Evening Star Newspaper, January 27, 1923, Page 1

WEATHER, Rain tonight and tomorrow; some. what warmer tomoOrrow. ‘Temper: ture for twenty-four hours ended 2 p.m, today: Highest, 43, yesterday; ' lowest, 3¢, a [ report on page 9. 3:15 p.m, 16 am. Closing N. 1. Stocks and Bonds, Page 18 Entered as second-class matter WITH SUNDAY MORNING EDITION ““From Press to Home Within the Hour” The Star’s carrier system covers every city block and the regular edition is delivered to Washington homes as fast as the papers are printed. Yesterday’s Net Circulation, 95,231 WASHINGTON, D. C, SATURDAY, JANUARY 27, 1923—TWENTY-SIX PAGES. n, D. C. “* TWO CENTS. 1 BALDWIN BLAMES DEBT 28,761. No. post office Washingtol . FRENCHDOUBLE || eEn. LUDENDORFF AND 50,000 RUAR FORCES 10 " GUARD EVERY BT Valley Quiet, With Duessel- dorf Virtually Under Martial Law. TELEGRAPH EMPLOYES { THREATEN TO STRIKE Occupying Forces Preparing to Keep Troops on Scene for Several Years. By the Associated Press. While the French were pouring additional troops into the Ruhr to- day and tightening their control, the population of the valley remained uict. Duesseldorf was virtually nder martial law. The telegraph employes in the val- ley have notified the Fremch that they would strike Monday morning if the troops were not removed from the telegraph offices. The effectiveness of the Fremch cordon around the Ruhr was in- dicated by their halting rolling stock unnecessarily being aent out of the valley. An unconfirmed report comes tisrough Paris that the little entente, through Czechoslovakia, is about to offer mediation between France and Germany. The last act in the American with- drawal from the Coblenz area, oc- curred today when the district was formally transferred by Gen. Allen to a French army commander. By the Associated Press. DUESSELDORF, January 27.—Fresh contingents of troops are continuing to arrive In the Ruhr and are taking posi- tions in various parts of the valley and 8150 on the other side of the Rhine. By tomorrow evening it Is expected that in the occupled zone there will be twice the number of effectives that were there last Sunday. How completely the French already encircie the Ruhr was shown during the motives where one would have been suf- terior Germany, drawn by four loco. motives when one would have been suf- ficient, was halted east of Dortmund and three of the locomotives returned to_the occupled area. The telegraph division employes of® the postal service sent a delegation to Gen. Simon today and delivered’ an ultimatum_for the removal of soldlers from the premises of the telegraphers, failing which a strike would be. called at 9 o'clock Monday morning. @ Complete calm prevalls throughout the entire valley today,. There have been no further. demonstrations since those of Thursday. The efforts of the German magnates to evade payment of the tax on coal due January 25 by journeying into the interior of Germany and paying the tax at Muenster, Cassel, Hamm or other unoccupled cities was folled by the French serving notices upon the mag- nates this morning declaring such pay- ments were considered null and void, The coal men were told they must hold themselves in readiness to pay again the entire amount of the tax at the Duesseldorf branch of the Relchsbank | ©on a date of which they would be in- formed forty-eight hours previously. More Resistance Anticipated. A further strengthening of German resistance was generally anticipated by the French today as an aftermath of yesterday's meeting of Ruhr polive chiefs, burgomasters and state offi- cials, at which, it was sald, nieasures for'parrying the occupation were dis- cussed, One immediate result of the conference was the arrest of its chairman, Dr. Gruétzner, president of the province of Rhenish Prussia. Dr. Gruetzner was later released after (;en.mslmonl hn: warned him that he would again be taken into custos 1t he remained obdurate. o The French are understood to be ready for any developments, and with additional troops on the scene have this city practically under martial Jaw. Public places, such as hotels, cafes, cabarets and theaters, were closed last evening at 10 o'clock by the occupationists, while soldiers walked the beats of the German police, More Mobilizsation Looms. Reports that the French contem- plate summoning several military classes suggest the extent to which the Paris government is preparing to Bo in forcing the Germans into line. It 1s thought likely, however, that the next {mportant move will not come until atter January 31, the time limit for the 500.000.000 gold mark repara- tion payment. Industry and commerce are being seriously “affected by the rail strike, and the French are ready to try their hand at operating the lines with the stance of