World War Foreign Debts Commission Act

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World War Foreign Debts Commission Act
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Long titleAn Act to create a commission authorized under certain conditions to refund or convert obligations of foreign Governments held by the United States of America, and for other purposes.
NicknamesWorld War Foreign Debts Commission Act of 1922
Enacted bythe 67th United States Congress
Citations
Public law Pub. L.   67–139
Statutes at Large 42  Stat.   363, Chap. 47
Legislative history
  • Introduced in the House as H.R. 8762 by Joseph W. Fordney (RMI)
  • Passed the House on October 24, 1921 (200-117)
  • Passed the Senate on January 31, 1922 (39-26)
  • Agreed to by the House on February 3, 1922 (299-27)  
  • Signed into law by President Warren G. Harding on February 9, 1922
Major amendments

World War Foreign Debts Commission Act is a United States statute authorized February 9, 1922 endorsing a commission, working under Secretary of the Treasury Andrew Mellon, to negotiate repayment agreements with Great Britain and France in the aftermath of World War I. [1]

Contents

First meeting of the World War Foreign Debt Commission (April 18, 1922) World War Foreign Debt Commission, 4-18-22 LCCN2016846324.jpg
First meeting of the World War Foreign Debt Commission (April 18, 1922)

The Commission placed the Allied debt principal to the United States at $11 billion; payments were to be made in graduated 62 annual installments; however, the accrued interest on these payments over a period of 62 years would have increased the debt to approximately $22 billion, although the U.S. did agree to lowered interest rates. Great Britain's debt was reduced 19.7% to $4.6 billion with the interest rate reduced from 5% to 3% for the first ten years of payment to be raised to 3½% thereafter. France's debt was reduced by 52.8% to $4 billion, without any interest for the first five years of payment. It was then to be increased gradually to 3½%.

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References

  1. Wood, Robert (1986). From Marshall Plan to Debt Crisis: Foreign Aid and Development Choices in the World Economy. University of California Press.

See also

Bibliography

U.S. Presidential Statements Concerning Foreign War Debt