Imperial Valley press. (El Centro, Calif.) 1907-current, 1923-02-17
WAR DEBTS ISSUE
MAY HAVE TO 81;
REOPENED. BELIEF
Law Makers Do Not Feel /
Question Definitely
Settled
BY DAVID LAWRENCE
Copyright, 1928, by the Imperial
Torp9of

WASHINGTON, Feb. Ia. Some
curious impressions prevail on CAPT
tol hill as to the lenieney or sever
yity Of the terms Of settlement Of the
{ British war debt to the United
= States.
Tie debate brings out tile fact
that some members Of Congress
think the British got off lightly
while others more or less feel an OBJ
legation TO apologize for what they
construe to be o .'hafd bargain
: President Harding regards the
British debt. settlement as a closed
incident and calls attention to the
fact that no favored nation clause
was inserted in the agreement.
Nevertheless members of congress
consider it within the realm of pos
sibility that America will be moral
~ bound to justify q refusal to re-
wise the arrangement. if easier terms
gre negotiated with other powers.
Senator Smoot, member of the Amer
Z 'can funding commission, predicts
publicly that the next debt arrange
ldcrts will not be so good for the
United States as that negotiated
with Great Britain. In the face OF
thas. statement, The question which
has arisen is whether England viii
not be tempted TO revive the nago
tiations of her own initiative and
propose a new agreement The
terms could always be altered by
matual consent.
U. S. May Want Change
Some of the curbstone economists
are saying that Irrespective OF
whether Great Britain asks for a re-
vision, America may find it to her
ewn advantage some day to propose
4 change. 1t is argued that if the
interest rate throughout the world
on government bonds should fall
below 3 per Gent, which is the rate
fixed for ne next 10 years on the
British Indebtedness to America, the
British would be able to issue new
bonds and raise enough in the open
market at say per cent, or even 21@
per cent to make it.Worth while pay
ing off the first 10 installments of
the war debt at once. This might
dump securities back into America
at a time when their coming would
be least desirable and might have
an unsteady effect on America s
trade balances ana the price of the
American dollar in foreign OK
changes.
Senate is Pleased
There is no doubt that the pre-
ponderant feeling in the senate is
in favor of accepting the British
terms hut the first flush of salts
faction oversize excellence of the
terms of settlement for America is
fading and it is beginning IS be
realized that some day another con-
ference between Great Britain aud
the United States may become nee
essary to adjust the interest rates
once more.
Meanwhile the American govern
meht, of course, will endcavor to get
from Italy and France as good terms
as possible but there again the set
tiement will depend upon the capaci-
ty of each country to pay. 1t has
been brought out. for instance, of
ficially, that the war debt of Great
Britain, exclusive, of course, Of the
debts of her dominions, but includ-
ing Ireland and Scotland and Wales, |
is Approximately $4,000, 100000 |
while that Of the United States, |
with three times the population is |
only $23,000,00Q000. Indeed the
debt per person in the United King, |
dom is $S22.24 as against 1926. 35 !
per person in the United States.
I The British debt to America with |
interest to date totals about four
and half billions. Extended over
period Of 62 years the British will |
have paid America more than twice |
the original principal. The debts ow- |
ing to America from other countries
to date as officially revealed ag.
gregate $3,716,514,527 owed by !
France and $1,S50,313,7S2 owed by !
Italy and one billion dollars owed /
by Belgium, -Slovakia, Russia
and other countries. the Belgian |
debt itself being about 1920, 100000. |
The general impression is that t
much better terms viii be secured |
from the French and Italian debt |
than the Indebtedness of Belgium
and other countries so that the ques-
ton raised in congress depends
really ON the capacity of the French /
,and Italians to pay their obligations. !
Until the Ruhr situation clears up (
il is doubtful whether any move viii
be made to negotiate u settlement
with France or Italy.