Evening star., 1925-08-19
Effect of U. S. Generosity on
Other Debtor Nations
Watched With Confidence
by Officials Here.
NO INTEREST CHARGED
ON LOANS DURING WAR
Post-Armistice Advances Will Car
ry 8 1-2 Per Cent Rate Until
Whole Sum Is Paid in So Years.
Wilson Agreement Given Moral
Weight"

Belgium. by funding her debt to
the United States, becomes the sixth
OF 20 powers owing this Government
to arrange for amortization of their
Indebtedness, and now clears the
way for further negotiations expect
ed with many others, including
first France and Italy. More than
billion of the y billion dollars
owed America have thus been
funded.
The agreement, which was ap-
proved by President Coolidge, must
be ratified by both the American
Congress and the Belgian political
authorities before finally becoming
effective as OF June Is, 1925.
Senate Opposition Seen.
There were indications that the
terms would in all probability be ap-
proved by the House of Representa-
tiveS, but that some question may be
raised against them in the Senate.
No funding agreement negotiated by
the American Debt Commission, how
ever. has yet been rejected by Con
gress, which already has approved
and Hungary. Two others negotiated,
with Lithuania and Poland, also
await, with that of Belgium, for ap-
provaI by Congress.
General qualification existed today
on the part of both American and
Belgian delegates over the agreement
reached late yesterday at the Treas
ury between the two commissions.
The agreement provides for no in
terest on the pre-armistice loans, and
60 years in which to pay this princi-
pal and the post-armistice loans with
interest up to 312 per cent-a grand
total of 1927, $3.50, 500.
Official Washington had it's ears to
the cables today, with much antici-
patton. awaiting word of what kind
of reception is to be accorded the
Belgian agreement in Eu-
rope, particularly in Paris and in
Rome.
No Apprehension Felt.
On the part of Government off
cials there appeared no apprehen-
sion. but there was a definite feel
ing in some quarters here today that
the generosity of the terms, which
provide no interest whatever on more
than S171, 100000, the pre-armistice
loan, may prove to be more harmful
than helpful when the time comes for
dealing with the French and Italian
debt to the United States.
Belgium, however, was accorded
special consideration, it was explained,
in view of the fact that this Govern
ment felt mo legal obligation" but
"a weighty moral obligation" from as
surances given by President Wilson
in Paris. Under the treaty of Yer
sailles, never ratified by the United
States, it was provided that the pre-
armistice advances to Belgium oc-
cupied different position from finan-
cial obligations between any other
countries in the war. Other creditors
of Belgium, including England and
France, agreed to the arrangement
whereby the German government
would be substituted for Belgium as
the debtor for the pre-armistice debts.
This point the American Government
has never conceded.
Early indications from Paris were
to the effect that Fiance Minister Gail
lauX was suspending instructions to
the French Debt Commission TO
America, and would look into the
terms granted by this Government to
Belgium before finally determining
the position to be taken by the French
commission. 1t now seems likely that
the French may be here early in Oc-
tober.
Italy Promises Action.
From Rome, Minister OF Foreign
Affairs Alberti, who has been charged
with the new duty of clearing up the
question of interaIlied debt has cabled
assurance to Washington that the
question is being given serious con-
sideration. No probable date has been
fixed for Italy's conference here.
The Belgian-American agreement in
brief splits the two parts OF the debt,
pre-armistice and post-armistice, with
sharp differentiation in their treat
ment The second part is handled
very similarly TO the other five fund
ing agreements completed with Great
Britain, Finland. Hungary, Lithuania
and Poland. No interest, either ac-
crued or future, is charged against
the pre-armistice loan of $l71 500 ,000.
The pre-armistice loan is to be paid
off, without interest, in annual in
stallments, due June 10, the first six
years carrying smaller amounts, as
follow: 81 900, 900, $1,000, 900, S1,250,-
900. Thereafter, beginning with 1882,
the annual installment of principal
will be 81 800 900. until 1887, when the
final installment will be s. ,2S0 900,
making a total for the pre-armistice
loan of $171, TS0, 900.
Post-Armistice Terms.
The post-armistice debt of $246,-
600, 900 principal is to be paid off in
the same 62 years, beginning June 10.
1925, with arrangements made for
lighter rate of interest fixed arbitra-
rily for the first 10 years, but rising
to 31a per cent in the eleventh year.
The interest for the first 10 years
will thus be paid in fiat sums ranging
from 1,740.00 for the first year. up
to $3.50 900 in the tenth year. This
will make a total of both principal
and interest to be paid during those
first 10 years of sums ranging from
81 .S40,0 900 for the first year, up to
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