Another Settlement

The U. S. Debt Funding Commission announced an agreement for settling another debt. This time it is with Roumania, and the principal involved is small change as compared with the British, French or Italian debt. The original loans amounted to $36,000,000 which with interest accumulated to last June is $44,590,000.

Payments are to be made on the now standard plan--over 62 years, with 3% interest for ten years and 3 1/2% thereafter. A partial moratorium is, however, provided, so that the payment for 1926 is only $200,000 and successive payments increase gradually to $2,200,000 in 1939.

It took a good many days to arrive at this agreement, although there was little question of Roumania's ability to meet the payments, and the Roumanian commissioners were evidently instructed to accept whatever were the best terms that the U. S. had to offer.

The Roumanians pressed for very easy payments at first because of the tangled state of their finances and the debt payments to other countries which they have to make. But compromise followed where the will-to-agree walked before.