DEBT FUNDING

New Zealand Times, Volume L, Issue 11435, 3 February 1923, Page 6

DEBT FUNDING

SETTLING OF DETAILS BORAH SAYS AGREEMENT WILL NOT'HELP EUROPE. BILL BEING DRAFTED. By Telegraph.—Press Assn.—Copyright. Australian ami N.Z. Cable Association. (Received February 2, 8 p.m.) NEW YORK, February 2. The “Now York Times” Washington correspondent says: “Tho American Debt Commission will meet Sir Auckland. Geddes again to-morrow to consider further minor details of the debt funding, and it is expected that their conclusions will bo immediately submitted to President Harding, and a bill drafted for Congressional consideration before the end of the week.” Senator W. E. Borah has issued a statement declaring himself dissatisfied with the debt terms. He would l-athcr see aii the Allied debts cancelled than the present economic conditions of Europe continue. The funding of debts would pot resurrect Europe economically, and American commerce would continue to lose a total greater than the debts. SOLDIERS’ BONUSES.

Representative J. W. Fordney stated that President Harding favours the application for payment of the interest on the British debt to tho soldiers’ bonuses, and there is a possibility of an amendment providing that the soldiers’ bonuses may be attached to the new debt funding law, although President Harding opposes the conjunction of the two measures. The President feels that nothing should be don© regarding the bonus until interest in suffi•eient amounts lias been received.

AN UPROAR IN UNITED STATES SENATE. BITTER PARTISANSHIP. Australian and N.Z. Gable Association. (Received February 2, 8.25 p.m.) WASHINGTON, February 2. The Senate was in an uproar this evening when the discussion of the British debt terms was started' o.y Senators H. C. Lodge, J. T. Heflin, Kenneth McKellar, J. T. Robinson, and others. Senator Heflin intimated that exPresident Taft, when in England last summer, may have been the one who promised low interest rates, and insinuated that ex-President Taft represented Wall street. Senator Carter Glass bitterly arraigned Senator Heflin for his attacks on England, and Senator Heflin was called to a point of order by Senator J. W. Wadsworth. Several senators nearly came to blows. The debate was bitterly partisan. QUICK JJECISION CABINET REALISES URGENCY. SOME MEMBERS DOUBTFUL. Australian and N.Z. Cable Association. LONDON, January 31. The decision regarding the British debt to America was discussed at Tuesday's Cabinet meeting, but the night was allowed in order that some members of Cabinet-, who were doubtful of the wisdom of encumbering posterity with an -annual burden of £30,000,0CX) or £30,u00,000, might sleep on it. INFLUENCES IN FAVOUR. As a result Cabinet unanimously accepted Mr Stanley Baldwin’s view that immediate acceptance was desirable in order that the present • Congress which terminates on March 4th may deal with the matter. It only needed 10 minutes to clinch matters, so the meeting of Cabinet was one of the shortest on record. The factor which helped Cabinet to make up its mind was the strong opinion in financial and commercial circles in favour of an immediate solution. “GREATEST SATISFACTION.” Captain Frederick Guest, who has just arrived from the United States, declared that the Cabinet’s debt funding decision would give the greatest satisfaction in the United States, and further cement the good Anglo-Ameri-can feeling, which the events of recent years had promoted. He thought that some of Mr Baldwin’s observations in Saturday’s interview were inopportune and regrettable, but today’s decision would efface the had impression they had made in America. It would have been a thousand pities to allow the Anglo-American debt question to drift until the much-talked-of Labour Government arrived with proposals for debt repudiation, capital levy, and reduction of interest. EULOGY OF TERMS IS INTEREST TOO HIGH? Australian, and N.Z. Cable Association. (Received February 2, 8.25 p.m.) LONDON, February 1. , Sir Harry Goschen, presiding at a meeting of directors of the National Provincial Bank and Union Bank, said that yesterday’s Cabinet decision regarding the American debt stood out as a landmark in our financial progress. Same might think the rate of interest more onerous than might have been expected when the purposes for which the money was required were considered, but tho Government deserved sincere congratulation for its courage in facing tho situation. AMERICAN ACTION GIVING'EFFECT TO AGREEMENT. Australian and N.Z. Cable Association. WASHINGTON, February 1. On the State Department’s receipt of the official notification of Britain’s debt acceptance, the American Commission called a meeting for late today to draft plane for presenting the terms to Congress. It is learned that the Commission wae divided regarding procedure, some members favouring broadening tho Debt Funding Act, so that the Secretary of State and the Commission could complete tho arrangement. Other meflibers prefer to submit the Bill approving a upecifie Anglo-Ameri-can agreement. BALDWIN’B BPEECH GOVERNMENTS DISAVOWAL. Australian and N.Z. Cnble Association WASHINGTON, February 1. Tho British Government, through its Embassy, has disavowed Air Stanley Baldwin’s alleged aspersions on the American Congress. Tho statement read: “Remark* at-

tributed to Mr Baldwin by certain organs of the American Presa that the debt had got on the nerves of the American people, and that Congress wouldn’t be willing to eat its own legislation, are without discoverablb foundation.” "CHARITY BECINB ” CANCELLATION OF DEBTS. Australian and N.Z. Cable Association WASHINGTON, February 1. Mr G. W. Edmonds has introduced a motion in tho House o 1 Representatives providing that any American citizen who believes in the cancellation of war debts can prove his sincerity by turning in Liberty Bonds at the Treasury and accepting no compensation, the Secretary of Treasury being authorised to cancel an equal amount of tho debt of any European nation [that such iitie'll mav dosiffnate.