Evening star., 1925-09-25
PRESIDENT SIGNS
lATNAN DEBT PACT
Seventh Agreement Made.
;: Terms Are Similar to
i British Treaty.

President Coolidge late yesterda!
afternoon signed the debt funding
agreement between the United States
and Latvia, which had been concluded
aarlier in the day by the American
Debt Commission and DR.. Louis Sega
Latvian Minister.
The agreement, which is the seventh
to be completed with the American
Government, must be approved by the
American Congress and the Saeima OF
Latvia
Terms are similar to the precedent
setting settlement with Great Britain
and provide for amortization of the
Latvian debt of S5,779, ,562.76. over 6
period of 62 years, with interest a
8 per cent up to 1882, and at the rate
of 31a per cent thereafter. Accrued
per cent.
Option to Liquidate.
One additional stipulation, how
ever, not included In the British agree
ment, is that Latvia has the optior
to liquidate the amounts due under
the agreement on or before December
Is, 1890, in part by semi-annual cash
payments.
To bring the refunded debt to round
figures Latvia agreed to pay in cash
s4,56276, leaving the total to be turn
ed into bonds at $5,775,000.
DIR. Seya, in connection with the an
nouncement Of the agreement by the
Treasury explained the situation In
his country leading up. to the agree
ment.
"When Latvia proclaimed her inde-
pendence on the 18th of November,
1918" he said, while her territory
was still under the occupation OF the
Bolshevist troops and the German ar
mics, her treasury was entirely empty
and she had nothing but strong ma
tional will and consciousness of her
Just cause; she had to carry on hard
and enthusiastic fighting for the lib
Grafton of the country.
Currency Stabilized.
when in the Spring of 1920 the
I,atvian people succeeded In becom-
ing free of the Bolshevist intruders
and the German occupation corps Of
Won Der Goltz and could first start its
reconstruction work, the country was
entirely ruined and disorganized.
In the years following the liberia
ton of the country, energetic efforts
were made to organize the state and
to create the proper executive depart
mentS in order to meet the various re-
ouirements of the devastated country.
In lS2U, tn6 SOHSllIud1ll ASScUlDiy Was
elected on the basis of universal suf-
frage for citizens of both sexes and
the constitution was elaborated declar-
ing that Latvia shall be an tnde-
pendent democratic republic and that
the sovereign power of the Latvian
state shall be vested in the people.
BY compulsory limitation in state ex-
penditure, by an observation OF the
strictest economy in all departments
and an increased taxation the sta
bility of the Latvian currency was
achieved.
Now the government of Latvia Is
energetically engaged in the great re-
construction work improving the rail-
way traffic and harbors and establish
Ing industries, light and power plants
The main economic assets of Latvia
are her Industrious, thrifty population
and her advantageous geographic
position, as she is the most direct and
convenient trade route between Rus
STA and western Europe.
Now Latvia is in position to meet
her international financial obligations.
She has paid off her debt to France
and Norway and started funding OF
her debt of this country and to Great
Britain. Latvia's national debt Is
about 10 to IL million dollars, e.g.,
( to dollars per CAPITA"