WHAT AMERICA OFFERED

Evening Post, Volume CV, Issue 27, 1 February 1923, Page 7

WHAT AMERICA OFFERED

According to an earlier message, the "New York Timea's" Washington correspondent stated tsat the Treasury Department had announced the terms of the American Debt Commission proposed to the British. The terms include retroactive interest at the rate of 4^ per cent, from the date of the obligations contracted to the date of the completion of the.funding arrangements. The rate now being charged is 5 per cent. The American Commission furthermore suggested interest at the rate of 3 per cent, for the first ten years after the funding arrangements are completed, the rate being^ increased to 3£ per cent, thereafter, the total debt to be liquidated in sixty-two years. Amortisation provisions, for the yearly payments of principal also would be established, the amount for the first ten years being approximately j per cent, of the entire principal.

It is understood that the British Commission first -sought interest at the rate of 2£ per cent, from the date tho debts 1 were contracted until the funding was arranged, and 3 per cent, thereafter. The American Commission believed that Congress would not accept such an arrangement, and pointed out that the rate they proposed would mean a general average of approximately less than I 4 per cent., which is the rate the United States pays holders of Liberty Bonds and j other long-time loans arising out of the war, and the Treasury Department planned to use the funds derived from the British debt to pay off these American obligations. Mr. Laurenson, an American business man, departing from New York, quoted Mr. Bonar Law as saying to him: "If I sign the debt terms suggested by Washington, I shall be the most cursed man in England." According to the "Manchester Guardian," British Government obligations falling.due for repayment 1920-1930 were as follow:— £ 34 per cent. War Loan, - 1925-28 62,700,000 National War Bonds, 1922.29 1,508,800,000 Exchequer Bonds, 1930 ... 328,800,000 War Savings Certificates 274,400,000 Other Debts 1,269,700,000 American Loan 51,400,000 Treasury Bills 1,048,800,000, Ways and Means Advances '<. 178,400,000 Total : £4,723,000,000