Internal-Revenue Service: Salaries and expenses of collectors, gaugers, storekeepers,etc. Mints and assay offices: New Orleans Mint..... Boise assay office..... Deadwood assay office (net).. Helena assay office (net)..... Total, mints and assay offices. Total decrease.. $288,000.00 1,500.00 1,200.00 200.00 100.00 3,000.00 291, 000.00 1, 466, 000. 00 Net increase. Amount of bill reported to Senate. 120, 272, 073. 81 Mr. McCUMBER, from the Committee on Finance, submitted the following REPORT. [To accompany H. R. 8762.] The Committee on Finance, to whom was referred the bill (H. R. 8762) to create a commission authorized under certain conditions to refund or convert obligations of foreign Governments owing to the United States of America, and for other purposes, having had the bill under consideration, reports favorably thereon with amendments, and, as amended, recommends that the bill do pass. THE BILL. Section 1 of the bill provides for the creation of a World War foreign debt commission. The commission is to consist of five members, one of whom shall be the Secretary of the Treasury, who shall serve as chairman. The other four members are to be appointed by the President, by and with the advice and consent of the Senate. The only change made in section 1 of the House bill is the requirement that all the members of the commission except the Secretary of the Treasury shall be confirmed by the Senate. The House bill required confirmation by the Senate of all members of the commission except Cabinet officers. Section 2 of the bill gives the commission, with the approval of the President, authority to refund or convert, and to extend the time of payment of the principal or the interest, or both, of any obligations of any foreign Government now owing to the United States, or any obligation of any foreign Government hereafter re S R-67-2-vol 1-10 ceived by the United States (including obligations held by the United States Grain Corporation, the War Department, the Navy Department, or the American Relief Administration), arising out of the World War, into bonds or other obligations of such foreign Government in substitution for those now or hereafter held by the United States. The section also provides that the obligations received under its provisions shall be in such form and of such terms, conditions, date or dates of maturity, and rate or rates of interest, and with such security, if any, as shall be deemed for the best interests of the United States. The section also imposes a limitation upon the power of the commission not contained in the House bill, by providing that the date of maturity of any bonds or obligations due the United States by any foreign Government shall not extend beyond June 15. 1947. Section 2 also authorizes the commission, with the approval of the President, to adjust and settle any and all claims, not now represented by bonds or obligations, which the United States now has or hereafter may have against any foreign Government and to accept securities therefor. Section 3 specifically states that no authority is given to cancel any part of the indebtedness of any foreign Government to the United States. Section 3 also specifically states that no authority is given to accept in substitution for existing indebtedness the obligations of countries other than the debtor countries. Section 4 limits the authority granted by this act to three years from its passage. Section 5 provides for the annual report of the commission. THE FINANCIAL CONDITION OF THE DEBTOR NATIONS. The necessity for the exercise of clemency in the matter of extension of the time of the payment of the principal and past-due interest becomes apparent the moment we survey the financial condition of the countries to whom we have made war advances. It must be remembered that some of these debtor nations were bearing the brunt of the conflict and devastation for three years before we entered the war and that the war burden bears much more heavily upon them. It must be further remembered that both France and Great Britain loaned enormous sums to their allies, the loans of the latter being about equal to the total amount loaned by the United States. The following tables show the national debts, population, and per capita indebtedness of the United Kingdom, France, United States, and Italy; the loans to foreign Governments by France; the loans by Great Britain to her allies and Dominions; and the principal and interest owing by Great Britain, France, Italy, and Belgium to the United States: National debts, population, and per capita indebtedness of the United Kingdom, France, United States, and Italy. National debts (converted at normal prewar value of the respective currencies): United Kingdom.. France.. United States.. Belgium.... $37,910, 000, 000 51, 000, 000, 000 23, 922, 000, 000 18,650, 000, 000 Loans to foreign Governments by France as of June 30, 1921. Czechoslovakia. 46,089,000 41, 476,000 105, 683, 000 36, 740,000 822.54 1, 229. 62 226.35 507.62 9, 450, 000 1, 158, 000 $2,500,000 208, 800, 000 213, 000, 000 1, 111, 000, 000 300, 000, 000 2,717, 888, 500 No interest rate has been agreed upon and no interest is being paid. Dominions: Loans to allies and Dominions by Great Britain, Mar. 31, 1921. Canada.. [Converted at 4.86.] Australia.. New Zealand. No information as to the rate of interest charged on the above loans. Principal and interest owing by Great Britain, France, Italy, and Belgium to the United Percentage of total indebtedness owing to the United States by Great Britain, France, Italy, and Belgium............ Percentage of total indebtedness owing by all other nations.. 94. 1 5.9 FOREIGN OBLIGATIONS. The Treasury holds $10,150,401,305.49 of obligations of foreign Governments, distributed as follows: Obligations of foreign Governments. Held for advances made under the various Liberty bond acts... $9, 434, 774, 829. 24 Received from the Secretary of War and from the Secretary of the Navy on account of sales of surplus war materials (act of July 9, 1918). Received from the American Relief Administration (act of Feb. 25, 1919).. Held by the United States Grain Corporation (act of Mar. 30, 1920)... Total.... 574, 673, 710. 21 84,093, 963. 55 56, 858, 802. 49 10, 150, 401, 305. 49 The interest accrued and unpaid up to and including the last interest period upon the obligations of foreign Governments and so-called governments held by the United States amounts to $1,178,879,925.88, and the amount of interest heretofore paid on such obligations is $478,863,632.99. (See appendix for obligations of foreign Governments and interest on such obligations, paid and accrued and unpaid.) NECESSITY FOR THE ENACTMENT OF THIS BILL. At the present time the Treasury Department has no authority to consent to any extension of the time for payment of the principal and interest of the debts of a number of the debtor nations, and in the case of those where the debts arose from advances out of the proceeds of Liberty loan bonds the authority is to a large extent restricted. At the present time the Treasury Department has no authority to refund, or to extend the time for the payment of the interest accrued and remaining unpaid on obligations of foreign Governments purchased by the Treasury under the Liberty bond acts, nor to refund, or convert, or to extend the time for the payment of the principal and interest due the United States under obligations of foreign |