Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-30
OFFICIALS SILENT
0NBAKER'S0 OPINION
Secretary MELONS Previous
Statements Concerning Gen.
erosity Are Recalled.
BY the Associated Press.

The opinion of Newton ID. Baker
President Wilson's Secretary of War,
that the United States should cancel
the debts owed by it's allied and asso-
ciated powers, found little reaction
today in the official circles of Wash
ington.
In the absence of Secretary Mellon,
who is in Europe, Treasury officials
were disinclined to comment except
to call attention to the statement is
sued by the Secretary prior to his
departure. This statement, it was
pointed out, was called forth by a
plea for cancellation of the French
obligation, which had been met by
the Secretarys remark that mo
other creditor of France has accorded
such generous treatment" as has
America.
| The arguments propounded by
| former Secretary Baker, ii was point
ed ont further had been used re-
peatedly on the Senate floor during
the debates on the various settle
ments and had failed 10 effect modi-
tication of the Italian and other debt
agreements.
Melons Statement Recalled.
After reviewing the entire subject
of debts owed by foreign powers ana
particularly that owed by France
was recalled that Secretary Meiioh
had said that in effect America mas
cancelled the obligations of France
for all advances during the war. and
France, in the Mellon.Berenger agree
rhent has undertaken only to repay
the advances and obligation supse-
quent to the armistlce.
The settlement of the French
obligation," he continued. mas Deeh
made along somewhat different lines
from the settlement OF Ffencn opIisa'
tions to Great Britain. Win the blie
ish banking advances and commercial
ohlipations have been treated sepa-
,ately from the war debt proper.
"Jf however, we compare the set
Element of all OF Frances inhedted-
ness to England with the settlement
If her Indebtedness to America
France has had generous treatmen.
from us. Particularly Is this true
during the first five years. which VIII
he the most difficult for France. Inc
American settlement with FRANCE
embraces all of Frances lndebteo-
ness. and represents, in the OPINION
of the American commlsSloh' FRANCE
capacity to pay"
Holds Matter Up to Congress.
J BEFORE his departure. it Was re-
called Secretary Mellon. who Is
chairman of the Debt Commission,
had served notice that the commits
sion had washed IT'S hands or the
French debt when the agreement was
signed with Amba ssador BerenSer
nd that the matter now was entire'
lv in the control of Congress, which
had approved previous agreements
entered into by the commlsslch.
Former Secretary Bakers views
were expressed in signed stalemenl
in the current NUMBER vi Ilaue
Winds. monthly business pubhcatlon
of the Union Trust Co. of Cleveland
He criticized the Dawes plan as
working too great a hardship upon
Germany and declared that the Brit
;sh debt settlement had resulted in
magnificent disaster.
Clemenceau Plans New Letter.
Striking off the war debts owed to
this country. he declared, Ought to
relieve England, France. Italy, Bel
CHM, and the rest of our allies. ana
in turn ought to require the release In
some mart of the burdens imposed
upon Germany.
"This ought to be done. he con-
timed. "at round table where a
representative of the United states
should be authorized to speak with
authority and to demonstrate that
Americas interest is not dollars. but
in reconstructed international or
der
Jard.Iendee. France, the retreat OF
n Clemenceau. Frances war pre-
,,,ier there came semi official an
nouncement that the Tiger likely
win write another open letter on the
subject of debts to follow up his re-
cent communication. which was ad-
dressed to President Coolidge.