the 3,500 rail workers ;pected in the Ruhr today. Cannot Move Food Trains. Having established their own com- munications through Nuess Junction, #0 as to avold Cologne, the occupation muthorities have informed Berlin that they cannot move civilian food trains, and thus the questiop of hunger may be added to the situation. The ef- fect of the rail strike is also being felt in the mines and steel plants, for many of the workers are being forced out. Imposition of the customs control, by which the French will be able to direct exports and imports into occu- pled any, is expected soon. This step is halled in German quarters as the last link im the chain that will imprison and ‘stifie Ruhr industry. nother court-martl is In prospect Burgomaster Schmidt and Dr. Oexle, tho‘)\uuddor! police chief, both of under arrest as'a result e ing’s disturbance, at Mayence on charges of £ailing to preserve law and order. PLAN LONG OCCUPATION. S A 3 French.and Belgians Ready to Stay Years if Necessary. BY PAUL SCOTT MOWRER. 37 Oubla'ta The Btar and Chicago Datly News. ’ARIS, January 37.—In the face of nf Gtru:n resistance l‘r:no- n:d are planning to stay in the indefinitely—perhaps . several Belgium_the FASCISTI By wireless to The Star and the Chicago Daily News. OPEN WAR ON MUNICH BY GEORGE WITTE. Copyright, 1028. BERLIN, January 27.—Adolph Hittler, leader of the Bavarian “gray shirts,” and back of him Gen. Ludendorff, declared war on the Munijch government today. ‘When notice was served on him that the mass meet- ing of his followers called for tomorrow had been forbidden, he replied: “A victorious wave of nationalism will of two hours.” sweep away the government inside It was not Hittler's bold threats, but secget service re- "ports that the German fascisti now number 50,000 men, which induced the Bavarian government to proclaim a state of siege all over Bavaria be- ginning today. Reichswehr troops as well as all the police forces have been called out for Sunday, when the nationalists are supposed to meet. In the meantime, the Bavaridn government has issued instructions to the local authorities to break up any gathering of more than twenty persons. The Bavarian minister of the interior, Herr Schweyer, has issued a state- ment, in which he says: “The Bavarian government feels that it is its duty to stand by the central government in every question, and because nationalistic demon- strations are bound to be detrimental to the interests of the whole people at this time we are determined to supp! ress any such demonstration, which in the long run may hurt the government, no matter whether it is of a nationalistic or communistic character. . In view of the fact that Herr Hittler has announced to us that he will hold his anti-government mass meeting just the same; we have called out all the police and troops available to suppress all riots that may occur.” “RESIST FRENCH, ORDER FROM CUNO Chancellor Instructs Ruhr Officials to Refuse Orders on Customs. LABOR TO EXTEND BALK French Getting Best of Situation. Diplomacy Ruling in Latest Moves. BY GEORGE WITTE. By Wireless to The Star and Chicago Daily ews. Copyright, 1923. BERLIN, January 27.—Chancellor Cuno Issued strict orders today to all government officials in the Ruhr zone occupled by the French to refuse to obey orders given them by the French in connection with the plan to estab- lish a Rubr custom -frontier. “No German officlal is allowed to surrender to the invaders any sums collected in the shape of taxes or du- ties, or to obey commands given him to collect euch taxes or duties on be- half of French suthorities,’ is the text of the chancellor's imstructions. It was due to this order that the ratiroad.men in the Rubr district and in the old occupled territory plan- ning to bl the French attemft to carry out thdif intention of fun- ning the rallroads themselves, seems to have been tried in Dus: dorft Friday. That attempt was a complete’ fdilure, according to reports received here. In spite of all these developments it is believed ting the best of it as the situation stands now. In some circles in Her- lin it Is the opinion that the French tried to rush things at the start. but that, realizing this fact, they are now |2 advancing slawly in accordance with |P the rules of diplomacy. o FRENCH TAKE VER t t 1 i e o day. | House In conference are Representa- weré eliminated points of order Thomas L. Blanton of Texas will be for Girls, at a cost of D. C. FINANCE BILL ISINCONFERENCE House Sends Measure to Subcommittee—May Cut . Off $2,000,000. WILL 0. K. SCHOOL ITEMS $500,000 for Sites and Buildings to Be Retained in Bill The District appropriation bill was ent to conference in the House to- The representatives of the ive Louis C. Cramton of Michigan, acting chairman of the subcommittee on the District Representative and Representative Johnson of Ken- appropriation bill; Evans of Nebraska ucky. The appropriation bill for the sup- port of the municipal government during the fiscal year beginning July next, as passed by the Senate, car- totaling $2,600,000 above those allowed when the meas- ure sed the House. It is under- tood that the House conferees will ndeavor to lop off about $2,000,000 LR S TR i s to ng ,000 for school ites . and school bulldings which in the House on by Representative eed upon by the House conferees. 