FUNDING OF BRITISH DEBT.

New Zealand Herald, Volume LX, Issue 18322, 12 February 1923, Page 7

FUNDING OF BRITISH DEBT.

SPEEDY PASSAGE BY HOUSE

FIRST ' STAGE IN SENATE. FAVOURABLE REPORT. Br Telegraph—Press Association—Copyright. ■ (Received 4.5 p.m.) A. and N.Z. WASHINGTON. Feb. 9. The Administration Bill sanctioning the settlement negotiated by the United States Debt Commission for the repayment of Britain's -war debt of 4,600,000,000 dollars, was passed by the House of Representatives by 291 votes to 44, and is now before the Senate.

The announcement of the Democratic leader in the House, Mr. Garrett, that he would support the measure Attracted numerous Democratic votes. The Houso passed the Bill in record-breaking time, the final vote coming within two days after the President submitted the agreement to Congress.

The Finance Committee of the Senate reported favourably on the Bill after two sessions largely occupied by Mr. R. Smoot explaining the settlement plan to his colleagues. Mr. La Follette, Mr. T. J. Walsh, and Mr. P. G. Gerry opposed a favourable report, arguing that the committee shodld have more time to study the measure. The remaining eight members voted favourably. ~ ..... ; Stonewalling Threap in Senate. The House of Representatives* made a slight change in the terminology of the Bill. It will be necessary, therefore, for the committee of the House and Senate to confer for the purpose of making the wording uniform. : This may delay the measure a day or t-wo, but it is* expected that tho Senate will pass the measure! by a substantial majority despite the threat of Mr. W. L. Jones to stonewall until he obtains a vote on his Ship Subsidy Bill and that an extraordinary session of Congress will not be necessary. In the debate in the House Mr. Burton, who is a member of the United States Debt Commission, declared that the Bill was of the most far-reaching importance of any since the days when American armies were battling in tho field. . He reiterated, that the Administration . was opposed to cancellation of war debts, but declared that it as as much in the 'United States' interest as in that of debtor ' nations that some leniency should be shown in settlement. He added that if the United States cancelled her debts with Europe in a ferment, the money might be used for military purposes.-

Answering Democrat questions, Mr. Burton said that it was impossible for Britain to pay a higher rate of interest than that provided in the settlement. His expression for the future peace of the world and friendship between the United States, and Britain evoked enthusiastic applause. Democratic Leader's Support.

Mr. Gollier, opposing the Bill, charged the Ways and Means Committee with acting with indecent haste, giving no information regarding the negotiations to Democrats. He accused the Republicans of playing partisan politics in the negotiations, and criticised the Administration for not having Democratic representation on the Debt Commission.

Mr. Longjworth vigorously advocated acceptance of the measure as a long step toward the stabilisation of world economic and financial conditions.

Mr. Oldfield declared that he would not vote for the proposition to charge American taxpayers a higher rate of interest than British taxpayers.

Rebel yells greeted the Democratic leader, Mr. Garrett, when he announced that he intended to vote for the Bill, and called on his Democratic colleagues to do likewise. " I am willing to forget the partisanship of Republicans during the war, their narrowness in selecting a debt commission, and their indecencies in the campaign of 1920," said Mr. Gar-, rett, "and rise to the dignity of the subject and the bigness of the hour and support this settlement."

The House adopted the Bill.