The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-08-22
T|CISM
LOOKED
FOR
Opposition Both Here and in
Belgium Seen-canceI-
Iation Backed
By GEORGE R. HOLMES


While a Earring note Of dissatis-
faction over the Belgian debt
terms has been sounded by Sem
ator William E. Borah, and there
are rumblings of discord in other
quarters, Administration officials
remained confident today that
when the matter comes to show
down early in the new Congress
ratification of the agreement will
be accomplished overwhelmingly.
Officials here are more worried
over the attitude of the Belgian
parliament than they are over the
American Congress.
They Upset Negotiations
Whipped up by press that has
consistently and vociferously adj
yocated cancellation Of war debts,
public opinion in Belgium may yet
upset the work that was accom-
splished in Washington this week
by tedious negotiation.
There win be lot Of criticism
OF the Belgian settlement prior to
its ratification by Congress.
That much is assured from the
outspoken criticism of Senator
Borah and the powerful little group
for which he Is the chief spokes-
man.
II, however, the generous terms
accorded Belgium do not, in fact,
constitute a precedent for the set
Elements with France and Italy,
to be made next month. it is prob.
able that the opposition will fade
away after some oratorical out
bursts.
If, on the other hand, France
and Italy obtain similar concessions
from the American Debt Funding
Commission, it is not only possible
but probable there Will be such an
outburst Of opposition as 4 to en-
danger the whole work of the
Debt Commission.
Huge Loss to America
Cancellation OF the interest pay
ments on Be.gium's war debt cost
the American Government approx
mately $50, 600 900 at the outset.
This is not a paper loss, as the
Government has paid Az per cent
interest to Liberty bond holders for
the money that was loaned to Bel
GUM, and upon which Belgium paid
no interest whatever.
Over a span of sixty-two years,
the life of the agreement, the sum
reaches staggering proportions.
IF the Belgian settlement is to
serve as a precedent it cannot be
defended" said Senator Borah in a
telegram to Senator Smoot RepD
of Utah. the .Senate's representative
on the debt commission. I'VE are
entitled to collect these debts on
reasonable terms.
81 am not in favor Of cancelIa-
ton either openly or covertly. We
can be liberal as to time of pay
ment, but Congress has no right to
cancel billions of obligations due to
taxpayers of this country"
France and Italy together owe
the United States approximately
$500, O00.O 900.
Attains Fantastic Figures.
Even should this debt be funded
on the terms accorded Great Brit
ain, with interest at 81 per cent.
it will cost the American Govern
ment approximately $65 900, 900 a
year, as the Government is paying
Liberty bond holders Az per cent
on the same money. Over sixty-two
years, or ninety years as France
has suggested, the net loss to thu
Government runs to fantastic fig
uFes.
This feature will be heavily
stressed by Borah and others VIII ,
are inclined to be critical of Amer
lean generosity in the debate that
is to precede ratification.
The reply of the agreements de
tenders, stripped of parliamentary
verbiage, win be:
Its all true, but half a loaf
Is better than no loaf at all, so
make the best of it."
RidicuIes French Plea
Press reports from Paris that
France is planning to demand that
the Debt Funding Commission Cor
give the interest on Frances debt,
from the time when it was incurred
to date, amounting to more than
5000 900 600, little short of billion
dollars, struck the American debt
negotiators unpleasantly today.
1t was said that no conditions
could be enyironed that would lead
to the granting of any such germs
Ridiculous" said one member
6 the Debt Commission.