The Washington times., 1923-01-16
INTEREST RATE.
B|GFACTOR
IN.DEBT
British Press for 8 Per Cent
and 66-Year Term for
Payment.
BY w. w. ATKINS.
International News Service.

The question Of rates Of interest.
rather than length of maturities on
obligations into which the British
Sc ,O00, O0O, 900 debt due this country
is to be funded, was the chief point
lfof difference between the British
and American debt-funding conmis.
sion today, as they resumed Mego-
tiations after a three-day recess.
Members of the American commits
sion were hopeful, but not conf
dent, that this difference cah he
bridged.
The British commission, with new
instructions from the British cabi-
net, talked specific terms after
preliminary rehearsals of British
financial uncertainties. The Ameri-
can commission does not question
the sincerity OF the British commits.
sion's expressed purpose to pay the
big debt, but degree of surprise
met British suggestions that the
British government would like to
see a. lower rate of interest fixed
than it will be possible for the Adj
ministration to legalize by future
modification of the funding law.
Interest Rate at Issue.
The American commission, It Is
learned, does not consider recon-
mending to Congress that the law
be amended allowing the commits.
sion to provide a flexible interest
rate scale to meet future contin-
gencies. Members OF the American
commission would not discuss the
British proposal that an interest
rate OF per cent be fixed, as the
DEVELOPMENTS of the next Few days
may reveal a compromise under
standing on this question. what
ever is done about 1t, members OF
the commission declared that. in
the last analysis. the negotiations
/ of the two commissions cannot re-
suit in concluded agreement"
The aim of the two commissions IL
to reach an agreeable basis" for
future definite settlement Of the
debt.
1t became known today the Brit
ish spokesmen have made many
formal suggestions which were re-
Iected by the American commits
sion. It is assumed that these
were turned down because they
clearly fell outside the bounds or
the funding act restrictions.
what we are negotiating for -
actual payments on the British
debt. not the interest payments
alone" said a member Of the COM
mission. He asserted other ques-
tons are matters of detail for dis
cussion and possible agreement.
Hope. Understanding Near.
The American commission today
was hopeful that the discussions
are near the point Of definite un-
derstanding, but none would pre-
dict that agreement" is sure. ex-
cept in tentative form, possibly
subject to later approval by Con-
gress, as well as by the British gov
eminent.
1t now appears that while the
British commission came to Wash
ington with plenary powers to take
final action, new features were
brought forth by the debt parley
that led to new instructions from
Downing street. 1t was by no
means certain that the American
commission could reconcile them
selves to the new authority given
the British ENJOYS.
An outstanding development OF
the negotiations thus far Is the
British assurance Of Britain's abil-
ity to begin curtailing the principal
of the debt after five years, mean
while meeting interest payments at
the rate OF $200, 900, 900 a year. The
American commission Is said not to
be averse to fixing the maturity
limit at sixty.six years II agreement
on the interest rate can be reached.