
Hundreds of millions" in oil deyel-
anu OlnSI
she was able to pay the United
States.
Although opposing lower inter-
est rate than the Ia per cent fixed
by Congress in the allied debt re-
funding, the senator told the Senate
that if Great Britain required
longer period for final settlement
than the IS years set down in that
statute, he was agreeable.
Do a., tftyo
North Carolina, commencing the an
nounced determination of the Brit
ish government to pay its debt, de-
elared in the House that the Amer
lean commission should be vested
with the largest powers of adjust
ment, reserving the one condition
that there be no cancellation of any
part OF the debt.c
Il believe we ought to give Great
Britain the longest terms of payment
Sc years. if she wants that much
and the very lowest rate of interest"
said Mr.. Pou. "Then after the bonds
have been made satisfactory to Great
Britain, this government would have
a chance to take care of adjusted
compensation to former service men,"