'Wo of Lhe biggest items added by the Senate, which will be opposed by thé House conferses provide for the ew bullding for the office of the recorder of deeds and the purchase of certaln tracts for park lands. These items amount to $1,175,000. The House conferees are expected 180 to oppose the Senat, roviding for the purchase of a si nd the erection of two buildings for se by the National Training School $62,000. Representative Blanton has let it be known that he will not endeavor further to prevent agreement upon the school bulidings items. AMERICAN SECTOR, DISTRICT TO GET - By the Assoclated Press. COBLENZ, January 27.—The Cob- lens-area of occupled Germany, held ! by American troops since the estab- lishment of the allied watch on the Rhine, was turned over to the French at naon today. Maj. Gen. Henry T. Allen, com- mander-in-chief of the American forces in Germany, and Gen. Marty of the French army were the two military officers inyolved in the transfer. , This final ceremony, ending the four years of American ocoupation, was of the simplest character. Gen. Marty, acoompanied by a sing French officer, came to Gen. Allen headquarters, where the American commander and his full staff re- ceived them. Promptly at noon Gen. Allen turned over the area so long under the oontrol of his forces to the French commander. ‘The formal transfer of authority took but a few moments. It was accompanied with brief expressions of regret at the departure of the Americans. The assumption of control by the French, it is stated, will be followed lmmodlueldv by application of the sam: isciplinary measures that the French have been imposing upon the Prussian civil authorities else- where in the Rhineland. This policy heretofore has not been extended to the Coblenz area under the Ameri- cans, and any involvement of Gen. Alén with the German officlals in this connection has been avoided. a de o] jconditions, trict committee sald tod: unable as yet to state what District |f legisiation he will call up on Monday. It is known, however, that the first effort probably will be to pass the Capper-Zihiman bill providing for a board M the so-called teachers' pay reorganjsation bill and in the pro- ,:h‘ ‘Walter Reed Hos; tial development to r ing congestion. Repi man is _hopeful of th measures can receive consideration Monday. % THODAYSINHOLSE Next Monday and the Monday fol- lowing are to be District days in the House, made on the floor late yesterday. Next Monday happens to be the fifth Mon- according to arrangements ay in the month and the fifth Mon- day is not regularly mortgaged for ny particular business. Under these House Leader Mondell skbd unanimous consent that it be evoted to consideration of District legislation. Chairman Focht of the House Dis- that he s of accountancy, which will ass upon applicants for certificates as public accountants. Representative Fred N. Zihiman of land is particularly Interested in and school ed extension of 14th street through ital grounds to for residen- leve the hou: sentative Zih! both pen suburban territo: that on Planes to Drop Flowers on City To Honor Knickerbocker Victims Acting for a committes of the Knickerbocker Repre- sentative W. D. Upshaw of Georgia has secured the consent of the Navy Department for two air- planes to drop flowers over Wash- ington tomorrow afternoon as a memorial .to ‘those who suffered and died in the Knickerbocker Theater tragedy on the night of ‘January 28, & year ago. Te Start at 3:30 0°Clock. The planes will stirt from the naval air station, in Anacostia, at 2:30 o'clock, fiying first toward the site of the Knickerbocker play- \ house, where more than 200 per- sons were hurt and njnety-eight lost their lw{nn Thence, urcl:fi lowly over Washington, flowers ‘lfl from the planes. These ive besn furnished by the d families of the fok- “wictims, flowers | friends erbocker Speaking on the first anniver- sary, Rnrreuntltlu Upshaw, who lost a niece in the tragedy, sald: “It is a beautiful thing for the naval air service to thus memo- rialize the tragedy that shocked the nation a year ago. Not only because it occurred in the nation’ capital, but largely because faulty ‘building was the result of careless