DEBT TO U.S.

Timaru Herald, Volume XCVIII, Issue 18030, 19 January 1923, Page 6

DEBT TO U.S.

THE INTEREST RATE.

THREE PER CENT. OR NOT?

NO AGREEMENT YET

By Cable—Press Association —Copyright. (Received 11 p.m.., January 18.) WASHINGTON, Jan. 17. It is stated definitely that the British contemplate immediate commencement of debt repayment, as soon as an agreement has been reached and ratified.

Payments -will probably he by megns of bonds deposited in tbe United States Treasury, part of "which, will be redeemable yearly. In addition to interest, the American Government may hold the bonds in the Treasury or place them on the American market. The “New York Times” Washington correspondent says rhat tho British and American debt comrnissions are still 'at odds over tbe interest charge. There will be another meeting to-morrow, and if no progress is made, it is understood ‘ that the British mission will ask for temporary suspension of negotiations. Several members are returning to England for consultation with the Government.

It is reported that the British continue to ask for a three per cent, rate, pointing out that ike Bank of England is now lending money at that interest, but the Americans declare that such a lew rate could not go through Congress. If appears that three and a half per cent. Is the lowest possTble rate Congress is likely to accept. It is now also reported that the British will ask for a 60 year funding period, while American sentiment is for a 50 year period. The situation is complicated by the fact that the present : Congress dissolves on March 4, and unless President Harding calls a special session, of the new Congress, this body will not meet, according to law, until December. Thus, If negotiations are broken off, debt settlement may be delayed until next , year. ■