TERMS OF PAYMENT

New Zealand Times, Volume L, Issue 11436, 5 February 1923, Page 5

TERMS OF PAYMENT

THE DEBT TO AMERICA BRITAIN’S DEBT WILL BE WIPED OFF IN SIN TV-TWO YEARS. INTEREST AT 3i PER CENT. By Telegraph.—Press Assn. —Copyright. Australian and N.Z. Cable Association. (Received February 4, 5.5 p.m.) WASHINGTON, February 2. The Treasury Department has issued a statement giving details of the debt funding agreement. Payment of the principal is to ho made by annual graduated instalments, ranging from 23 million dollars for the current year to 175 million in the sixtysecond year, when the total sum will be repaid. Interest will be at the rate of 3 per cent, for 10 years, and 3J per cent, for the succeeding period, calculated on the unpaid balance of local principal indebtedness, which is placed at four billion 600 million dollars, for which the British Government bonds Vill be issued to the United States Government at par. Britain has the option of repaying the principal in three-year periods.

4,604,128,085 DOLLARS. The principal of the notes to be refunded is 4,074,818,358 dollars. Interest accrued and unpaid to December loth, at tile rate of 41 per cent., amounts to 629,§36,106 dollars. The total is approximately 4,704,054,465 dollars, from which is deducted the payments made in October and November last, with 4} per cent, 100,526,379 dollars in all—leaving a balance of 4,604,128,085 dollars, of which 4,128,085 dollars is payable in cash. The principal of the bond issue of four billion 600 million dollars is payable by annual instalments on a fixed schedule, subject to the right of the British Governments to make payments in three-year periods, and pay off additional amounts of the principal on any interest date upon 90 days’ notice. DEFERRED INTEREST. For the first five years, one-half of the interest may be deferred and added to the principal, bonds being issued similar to those of the original issue. Any payments of interest and principal may be made in any United States Government bonds issued since April 6th, 1917, such bonds to be taken at par and interest added. DISPOSE OF MONEY. It is stated that President Harding opposes a rider to the debt settlement providing that the money he U9ed to pay the soldier®’ bonus, believing that the debt legislation should stand on its own merits. The President does not object to an amendment giving the Democrats • representation on the Debt Commission.