The midland journal. (Rising Sun, Md.) 1885-1947, 1926-04-30
NEWS REVIEW OF
CURRENT EVENTS
Senate Rati6es Settlement
of Italy's Debt-Turkey
Alarmed by Mussolini.
BY EDWARD W. PlckARD

BY EDWARD w. PickARD
G ETTLEMENT of Italy's war debt
~ to the United States, as arranged
by the joint debt commissions, was
finally approved by the senate, de-
spite the efforts of considerable
number of both parties led by Sen
ators Borah and Reed. The vote in
favor of the funding of the debt was
"a to 33. Reed of Missouri voted in
the affirmative in order that he might
make, next day, quite useless mo-
ton to reconsider so that Senator
Howelps amendments might be de-
bated.
The Italian agreement provides for
the funding of a debt of $2,O42 ,000,-
600, including principal and accrued
interest, over a period of 81 years.
During the first five years Italy is to
pay $5,000,000 annually without inter-
est. After the first five years interest
is fixed at one-eighth of l per cent
for ten years and then increases, for
successive ten-year periods, to one
fourth Of per cent, One-half of per
cent, three-fourths of l per cent,
per cent, and, for the last seven years,
2 per cent
When the agreement is fully car
ried out, for an original debt of ST.
64S,OOO,OOO the United States will
have received during the period to-
tai of $2,4O7, 100000. of which $780,
100000 Is interest.
The calculation that the italian
funding represents a settlement of 2S
cents on the dollar is based on the
difference between interest paid by
Italy for 81 years and the Az per
cent paid by the United States gov
eminent to Liberty bond holders who
furnished the money for the war
loans.
Consideration of the debt settle
ments with Belgium and other minor
countries was begun by the senate
with every prospect that the terms
agreed upon would be ratified.
Dispatches from Paris said Premier
BRAND had informed the foreign af-
fairs committee Of the French senate
that Ambassador Berenger and Secre-
tary Of the Treasury Mellon had
agreed in principle on a plan for
funding the French debt 1t was I'M
derstood the political and commercial
debts would be merged and that
France would pay annuities, beginning
at $25,000,000 and rising to 100000
900, until g. years have elapsed. While
the Safeguard clause" is to be ADAM
doned, Frances capacity to pay at any
time in the future might be revised on
the basis of the amount it was pos
sible to collect from Germany.
d REPRESENTATIVE GORMAN of
N Illinois, who said he wanted to
save his colleagues in other states
from being defeated on the World
court issue as was Senator Mckinley,
offered in the house a resolution re-
pudiating the Burton resolution APP
proving American adhesion to the
World court, passed by the house a
year ago. The German resolution
would have the house of representa-
tives express the hope that the United
States will Immediately take the neces-
sary steps to keep out and stay out of
the World court. The resolution pro-
vides further that the house express
its disapproval of the League of Ma
lions and its agency, the World court,
and declare that it will not make any
appropriation for dues or other ex-
penditures of the United States as an
integral. part of the discredited World
court or of the British seven-votes-to-
our-one League of Nations"
Secretary of State Kellogg, ex-
pressing the administration view that
no new agreement is necessary to give
effect to the conditions and reserva.
lions on which the United States is
prepared to adhere to the permanent
court of international justice, has for
mally declined to send delegate to
Geneva in September to explain those
conditions and reservations to the con.
ference of the forty-eight signatory
powers of the court He pointed out
that the senate reservations provide
specifically that they must be ac-
septed by an exchange of notes be-