World War Foreign Debt Commission, 4-18-22 LCCN2016846324

The United States federal World War Foreign Debts Commission Act of February 9, 1922 authorized the creation of a commission, working under Secretary of the Treasury

Andrew Mellon Andrew William Mellon (; March 24, 1855 – August 26, 1937), sometimes A. W. Mellon, was an American banker, businessman, industrialist, philanthropist, art collector, and politician. From the wealthy Mellon family of Pittsburgh, Pennsylva ...

, to negotiate repayment agreements with

Great Britain Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe. With an area of , it is the largest of the British Isles, the largest European island and the ninth-largest island in the world. It is ...

and

France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...

in the aftermath of

World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...

. 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 An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...

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%.

References

1922 in American law United States federal legislation Report of the World War Foreign Debt Commission, May 2, 1923 https://www.finance.senate.gov/imo/media/doc/68PrtSDOC23.pdf Negotiations on behalf of the World War Foreign Debt Commission for the settlement or refunding of debts owed the United States by foreign governments (Documents 116-143) https://history.state.gov/historicaldocuments/frus1922v01/ch3 Combined Annual Reports of the World War Foreign Debt Commission with Additional Information Regarding Foreign Debts Due the United States: Fiscal Years 1922, 1923, 1924, 1925 and 1926 https://books.google.com/books/about/Combined_Annual_Reports_of_the_World_War.html?id=6ovPAAAAMAAJ Foreign Indebtedness to the United States, Committee on Finance, US Senate, October 29, 1973 https://www.finance.senate.gov/imo/media/doc/foreign1.pdf Complications for the United States from International Credits: 1913 -1940, George J. Hall Thomas J. Sargent, June 18, 2019 http://www.tomsargent.com/research/IMF_final.pdf {{US-law-stub P.L. 67-139; 42 Stat.363, February 9, 1922 – Established the Commission; five members P.L. 67-445, 42 Stat. 1325, February 28, 1923 – Increased membership to eight P.L. 67-327; 43 Stat. 763, January 21, 1925 – Extended life of Commission for two more years