national and munici; ardianship, it is fitting that this rst anniversary should reflect a national aspect. Divine Compensation. “That crown of sorrow that wiped out all lines of political and creedal cleverage and binds all hearts in one great common broth- erhood carries with“it, after all, & divince compensation. The sacred injunction to invite ‘weep ‘with those ‘weep' is the call of God to the whole country to be dus gvecy - talling flower on th ‘s mellowed Y‘m“w g i { T TTTAT i 1A tid ‘”H”w,fl‘ e g ”{:",Hif““lfl' i), i)’ - SENATE MAY PROBE BUREAU OUSTINGS Caraway Declares Restoring of Civil Service Status- Does Not Do Justice. DISMISSAL QUESTIONED Says Some Employes Involved Had Nothing to Do With Bonds Reported Duplicated. An investigation by a speclal com- mittee of the Senate of the dismissal by executive order of twenty-elght employes of the bureau of sngraving and printing last year, who; according to-s. White House announcement yes- terday, are to have their civil service status restored, will be provided for in a resolution which is expected to be introduced in the Senate today. ‘Who will father the’resclution is yet to be determined, but .« is expected that either Senator Norris of- Ne- braska or Senator Caraway of Arkan- sas will offer it. Senator Caraway sald today that the informal announcement from the White House that the civil service status of the dismissed officials would be restsored soon, failed to do justice to the men and women who had been summarily dismissed from the service. In the first place, he said, he did not interpret the report from the White meaning that these em- uld be given back the posi- which they formerly held, but that they would be given other places under the clvil service, probably at lower salaries, than they formerly re- ceived. Caraway to Speak. “It is reported that the reason for the dismissal of these employes was that millions of dollars worth of bonds had been duplicated in turning them out at the bureau,” said Senator Cara- way. “As a matter of fact, some of the dlsmissed employes had nothing to do whatever with the bonds and were not even in the same building where they were being turned out. Evidently there was some other reason for their the matter on the floor of the Senate. No Fraud Establisfied. While consideration was being given at the Capitol to the proposed resolution for investigation, it was Tovealed at the Treasury that no fraud, conspiracy, or dishonesty was estabiished at the bureau of engrav- ng by the two separate investigations already conducted. ‘This result had the two-fold signifi- not only = clearing _the ght employes, who were el from their April 1 by order of the t of all suspicion, but also tablishing the fact that, accord- ing to government records, there are no bogus government bonds in the hands of the public at this time, The findings of the government in- vestigators established beyond any doubt, it was sald, that there has been no over-issue of government bonds or securities, andsthat the pub- lic need have no concern about the face value of their victory and liberty bonds. There was founr, Treasury of- ficlals sald, a record of minor-thetts, which had occurred during the year, but these had already been known to officials. The source of the suspicion on (Continued on Page 2, Column 7.) THE DODGER OF DOORN. FIGHT ON DAUGHERTY ' TO GO ON, SAYS KELLER Announces Intent to. Push Im- peachment, But Discloses No Definite Plans. By the Associated Press. SAVANNAH, Ga., January 27.—Rep- resentative Oscar E. Keller of Minne- sota, declared here today, he would continue his’ efforts to obtain im- peachment of Attorney General Daugherty on his return to Wash- ington. The Minnesota representative, who is here for a short rest, said he had no definite plans to announce at the time. S KILLED IN AUTO PLUNGE OFF BRIDGE Machine Crashes Through Rail and Drops 35 Feet Near Cumberiand. BODIES REMZIN IN CAR Accident Discovered by Autoist, Who Was Attracted to Ravine by Light. Special Dispatch to The Star. HAGERSTOWN, Md., January 27.— Five persons were killed some time during last night when the auto- mobile in which they: were driving crashed through the guard rail of the t ldge over Wills creek, on the National highway between Union- town, Pa., and Cumberland. . The Five Dead. The dead are: Mrs. Clara McCullough, Cumberland. Willlam J. Farrell, Cumberland. Miss Eva Dundee, nineteen years old, Cumberland. Miss Louise Dundee, years old, Cumberland. Edward A. Flynn, Hagerstown. Details of the acident ars missing and perhaps never will be learned, since all in the wrecked car were killed, and no other automobile was near when the car took the. fatal plunge. ‘Accident Discovered. The bodles were discovered about 'clock this morning by John Mor- risey, who came along in an auto- mobiie and was attracted to the scene by a faint light in the ravine under the bridge. Upon investigation he found the wrecked machine with the parking light still burning and the five crushed bodles still in the car. The automoblle had dropped thirty-five feet front“the bridge and was resting upright in the shallow water of the creek. Physicians said the accident h occurred fully ‘an hour before di covery of the bodies. The party had twenty-one attended a dance at Frostburg, Md, | and were on their way home. P S TWO 'EXECUTED IN ERIN. By the Assoctated Press. DUBLIN, January 27.