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

contribution toward peace-a clamor
not limited to the lands of debtor ma
tons but insistent among many Of our
own people-the British commission
came to make acknowledgment of the
debt to put fresh stamp of approval
upon its validity and agree upon terms
for its repayment.
Praises the British.
It was manifest from the beginning
that Great Britain could not undertake
any program of payment which would
conform to the limitations of time and
interest rates which the commission had
been authorized to grant. But here
was a great nation acknowledging its
obligations and seeking terms in which
it might repay. SO your commission
proceeded to negotiate in business
way for fair and just settlement. Such
settlement had to take into consider
alton the approximately normal interest
rates payable as the commission sug-
gests, by strong governments over
| long term of years." with a temporary
! interest rate and suitable options adj
| justed to the tremendous problems of
readjustment and recuperation.
| "Your commission went so far as
| il believed the American sense Of fair
play would Justify. Even then the Brit
| ish debt commission did not feel justi-
e 4 by its instructions to accept 'the
proposal Only after submission to the
British cabinet was the proposal of your
commission accepted, and / bring 1t to
you, with the earnest recommendation
that it be given, so far as legislative
procedure will admit, a cordial and
prompt approval.
A transaction of such vast impor-
lance naturally has attracted wide.
spread attention and much OF COM
mendation.' 1t is a very gratifying thing
to note the press and public have ut
tered substantially unanimous APPROX
al. 1t means vastly more than the
mere funding and the ultimate dis
lcharge of the largest international loan
ever contracted. 1t is re-commltment
of the Englsh-speaking world to the
validity of contract; it is in effect a
Might against war and war expendl-
lures and rigid adherence to that pro-
duction and retrenchment which en-
hances stability precisely as it dis
courages obligations.
Failure Meant Disaster.
1t cannot be unseemly to say it, and
il is too important to be omitted, the
failure of the British undertaking
would have spread political and eco
nomic Encouragement throughout tne
world and general reputation would
have likely followed in its wake. But
here is kept faith-willingly kept let it
be recorded-and a covenant of peace
no less effective than it would be IL
Joint British and American opposition
! TO war were expressly agreed upon. 1t
it a covenant of peace and recupera-
ton. of respect and cooperation. Ii
/. is a new element of financial and eco
nomic sterilization, when the world is
, sadly needing a reminder of the ways
of peace. 1t is an example OF encour'
agement and inspiration, when the
world is staggering in disbursement
and bowed with the SORROWS OF wars
, that we're and fears Of wars which hui
mainly is praying may be avoided.
Ordinarily l should be reluctant t.
add this question TO a congressional
, program which is already crowded II
view of the short period remaining OF
YOUR session. But it is Of such out
6 standing Importance to us and to TN
! world that i should be remiss il dit
! NOT invite your sanction even amlt
! crowded calendars and pending prob
lens Of great Importance, and l hop'
you will be glad to approve. If thu
. debtor nation could decide to assum'
: the great obligation, in two cabinet. SEES
), sions, in the face of enormous finan
Z cial and economic difficulties, surel'
the deciding authority Of the credito
nation will be readyeto approve in
: spirit appropriate to the great trans
: action and with a promptness whicl
! will convey befitting appreciation
y Congress Can Repeal 1t.
I am not unmindful of the dispose
. ton to pledge the application OF antci
i mated payments in giving sanction I
4 the settlement. 1t is not necessary I
. remind Congress that the use
's monies secured in the repayment {
20 war loans has been pledged by IN
= yery grant of authority TO make tn
!! loans. The repeal of that commi
II ment is always within the authority
Congress il such a repeal is deeme
u wise, but it will best comport with Il
+ Importance of such an internation
Us transaction to give frank, eXcluslN
and direct decision, uninvolyed by an
bisnosition of the monies which Il