The Monmouth inquirer., 1925-08-27
DELCIANS SIGN
FUNDING TERMS
Payments win Be Spread Over
Period of 62 Years-MoraF
Factor Admitted.
POST WAR DEBT MADE EASY
Total Amount to Be Paid Under
Agreement is $727, 8 o,5oo-5oth
Parties Are Well Pleased
over the Outcome.

Washington.-Complete agreement
on the method of funding the debt
Belgium owes to the United States
was reached at a meeting of represent
tatiyes Of that country and Of the
World Val Foreign Debt Commission
at the Treasury.
Under the agreement, which was
signed at the Belgian Embassy, Bel
GUM is to pay a post-armistice debt
of $3.50, 050, 500 and a pre-armistice
debt Of $1~71,780,O00 simultaneously
over a period Of sixty-two years. With
interest on the pre-war debt added,
the total to be paid is $727,8 $50, 800.
In recognition Of the special claim
OF Belgium In German reparation pay
ments, and her insistence that the
Sill, 100000 must be regarded in a
different light from her other obliga-
lions, the World War Foreign Debt
Commission consented that no inter-
est whatever should be charged on
this mount.
Because this country did not sign
the Versailles Treaty, the American
commission could not feel bound to
the arrangement Of President Wilson
that the German Government should
be substituted as the debtor, o did
it feel that the s per cent proportion
of German debts to Belgium allocated
under the Dawes plan should be APP
piled. But the American commission
did take the attitude that while there
was no legal obligation there was a
strong moral one which necessitated
the concession Of abandoning the In
terest charge.
The post-armistice debt was. treated
In general on the same basis with
other settlements. but because of the
present situation in Belgium, the fact
that trade balances are against her
and her exchange position Is poor, 1t
was provided that she would make
arbitrary payments over a period OF
ten years on the interest and that the
3h per cent interest charge would
not apply until that time. From Ia
bles furnished by the Treasury II, may
be seen that while the total payments
Of Belgium on the post-armistice debt
range between 1884 900 and $6,650,-
900 for the first ten years, they then
jump to a constant of about $4,000. 900
annually for the rest Of the sixty-two
years.
The post-armistice debt of $3.50, 050,-
500 Is split into interest charges Of
$310,05O, 500 and a principal of $780,
900, 1000 the principal being approx
mately $40. 600. 900 greater than what
was anticipated on the basis Of debt
figures submitted by the Teasury May
16, 1925. Accrued interest charged at
the rate of AZ per cen from the date
of the armistice to December, 1922,
and at the rate Of 3 per CEN from that
time until June Of 1925, the date Of
the present agreement, makes up the
difference, it was stated at the Treas
ury.
Although members of both sections
referred all inquiries to the Treasury,
which subsequently made the an
n-ouncement, 1t was manifest hat
Baron de Cartier and other Relgians
we're pleased with the outcome. The
ambassador made a speech thanking
the American commission and ex-
pressing satisfaction, and also asked
all the members of the joint meeting
to a dinner In the evening at the EN-
bassy, where the agreement was to be
signed.
The first payment is expected from
Belgium December is.
The chief consideration 10Y is how
the arrangement viii strike the Bel
gian Parliament when 1t is placed be-
fore that body, but 1t is believed in
Washington that while the Belgian
commissioners may expect some OPP
position at Brussels, the agreement
will be ratified. Members Of the
American commission did not appear
to think there would be any trouble
in ratification by Congress next win
ter.