BRITAIN’S WAR DEBTS

Southland Times, Issue 19770, 19 February 1923, Page 5

BRITAIN’S WAR DEBTS

SENATE PASSES BILL A SUBSTANTIAL MAJORITY (By Telegraph—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) WASHINGTON, February 16. (Received February 18, 5.5 p.m.) The Senate passed the British Debt Settlement Bill by seventy votes to thirteen. The vote was non-partisan. Two amendments were added neither of which will be opposed by the administration. The first amendment adds three Democrats to the American Debt Funding Commission and the second provides that Congressional aproval must be secured for any subsequent funding agreements with other nations, in place of Presidential approval provided by the House Bill. Of the thirteen opposing senators, nine were Democrats and four were Republicans: Borah, France, La Follette and Norris. In anticipation of an exciting finish, crowds of fashionable women, diplomatic attaches and tourists packed the Senate galleries, but they were disappointed, the discussion tapering off into routine Consideration of amendments. The end of the debate was marked by little oratory. Senator Hitchcock offered an amendment to make the interest rate 4{ per cent, with a proviso that Britain should have to refund whenever the United States was able to borrow money at a lower rate. This was rejected. The measure now goes to a conference committee where the House and Senate Bills will be brought into agreement. No difficulty is anticipated. The Senate adopted the amendment requiring Congressianal approval of debt settlements with other debtor nations, but this does not affect the British settlement. This altered the House Bill provision which would have permitted the President to give final approval to future settlements. NEW YORK, February 17. (Received February 19, 12.15 a.m.) The New York Times’ Washington correspondent says that the House Ways and Means Committee began consideration of the amendments to the British Debt Bill end members expressed confidence that the House representatives would accept the Senate’s form of Bill without unnecessary ,delay. The measure will be reported to the House on Tuesday and probably will go to President Harding for signature at the middle of next week.

SENATOR LA FOLLETTE’S OPPOSITION. WASHINGTON, February 16. In the debt debate Senator La Follette declared that the funding of the British debt on the proposed terms means that the United States will be pledged to secure the territorial integrity of the British Empire for the next sixty-two years. He said he would favour cancellation of the entire European debt if it would remove Europe’s baneful influence on American foreign policy, but cancellation would only aid imperialism. He urged the Senator to reject the settlement and refer the whole matter back to the Debt Commission. THE BRITISH SETTLEMENT. WHAT THE SETTLEMENT MEANS. LONDON, February 16. In the House of Commons the Hon. Stanley Baldwin, Chancellor of the Exchequer, said the settlement with America, which the Government had expressed the country’s willingness to accept, fixed the British debt to the United States at 4,604,128,085 dollars, of which 4,128,085 dollars would be paid in cash, and the balance funded on the terms announced. This involved a yearly payment at par of exchange of £33,000, 000, rising to £38,000,000 in ten years, or 8 per cent, more at 4.30 dollars to the £. These figures were exclusive of 61,000,000 dollars, plus interest, under the war agreement to purchase silver, which w’ould have to be liquidated by May, 1924. The Exchequer would continue to seek the most advantageous terms it could obtain from America. How far that was possible depended largely upon the arrangement they made for redeeming the debt.