The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-01-12
Early Agreement
on Debt Funding
Issue Predicted
American and British Repre-
sentatives Expected to
Come to Terms Before
January 20.

Washington, Jan. 11.-(By A. P.)-
American and British debt commits
sioners today discussed the whole sub
ject of Great Britain's $4,000 900, 900
debt to the United States, but it was
stated officially that the conversations
had not yet progressed to the point of
consideration of specific terms.
Chairman Mellon and other men,
bers of the American commission were
represented, however, as feeling con-
fident that an agreement would come
out of the negotiations before January
20, the tentative date set for the de-
parture of the British for home.
Much of today's discussions had to
do with the methods of payment and
the general condition of British gov
ornment finances.
The conversations will be resumed
Friday but the official spokesman
for the gathering was unable to say
whether the question of terms would
be reached at that time. 1t was eX-
planned that a. settlement of such mag
consideration and that it was too
early to hazard even a guess as to the
interest rate and ultimate time pay
ment that might be grouped finally.
Liberal Spirit Shown.
The American delegation. it was
made known, is approaching the sub
ject of terms in a most liberal spirit.
aprreciating that in this settlement 1t
is dealing with Americas best Gus
toner aad at the same time will be
establishing a precedent which. 1t is
hoped, will prove guide to all of the
allied nations in squaring the cycle or
war debts. One of the factors known
to be receiving considerable consider
alton is that the money which Great
Britain is to pay was spent in this
country with a profit to American
business and labor and a large income
to the United States government
through taxes.
The chief and controlling factor in
the negotiations, however, will be the
amount of money that Great Britain
will be able to pay annually. In this
connection, attention was called in a
summary Of the British financial con-
ultlOll, lllduS DuDlIC Dg tiio tOhiiiiio-
sions, that in order to balance it's bud
get for this year Great Britain had
to give up it's sinking fund payment
for the ultimate retirement of its. pub
lie debt.
Money Already Paid.
Normally the sinking fund payment
is 35,000,000 pounds sterling annually.
In the budget for this year was in
cluded approximately 100000
pounds which already has been paid
to this country on account of interest
on the debt.
The total British debt was stated
to be 7,70O,O00,000 pounds sterling.
The percentage of the total expendi-
ture this year on account of interest
on that debt was placed at 37S. Ex-
pendtures for this year for the fight
ing forces, army, navy and air SER
vice, was placed at 1861 per cent of
the whole, as compared to "a per cent
for Americas fighting forces. Ad-
ministration of the British govern
ment, including the collection of reve-
nue., was estimated at lis per cent,
or about the same percentage as OBJ
tanning for the United States.
OF the total British revenues, it
was stated that S6.1 came from in
come and supertaxes; lis per cent
from duties on consumption of bever-
ages and liquors. So per cent from
tobacco, 55 per cent from duties on
food, So per cent from death duties
and the same amount from excess
profits and corporation profits duties.