The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-01-28
ENGLISH REQUEST
BETTER TE RMS Or
PAYING WAR DEBT
Final Extinguishment of Loan
in 81 Years With Lower
Interest Rate, Gist
of Proposal
By Associated Press

WASHINGTON, Jan. 27.--Finsl ex-
tfnguishment Of Great Britains dehss
to the United States in 81 years, with
an interest rate of per cent for the
first 10 years and 3ia per cent there
after, is the basis of settlement sug-
gested to the British delegation by
the American debt funding comms-
sion negotiating here. it was dis
closed officially today.
The suggested program carries
with it an amortization rate of one
half of per cent of the principal
annually, together with the retire
ment by Great Britain of such parts
of the debt at such times as it's finan-
cial position permits. An interest
rate of Az per cent would prevail
for the period since the date of the
loans to the time when the funding
arrangement becomes effective, in
stead of the present rate of 5 per
cent.
Interest Smaller
Taken as whole and considered
over the 62-year period, the suggest
ed interest rates approximate slight
~ less than A per cent, while the pro-
visions of the present debt funding
act specify 4A per cent. The aver
age of the rates also, ii was stated
by treasury officials. is virtually the
same as the average of the rates paid
by the treasury on its outstanding
Liberty bonds and other security is
sues These latter rates range from
3L4 to AZ per cent, and when com
puted ON the basis of taxed and tax
exempt securities, 1t was declared
at the treasury this government is
actually paying less than per cent
| on the money it has borrowed.
The view was taken by some Of
ficials that inasmuch as it seemed
apparent that the President, the
American commission and the treas
ury desired to obtain from Great
Britain an interest rate that would
offset the payments of interest by
this government, there was reason to
believe that the treasury had in mind
program of refundng its own obli-
cations.
American Proposal In Hand
This refunding operation, it was
said, logically would embrace the eN-
tension of some of the earliest ma
turing securities over period cor
responding with the final payments
by Great Britain. There was no
statement from any treasury source
on such proposition, no ever. as It
! was said the question could not be
discussed a this time.
No information was available here
toright as to the view taken by the
British delegation of the American
suggestions for a tdnding of the debt
which now totals approximately
s4,70O. 900, 900 Recently high admin
istration officials have said, however
that Chancellor Baldwin of the Brit
ish exchequer and his colleagues had
taken to England full details of the
plan suggested here, and which
the American commission believed
would be acce. table to Congress. 1t
is the hone that an early reply will
, he received from the British gov
eminent, SO that If the program is ac-
ceptable. recommendations for the
necessary changes in the foreign debt
funding act can be sent TO Congress
before the end of the present session.
.TN POLITICIANS HANDS"
SOUTHAMPTON. Jan, 27-stan-
lev baldwin, chancellor the ex-
cheouer, returning on the Olympic
today from his debs mission to Wash
ington, told newspaper me that set
Element of he debt question in the
United Stat : was ''in the hands of
politicians" and that this situation
constituted 1.-The great dir ,rence be-
tween America and this country
Explaining that in America you
may have an ex' cutive which is Will
ing to do n great deal f. you, but
cannot because of difficulties" en-
countered in Congress Mr.. Baldwin
said. go
an the early days the Secretary
| of tho Treasury could undoubtedly
have arranged terms with the Brit
fsb government but the situation
now ~ complicated -eci -se the mat
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