Evening star., 1923-01-05

to business, to international trade.
and to domestic tranquility, Great
Britain, he said. had taxed, in order
to pay. and would pay.
Sees Peril fn Farley Rupture.
In the breakdown of the conference
Of premiers at Paris. yesterday, Mr.
Baldwin believes, grave dangers Turk.
With continued pressure on Germany,
one of the greatest dangers, he be-
iieyes to be the possibility of inter
nal disorders within Germany her
self. Should France proceed TO occu-
patton of the Ruhr and continue
pressure for the collection OF rspa-
rations under the present rumored
plans, Mr.. Baldwin said, he would
venture to be afraid of such disor-
ders breaking out in Germany, which
might amount eventually to q reyo-
luton.
In France, he thought. where a
great part OF the people were rural,
and to some extent conservative,
there might be some danger OF dis
orders, but under the present situa-
that of a break in the value OF the
franc, and depreciation of the cur
rency. II this should occur. he said,
there would be imminent q threat,
not alone TO France, but to Europe.
ito you and 20 me-; for a break In
decline in the value OF the mark, Mr.
Baldwin thought, would have an Ell
feet on international trade, not only
serious, but threatening.
Insists Britain VIII Pay.
While the head of the British
commission freely discussed tne
breakdown OF the Paris conference
and the possibilities in Europe over
the reparations problem, he gave no
hInf fhaea would
have any effect upon the intent or
Great Britain to pay her debt OF more
than four billions Of dollars to the
United States.
limitations from overseas through
the Baifour note, and through IN
official pronouncements that Great
Britain would welcome overtures by
this government looking toward q
general all-round cancellation or war
debts have never met with favor in
American officials have plainly re-
iterated that this government could
take no part In any consideration OF
cancellation of war debts.
On the other hand, il has been re-
vealed in official quarters here that
there has never come officially from
Great Britain to this country direct
any proposal for cancellation of the
British debt. In fact, 100000, 900 was
paid in gold. late last year. by Great
Britain, as interest on the debt for the
1928.
Expect Solution shortly.
Now the British commission has
come. with promises of getting down
TO business Immediately, with hope
to complete the negotiations, and
come TO a conclusion satisfactory TO
all within two weeks. There is no
talk of cancellation. There is much
talk of payment.
Senator Smoot, republican. or Utah.
a member Of the American debt COM
mission. called this morning at the
White House but President Harding,
being unable TO further crowd MS
calendar, the senator made an ap-
pointment for tomorrow, presumably
to discuss the debt situation.
While at the White House Senator
Smoot was notified that Ambassador
Harvey, a guest at the White House,
would see the senator. and the two
were in conference for a considerable
period.
Ambassador Harvey, fresh from
London, was believed to have gone
over the entire problem of British
American debts with the senator.
Bears Per Cent Interest.
The British debt includes $611.o44.-
20l.S5 interest, accrued and unpaid, up
to May Is. The recently paid $780,
May Is.
At present the British obligations
bear s. per cent interest. Under the
provisions of the act creating the
American Debt Commission that COM
mission is authorized to negotiate
with foreign governments with view
to reduction of the interest rate to a
minimum of 4 \ per cent.
Difference OF Opinion.
AS to the advisabilIty of seeking
any changes in the debt funding act
to give the American commission
more latitude IN the negotiations a
difference OF opinion appears to pre-
vail between Treasury officials and
some members of the commission.
The former stated yesterday that no
thought was being given to changes
in the act. while some members of the
commission, including Secretary
Hughes and Representative Burton,
republican, Ohio, have taken the view
that certain changes should be made.
Members of the commission declined
to discuss the matter further, how
ever, in advance OF the British pres
entation.
Reports persisted that the first step
by the foreign delegation would be
to attempt to establish to the salts
faction Of the American commission
and as a basis for later calculations
the approximate annual amount that
Great Britain can pay. The British
delegates were said to fele tina the es-
tablishment of such a basis as 4 start
ing point was essential to the success
of negotiations.
The British delegation was delayed
In arriving yesterday, their train be-
ing forced to stop a few miles outside
Of Washington because of trouble
with the locomotive. The delegation
was met by Undersecretary Gilbert
of the Treasury and Sir. Auckland
Geddes. the British ambassador, and
went to the Shoreham Hotel, where 1T
will be Quartered. Later, the. mem
bers of the delegation were dinner
guests of the ambassador at the EN-
bassy.