Evening star., 1925-12-27
WILL EXPLAIN WAR
DEBT AGREEMENTS
Proponents Disturbed Over
Opposition in House
to Treaties.

Administration friends of foreign
feht settlements are so disturbed uVer
The unexpected opposition in the
House to ratification of the pacts ar
ranged by The American Debt Com.
mission, that arrangements were com.
rleted yesterday for Under Secretary
nf the Treasury Winston and Repre-
sentative Theodore f.. Burton OF Ohio
10 appear before the ways and means
committee January 1, To explain the
settlements
Winston and Burton are members
OF the American Debt Funding Com
mission and they will he asked spe
ciiicallN how certain conclusions to
fund the debts were reached
Representative Oldfield of Arkansas s
minority whip, said particular atten-
1ion is to be given by the committee
TO the funding of the Italian debt. He
agrees with Representative Garrett OF
tennessee. minority floor leader. that
much opposition to that agreement
prevails in the House
Oppose Italian Pact
Oldheld said experts have figured
that on the basis of the settlement
America would get only $3.50 900 900
for the s. .ni2 0O0. 900 loan TO Italy if
full payments We're made a this time.
Although opposition to the funding
agreement is confined largely 10 the
Italian settlement. Mr.. Oldfeld said
tho House will make a critical
analysis Of all of them.
Despite protests Messrs OldfieId
and Garrett predicted the Italian debt
settlement, as negotiated by the
American commission. eventually will
he ratified. by the House. largely be-
cause of the long delay incident TO
rejection.
The objection Of House Democrats
support generally the position taken
6v Senator James \. Reed of Missouri
that the Italian settlement provides
for an interest rate Of only l $40 per
cent on the principal of s2.042 .0OO. GOO
and that in effect the principal of the
feht itself is cancelled
This explanation of the debt set
tlement differs from the viewpoint of
the Treasury Department. which ex-
plains it in the following words. as
found in the report of the Secretary
OF the Treasury:
The principal of the debt to be
funded was fixed as of June Is. 1925:
interest on the $1.647.S 1863. 1875 prin-
cipal amount of obligations of Italy
held by the United States was calcu.
lated at the rate of AZ per cent a
wear to December Is. 1922 and from
then until June Is. 1925, at the rate
OF ) per cent year, making the prin-
Clpal of the debt TO be funded
$2,o42 900 900
Like British Treaty.
The principal of the debt so de-
termined is to be repaid upon proper
1ionatelN the same schedule of annual
inStallments over period of So years
as provided in the debt-funding agree
mem with Great Britain. eXcept that
during the first five years annual pa V
mentS are to be $1,000. 900 each. the
balance of these payments to be
spread over the remaining wears.
After the first five years interest
Is to he paid at the rate of one-eichth
"f ! per cent for 10 years increa sing
Tor each successive 1O-year period to
one-fourth of l per cent one-half of [
per cent, three-fourthS of | per cent.
J per cent and TO per cent durin.
the last seven years. over the entire
swear period the United States will
receive total of approximately S.
4h'oOO.0O on account of the original
debt of approximately 81 .64S 900 900. =