Evening star., 1933-09-18
DEBT CONFERENCE
BEGINS OCTOBER ).
Sir Frederick Leith-Ross to
Open Conversations With
Treasury Officials.
Continued From First Page.)

(COnClnueQ from f1TSC Hdkc.D
from the exercise Of this privilege until
they have placed themselves upon the
same basis as Great Britain and the
others which made token payments.
instance, must pay in full the $l9,-
600 900 installment defaulted last De-
cember and make a part payment on
the June installment Of $40.O00,0 900.
Discussing the British token pay
ment offer, Mr.. Roosevelt has said:
"Such payment does not. Of course,
in any sense prejudice the freedom OF
either government in any subsequent
discussion Of the entire debt question
which will take account of this and
other debt payments.
II announced in November. 1882.
policy to the effect that a debtor may
at any time approach creditor with
representations concerning the debt
and to ask for readjustment Of the
debt or its terms Of payment.
Under such circumstances the debt
or government makes such representa-
tions as it deems Of Importance with
respect to the desirability Of any re-
adjustment in the terms already agreed
upon.
Tn q spirit Of cooperation I have
as executive noted the representations
Of the British government with re-
spect to the payment Of the June Is
installment inasmuch as the payment
made (the partial payment Is accom-
panied by clear acknowledgment Of
the debt itself.
Not Considered as Default.
I'm view Of those representations and
Of the payment have no personal
hesitation in saying that I do not
characterize the resultant situation as
default.
Beyond this the law and the Con-
stitution do not permit me to CO. The
American public understands clearly
that the settlement under which these
debts are now being paid was made
under the authority Of Congress and
that Congress alone has the right to
alter the amount and method Of pay
ment of this debt.
Further than this. the Congress in
December. 1881, in approving the NOR
atorium in June Of that year, specifi-
cally set forth that the debt should not
be Cancelled or reduced.
Under my constitutional power and
in accordance with the terms Of the
policy which have set forth, can
entertain representa- ations of the Brit
ish government concerning the entire
settlement and the British government
has requested that such opportunity be
afforded. I have, therefore. suggested
to them that such representations be
made in Washington as soon as con-
venient"
Next December Great Britain has
falling due a payment of SAL ,720. .765 on
principal and s75,950 900 on interest. a
total OF sll7,670,765. This Is in addi
tion TO the unpaid balance Of $65, ,950,-
900 which was due in June
All the debtor nations together will
owe the Washington Government $751;
1853 $50 In December, of which $l02,-
747.7S4 Is interest and $50005.S75 is
principal The principal payments
could have been legally postponed by
rendering notice 80 days in advance.
The time for doing this expired Satur-
day night.
The British debt had its origin in
cash loans Of 1896 .000,0 before the
armistice and $58l 100000 after the
conclusion Of hostilities total Of $4,-
277OOO.OOO
At the time the debt was funded the
London government owed the United
States $4,0748l8358 ON principal and
accrued interest Of s529 ,309,727.
The debt was funded at 81 900 .000,-
600. This was to be payable over 81
years. At the rates Of interest agreed
upon the total amound payable over
this period was s11 los. .965 900. In the
last II years payments have totaled
81, ,447, ,27O.000.