—Two men, Joseph Bryne and Patrick Geraghty, ‘were executed at Maryborough to- ey had been found ity of un- lnle possession of nrm‘-.u v Just as the -day Closes —the. Star’s news-gathering ‘ organization makes a finat survey of the world of affairs—which appears in 3 N The Fnening Stas: ' 5:30Edition bFoq- ale by newsboys and PLAN T0 ABOLISH MAZE OF TRACKS Utilities Commission Consid- ers Project Affecj(ing New York Ave. and 14th St. TO RELIEVE CONGESTION Rails Would Be Spread Out Over H and 15th Streets and Provide Rerouting. Important changes in the layout of street car tracks In the downtown section of the city, with a view to improving service and relleving the traffic situation at 15th street and New York avenue, are under con- Sideration by the”: Public Utilities Commission, it was learned today. Thus far two schemes have been drafted, namely: To have the Capital Traction Com- pany lay double tracks on I street from 14th to 15th and south on 15th to the Treasury. To have the Washington Rallway and Electric Company extend its H street tracks west from 17th street to 19th street. This plan calls for double tracks as far as 18th street and single track to 19th street, where it would connect with the existing single track running south to Potomac Park. First Plan Favored. Engineer Commissioner Keller said today that the first plan regarding treatment of 14th street is being fa- vorably considered by the company, but the proposed H street plan has not yet been presented to the rall- way system. An outstanding featurs of advan- tage in the first scheme is that it would make possible the removal of two of the four sets of tracks now existing on New York avenue from 16th to 14th and on 14th from New York avenue to H street. The tentative plan contemplates the removal of the Washington Railway and Eleotric tracks on New York avenue and the turning over to that company of the Capital Traction tracks on New York avenue between 14th and 15th at a reasonable value. To Improve Rerouting. If this change is made it also would be possible to connéct the Washington Rallway and Electric line on New York avenue with the present Capital Trac- tion tracks running west from 15th street past the White House and Treas- ury. This, in turn, would make possible improved rerouting of cars. ‘It is understood to be the thought of the commission that such . cost changes should be made at the time that track renewals become necessai rather than immediately, thereby avoid- ing the loss that would result from the tearing up of tracks mot yet worn out or_in need of repair. The area from.15th street and New York avenue to 14th and H streets has developed into a pusziing traffic situa- tion, because of existence of four rows of tracks and a of switches, with . cars approaching from every direction. i Public Hearing Likely. The proposed changes, if carried out, would greatly improve transportation facilities to many government bulldings west of 15th street, it is belleved. It is probable that the Public Utili- ties Commission will hold & public hear- ing to thoroughly into the proposed track cfin‘l‘ before any definite de- cisions ‘are_reached. The committee appointed by the com- missioners to study existing traffic reg- ulations ay. s sutomblie pasbing sondtrions oo be & feature of the report. It is prob- able_ that 16th street will have o be Tridened if the car tracks are laid. MAIL CAR DERAILED. MAUCHCHU] Pa., Jan 27.