Pospisil from Prague

Dr. Vilem Pospisil may pat himself on the chest. In three days in Washington he funded the debt of his country, Czecho-Slovakia. (Joseph Caillaux spent more than a week in Washington, but failed to reach a permanent debt-funding agreement between France and the U. S.)

To be sure Dr. Pospisil came to settle a debt of only 117 millions instead of 4 billions, but he had some special difficulties of his own --notably a disagreement over the principal sum. The Czecho-Slovakian debt was contracted after the War and comprised several items including purchase of War supplies, relief supplies, flour, cash ,advances, repatriation of Czech soldiers from Siberia.

On the U. S. books the principal of the debt stood at 91 millions with the accrued interest of 26 millions, making a total of 117 millions. The Czecho-Slovakian reckoning made the principal about 10 millions less.

Dr. Pospisil took a short cut. Said he: "As there are a number of disputed items between us as to the capital sum of the debt, we believe that, instead of entering upon the very large expense and delay involved on both sides by a reaccounting, we are prepared to yield on some considerable part of these items and to propose to you a round sum of settlement--that is, that we should consider the capital of the debt as at June 15, 1925, to be $115,000,000.

"If, on the other hand, your commission prefers, we are prepared to enter upon an accounting of these transactions and in this manner determine the capital."

"Done," answered the U. S. Debt Commission. There was no haggling over interest and terms. Summarily it was agreed that the Czechs shall have 62 years for payment, with 3% interest for ten years and 3 1/2% thereafter. They will pay 3 millions a year for 18 years and nearly 6 millions a year thereafter.

There was then only a formal agreement to be drawn up and Dr. Pospisil, smiling, was ready to go home to the depositors of his savings bank in Prague.