PrRopPOsAL dated the 18th day of June, 1923, by His
Britannic Majesty’s Government (hereinafter called
Great Britain) to the Government of the United
States of America (hereinafter called the United
States) regarding the funding of the debt of Great
Britain to the United States.
WHEREAS Great Britain is indebted to the United States as
of 15th December, 1922, upon demand obligations in the princi-
pal amount of $4,074,818,358.44, not including obligations in the
principal amount of $61,000,000, representing advances deemed
to have been made to cover purchases of silver under the Act
of Congress approved 23rd April, 1918, of which $30,500,000 has
been repaid in April and May, 1923, and the balance is to be repaid
in 1924 pursuant to an agreement already made between
the parties, and Great Britain is further indebted to the United
States as of 15th December, 1922, on account of interest accrued
from 15th April and 15th May, 1919, on said $4.074.818.358.44,
principal amount of demand obligations.
AND WHEREAS Great Britain has power under the War Loan
Act, 1919 (2 and 10 Geo. 5, cap. 37) to issue securities in exchange
for maturing securities issued under the War Loan Acts. 1914 to
1918 :
AND WHEREAS the demand obligations now held by the
United States Treasury were so issued, and will become payable
npon the request of the United States Treasury for their payment :
Now THEREFORE Great Britain proposes, in the exercise of the
powers above recited and in consideration and in faith of the
statements, conditions, premises and mutual covenants herein
contained, to issue to the United States in exchange for the
demand obligations now held by the United States Treasury
securities which shall be in their terms and conditions in
accordance with the following provisions -—
1. Amount of Indebtedness.
The total amount of indebtedness to be funded is
$4,600,000,000 which has been computed as follows :—
Principal amount of de-
mand obligations to be
funded L
Interest accrued thereon
from April 15 and
May 15, 1919, respec-
tively to December 15,
1922, at the rate of
42 per cent. per
INH
£629 836.106.99