—A to Philadelphia on the d shook up some .:orl The injured fireman ichchunk. He is | DELAY ON POLITICIANS; U. S. PLAN IS REVEALED 62-Year Pay Period Provided Averag- ing 4 Per Cent. BURDEN LIGHTER FOR FIRST 10 YEARS Program Offered Merely as Basis for Further Consideration. It was revealed today that the Am- erican Debt Funding Commission, in its recent negotiations with the Brit- ish delegation on a funding arrange- ment for Great Britain's debt to the United States, had suggested an in- terost rate of 3 per cent for the first ten years and 3% per cent thereafter, with provisions for,extinguishing the entire debt in sixty-two years. The suggestion included provision for stated annual payments and an amortization rate of one-half of 1 per cent, in addition to the yearly pay- ments on the principal. The yearly payments, {t was explained, were to increase as the amount of the in- terest decreased. The whole scheme, considered over the entire sixty-tw year period, would average a rate of approximately 4 per cent. It was officlally declared that these rates were only in the nature of a suggestion to the British representa- tives, but it was indicated that they probably constituted the nearest ap- proach to a settlement reached dur- ing the Washington negotiation The American delegation was witho authority to make a final proposal for a settlement, and administration spokesman said the sixty-two-year program was outlined to the British merely as a basis for consideration between the delegation and its home government. Attitude Not Revealed. There was no statement 'by offi- clals here as to the attitude taken toward this suggestion by the Brit- ish delegation. It was made clear that theé facts disclosed today did, not complete- ly cover the suggested program. Countless minor details, all having a direct bearing on the settlement, were included in the American sug- gestion, and if they are not ac- cepted by the British government changes in other features of the pro- gram may result. The amortization feature, described ifically as & series of payments from year to year, would have a direct bear- ing on the interest.zate should the Brit. ish government decline to accept the amounts ed by the American: The amoun not_disclosed, but the statement wa. made that should the terms be agr able otherwise, the total to be paid annually would work out on a basis making the interest rate only slightly below the provisions of the American debt funding law, ‘which calls for 4% per cent. The rate of interest named in the American. suggestion would be retro- active to the date the loans were made. D. C. AUDIT REPORT T0BE SPEEDED UP Senator Phipps Says Effort Will Be Made to Finish in February. Following a three-hour session of the joint congressional committee on the District of Columbia surplus rev- enues today, Senator Phipps, chair- man, announced that it was the pur- posé of the committee to complete its report if possible in time to submit it by the first Monday in February, the date fixed by law for making a re- port. Senator Phipps said that if this was not found to be possible an extension of time would be asked. It is under- stood that the committee will seek to make a report with recommendations as_to the District surplus. Senator Phipps said that if another audit is deemed necessary by the committee, of course the committee will not be able to make a final re- port, but an extension of time will be asked and a preliminary report filed. There is doubt, however, that another audit will now be under- n. The committee today considered the report of the expert accountants em- ployed by it to audit the accounts of the District from 1911 up to the present time. "It considered, too, the reports on this audit made by Maj. Donovan, the District auditor; H. J. Galway, rep- resenting the Department of Justice; Barl Taggart, representing the Treasury Department, and Edward F. Colladay, Tepresenting the citizens’ committee. It was decided to hold another meeting Monday morning. At this meeting Maj. Donovan, Mr. Galway, Mr. Taggart and Mr, Colladay will be requested to be present, and perhaps some others. The committee will question them in regard to certaln matters in the various reports, which the committee desires to have cleared 42 AUTOISTS JAILED. CLEVELAND, January 27. two automoblle speeders, the est number ever sentenced here one day, were glven workhouse sen- ten: and fined by Judge Samuel Silbert in municipal court. The sen- tences ranged from one to ten Many others received suspended ines of $25 to $50 and costs hile Judge Silbert was disposing of 210 cases, the largest traffic docket for the year, the county grand jury returned an indictment for K man- slaughter against Wiltred ' May, twenty, charged with running down Ellen Herbert, seventy-four 1y*New Year day. mile under his car. The death of Ralph Mcintyre, twenty-eight, sustained a broken neck when his auto crashed into a street car Wed- nesday, brought the 1923 trafic toll to eight Settlement Held Up by Congress, Is British View. EXECUTIVES AGREED, DECLARES FINANCIER Sees No Chance for Alter- native Plan to Get 0. K. Now. By the Associated Pres SOUTHAMPTON, January 27.