San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-02-07

Joint session in order that ! may sub
nit to you the report of the World War
foreign debt commission, covering its &C.
cepted proposal for the funding of the
debt due to the United States from the
government of Great Britain. This re-
port concluded on February 3, 1923,
reads as follows:
"The World War foreign debt COM
mission created und the act OF Con-
;ress approved February 0, 1922, hay-
ag received the mission appointed by
c British government to consider the
ildins of the demand obligations of
1T government held by the United
ties report as follows: a .
The British government designated
IS its representative the right Hon.
,.anley Baldwin, chancellor of the ex-
.le0uer, and Mr.. Montague Norman, the
.uvernor of the Bank Of England, who
ave conferred with the commission in
Washington and presented facts relating
% the position of the British government
The commission has also met frequently
N separate sessions and has given the
( Hest consider. lion to the problems in
volved in funding of the British debt to
the United States.
Manifest Frori Outset.
1T became manifest from the outset
that it would not be possible to effect
an agreement for funding within the
limits of the act approved February y,
922, and the commission has. therefore
considered the practicability of settle
ment on some other basis, and, though
/ has not been able. in the absence OF
authority under the law to conclude ne
cotiations, it unanimously recommends
Tor submission TO Congress a settlement
with the British government as follows
principal of notes to be refunded
$4O74,S1S,35S.44.
Interest accrued and unpaid up Ia
December 10, 1922. at the rate OF 4 IA
per cent, S629, S36, 106.09.
Deduct payments made October is
1922. and November 15, 1922, with in
terest at 4 IA per cent thereon to De-
cember Is, 1922, 500, 526,3I9.69. To
tai. $4,000, lbs, 0S5.74. -
ITO be paid in cash, $4,12S,0S5.74.
Total principal of Indebtedness as o.
December Is, 1922, for which British
government bonds are to be issued to tht
| United States government at par, 81,
600, 100000.
Pay Principal Annually.
"The principal Of the bonds shall b.
maid in annual instalments on a fixed
schedule, subject to the right of thu
British government to make these pay
ments in three-year periods. The amount
of the first years instalment will b
S23, 100000 and these annual install
ments will increase with due regularit!
during the life of the bonds until, II
the ed year, the amount of the install
ment will be S175,000,000, the aggre
gate instruments being equal to the to
| tai principal of the debt.
The British government shall hav'
the right to pay off additional amount
of the principal of the bonds on an!
interest date upon 30 days previous no
tice.
Interest is TO be payable upon tn
unpaid balances at the following rates
On December 10 and June 10 Of eacl
year; 3 per cent semi-annually, June 10
1923, to December 10, 1923, inclusive
IL per cent semi-annually, June il
1893, until final payment.
"For the first five years, one-hal
the interest may be deferred and adde
to the principal. bonds to be issue
therefor similar 10 those of the origina
issue.
"And payment of interest or Of prir
cipal may be made in any United State
government bonds issued since April
1917, such bonds to be taken at pa
and accrued interest.
Believes Basis Fair.
"The commission believes that a SCI
Element of the British debt to the Uni
ed States on this basis is fair and jus
to both governments and that its promI
adoption will make a most importar
contribution to international stabilit,
The extension of payment both OF II
: principal and interest over long perie
: will make for stability in exchange ar
, promotion of commerce between the tV
countries. The payment of principal h;
E been established on a basis of positi'
e instruments of increasing volume, firm
!. establishing the principle of repaymel
J. Of the entire capital sum.
! "The payment of interest, has be-
5 established at the approximately nc
i NAL rates payable by strong government
: over long terms Of years.
High Interest Not just.
: @It has not been the thought OF I
commission that il would be just to 3
mand over a long period the high ra
of interest naturally maintained duri
the war and reconstruction, and III
such an attempt would defeat our
forts at settlement Beyond this I
commission has felt that the prese
difficulties of unemployment and hi
taxation in the United Kingdom Shot
be met with suitable consideration dl
ing the early years and, therefore,
commission considers it equitable a
desirable that payments during the nj
few years should be made on such
basis and with such flexibility as "
encourage economic recuperation,
only in the countries Immediately CT
cerned, but throughout the world.
This settlement between the Brit
government and the United States
the utmost significance. 1t is a bu
ness settlement fully preserving the
tegrity Of the obligations, and it rep
sents the first great step in the readlu
ment of the intergorernmental obi
tons growing out of the war.
Respectively submitted,
"A. w. MELLON, Chairman
a CHARLES +. HUGHES.
"HERBERT HOOVER.
: FREED SMOOT.