The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-08-21
Y
BASIS OF
PLANS !
Payments by Great Britain
and Other Nations Also
Will Help Reduction
BY GEORGE R. HOLMES
BY international News Service


BY international News Service
Discharge of the enormous pub
lie debt of the United States.
which now totals approximately
$21, 000,000,000 and is mostly at
tributable to the war, within the
next twenty-five years, is emerg-
ing from the dream stage and
assuming the proportions of
reality.
Encouraged by the success that
thus far has attended the foreign
debt negotiations, and optimistic
that this foreign funding will be
nearly completed by the time
Congress convenes in December,
Treasury officials were convinced
today that, barring unforeseen COZ
tingencies, the Government can be
virtually debt-free by 1850.
Secretary Melons Plans
To achieve this goal, which he's
been and still is one of the chief
detectives of Secretary OF the
Treasury Mellon. it will be neces-
sary:
i. To successfully conclude fund
ing agreements with France and
Italy, the two principal debtors
left, on terms approximating the
settlements made with Great Britain,
Poland, Belgium and the others.
g To continue the policy OF rigid
administrative economy inaug1rated
and pushed by the last two admins
trations, and
3. To keep check-rein on Con-
gress.
Granted these favorable condi-
tons, Treasury officials said the
United Staes could pay for the war
virtually within a quarter-century
financing unparalleled in the world
history.
Assured Of Payments
It will be necessary. too. of
course. for this program to be
nursed along by careful re-financ-
ing from year to year.
On the debt settlements negotiated
to date, the United States is as
sured of payments of nearly
sig 500. 600 900 over the next sixty
two years. the span OF the agree
ments with Great Britain. Belgium,
Poland, Finland, Hungary and
Lithuania.
1t is expected that the agree
ments to be negotiated with France
and Italy within the next three
months will entail as much more.
providing the terms are approx
France owes s4.21O DOC, 900, Italy
owes $2,140, 000, 900.
- The interest payments over
sixty.two-year Span will increase
Frances total payment to around
IS 900 600 900. and Italy's to around
$4,000 900 900.
The gradual liquidation of this
enormous outstanding public debt
will decrease the annual cost of
government by nearly one-third.
Interest payments on the public
debt now run nearly $1,000 900 900
a year, and the total appropriations
of Congress last session were only
slightly more than $4,000. 000, 900.
Report for Congress
These phases of the Government
financing will be treated extensively
I'm Secretary MELONS annual report
this year. and viii be passed along
TO Congress by President Coolidge
union, with an admonition to keep
them in mind when it comes TO ap-
propriating money.
Great satisfaction was expressed
by ADMINISTRATION officials today
over the announcement in Paris
that NJ. Caillaux. the French fl
nance minister. has finally decided
TO come in person to negotiate a
settlement of Frances debt next
month.
NJ. Caillaux's decision is believed
here to have been caused, in no
small part. TO discreet hints dropped
in Paris that the United States de-
sired his presence.
More than all else. this Govern
n1ent desires French mission that
50 authorized to conclude an agree
ment, and 1t was considered I'M
likely that NJ. Caillaux would dele.
gate such power to any one else.
The United States has made it
clear to France that it has had
enough of unofficial and lin
formal" negotiations
What is desired now is something
official. formal and binding.
As exclusively stated in Inter
nstICnal News Service dispatches or
Wednesday the Treasury does moi
consider the generous terms &c
corded Belgium to. constitute Z
precedent for the French am
Italian debts. Instead of the Bel
gian terms being the worst
France can get. as anticipated By
the Partisan press, the French are
quite likely to find they will no
be accorded terms anywhere neai
SO liberal for Woodrow Wilson
mGde no pledges concerning tn,
French debt as he did with REGARD
10 the Belgian.
The debt funding commission vii
continue. as in the past. To- adheI'
20 us fixed policy of treating eaci
case on its merits irrespective .
SsiSf agreements have been reached
Dssh earlier settlers.
CO-OpEPATION Is KEY