—Stan- ley Baldwin, chancellor of the, ex- chequer, returning on the Olymple to- day from his debt mission to Wash- ington, told newspaper men that set- tlement of the debt question irn the United States was in the hands of 8. to be paid annually were |a Congress as the representatives of the people and that this situation consti- tuted the great difference batween America and England. Explaining that in America “you may have an executive which is will- ing to do a great deal for you, but cannot because of difficulties” en- countered in Congress, Mr, Baldwin said: n the early days the Secretary for the Treasury could undoubtedly have arranged terms with the British gov- ernment, but the situation now is complicated because the matter is in the hands of the American Congress. You are not settling in America with the cabinet at one end or with busi- ness men at the other. You are set- tling with Congress, which represents the people of America from one <nd of the country to the other. In England, if any terms are agreed on regarding the debt, the government takes ihe responsibility.” Must Reckon With Congress. “On the other hand, what the execu- tives in America have to do is to en- deavor to force anything of this sort through Congress, and in doing so they may be beaten.” The chancellor sald he wondered “whether the position which obtains regarding the debt is as clear in America as in this country.” Centinu- ing, he asserted: ““The great difference between ‘America and this country is that the settlement of the debt in Ameria is in the hands of politiclana. We are bound, in rd to that debt, in the most stringent bonds you £an possivly imagine.” Baldwin described Americans country, not an urban, people.” “They have men of our way of thinking in_ the ern state * he said, “but that does not cut any ice at ail with regard to the other parts of America. Sees Lack of Understanding. “If you look at the Senate. you will find that the majority of the mem- bers come from the agricultural and pastoral communities and they do not realize the existing position with re- gard to the meaning of the interna- tional debt. “The bulk of the people in America have no acquaintance with it. Great Britain lives on international trade, but in America this is not so. The people in the west merely sell wheat and hogs and other produce and take no further interest in connection with the international debt or interna- tional trade. “They are in very much the same frame of mind we used to be in re- garding reparations, when a large number of people in this country thought that Germany would send bags of gold every Saturday night until the money was paid up. A great many people in America think that all we have to do is send money over there. “The debt can only be funded on such terms as can be got through Congress, and that is the root of the difficulty with which we now are faced.” Not to Return to United States. Mr. Baldwin asserted that he might say more, but was obliged to discuss the question with the cabinet. Asked whether he would return to America, he sald: “1 should liks to do so, because I have been well received there, but I shall not be able to return, 1 have my own work to do at hom Mr. Baldwin said that uniess an ar- rangement was arrived at by which an agreement between the American debt funding commission and the British government was approved and ratified by Congress before March 4 the matter would be deferred until the end of the year. There was no chance, he sald, of mew proposals being put forward previous to March 4, because the funding commission in America had put forward the only proposals which were thought to have a chance of acceptance by Con- 5. m'-:l'hey have gone to the Iim they are likely to propose,” “If no agreement is come to now the whole thing falls to the ground,” Mr. Baldwin added. “The American commission was ap- pointed and closely tied up by Con- Eress—not given more favorable terms than those you are already familiar with. Those terms are per- fectly impossible, for they would mean that we would pay something like 6 per cent.” Sees No Better Terms. Mr. Baldwin said he belleved the American people thought they had been generous in their offer, but the English people did not take that view. “Unless Congress agrees to what the commission already has proposed we shall have to continue paying what we are paying now,” he went on. -“It 18 a matter of opinion whether it will be possible to find all this money for many years to come.” Mr. Baldwin intimated that unless the debt were funded Great Britain would continue pflylna’ 5 per cent in- terest. “We are pledged up to the hilt to pay it and also to pay back all the capital,” he said. Questioned by English corres dents whether a stage had b reached when according to the pres. ent outlook no better terms could be hoped for, Mr. Baldwin replied:, “Yes, I think that is so.” « On the commission’s terms of 3% . r_cent, Mr. Baldwin inted out (Continued on.Page 2, Column g it in what " he sald.