The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1926-04-08
Push Plan to Delay Debt Approval

: 10 improve the chances for favorable
action on the Italian controversy.
Propaganda for Cancellation.
The proposed debt settlement met
barrage Of oratorical opposition last
week and the results were evident
in the comparatively weak defense
put up by the administration spokes-
men. Senator Howell, (R) Of Ne
braska, based his opposition on the
contention that the armistice had
hardly been signed before the British
chancellor of the exchequer had hint
ed the possibility of mutual cancel
lation of inter-allied debts.
From this time on, with increasing
frequency the responsible officials of
the European governments concerned
have harped upon the ultimate pro-
liability and the immediate need of
such a step, he charged, backing his
statements by copies of official cor
respondence between the various gov
eminent heads. He contended that
the pact wiped out the principal of
$2,150, 900 due the United States
and imposed besides an annual deficit
of $67,067,000 on the interest charge.
This represents the difference be-
tween the IL per cent which Italy
would actually pay annually as in
terest and the AIS per cent which the
United States is obligated to pay the
holders of its liberty bond issues, out
of the proceeds of which the Italian
loans were made.
England, Better Bargainer.
Great Britain, Howell pointed out,
had obtained more favorable terms
than the United States. AS Senator
Borah brot out in his speech a little
later, the Italian debt mission, fresh
from their success in driving a bar
gain with America, had gone to Lon
don and there agreed to pay England
$22,5O0,000 a year for the first five
years Of the agreement This COM
pared with the S5,OOO,OOO a year
which was all the American debt
commission could get out of them,
Borah explained. The British, in ad-
dition, were to get per cent interest
annually while the United States got
nothing. Moreover, Howell pointed out,
Italy agreed to allow the British gov
ernment to retain as security $685.
$4,000 in gold, which has been on
deposit In the Bank of England since
the last part of the world war.
Approved Without Discussion.
Senator Pat Harrison, of Mississip-
pi, in a speech which denounced the
agreement as a discrimination against
the other ally nations, declared, with.
out any contradiction from Smoot,
the chairman of the debt board, that
the finance committee of the senate
had had no opportunity of discussing
the pact. ut came before the finance
committee" he continued, explaining
that he was on this committee, land
it was not discussed for as much as
half an hour. Nobody knew anything
about it except the Senator from
Utah, Mr.. Smoot, and he would not
tell, nor did he tell u.s."
Territorial Gains Versus Debts.
In his address, Borah emphasized
the fact that the European Powers
were charging the United States with
trying to extort huge payments from
them, all the while ignoring their
own extraction Of installments on the
basis of a $10,000,OOO,OOO reparation
from Germany and the vast territorial
gains they secured from the world
war Great Britain alone getting
100000 square miles.
Getting Nowheres.
The fruit of three years settlement
Of the British debt upon the basis OF
capacity TO pay" Borah declared,
was campaign for debt cancella-
tons and a growing bitterness to-
wards America abroad. Another dem.
ocrat, Mcclellan, of Tennessee, in
speaking against the settlement, term
cd Mussolini u bandit dictator"
Standpat Republicans For.
Senators Edge, of New Jersey, and
David A. Reed, of Pennsylvania, both
republicans, spoke In favor OF the bill.