ALLIES WAR DEBT TO AMERICA

Dominion, Volume 14, Issue 180, 26 April 1921, Page 7

ALLIES WAR DEBT TO AMERICA

"CANCELLATION WORTH WHILE."

Mr. Festus J. Wade, president of the ffiercantile Trust Company, of St. Louis, Missouri, who was chairman, of the Committee of Five representing the American Bankers’ Association at tho Paris meeting of the International Chamher of Commerce, wrote recently in “The Landmark,” the monthly publication of •the English-Speaking Union, an article in favour of the cancellation of the Allies’ debt to America. He was forced to the conclusion, he said, that the United States had not done its full duty to its allies since the armistice, and he explained some of the facts for the benefit of his countrymen. The war had cost the United States about one-eighth of the total cost of all the nations of the world. Europe,, on the other hand, had lost the earning power of at least 12,000,000 men; while the United States had lost that of less than 200,000. Calculating the earning power per man in Europe and America for the next 15 years, Mr. Wade estimated that while Europe’s total debt, together with that loss of earning power, was about .£71,000,000,000, that of the United States was only JJ6,200,000,000. The European loss was complete. There is nothing to show for it—no gain whatever. The United States, on the other hand, paid off practically all its European obligations by the purchase of securities owned in Europe, and increased its wealth by all that the war cost, Including the estimated lose of manpower for 15 years. America’s best customers being tremendously in debt to her, while she had suffered, relatively speaking, no loss, would it not be prudent, Mr. Wade asked, simply as a busi- # ness proposition to cancel the entire European debt ? Ho would do that on condition that the countries which benefited by the cancellation should themselves cancel the loans they had made to their weaker allies, and that the European countries should agree to restore foreign exchange for a period of five years at approximately its normal value. This, Mr. Wade agreed, could be-done. just as the pound sterling was maintained during the war lit between 4dol. 70c. and Idol. 7g c — nn effort which, costly as it appeared to lie to the British and French Governments, was really well worth their while, as they saved the heavy discount on their credit borrowing which they would have had to pay if the. exchange had been allowed to go unchecked. In conclusion, Mr. Wade wrote: "I cannot emphasise too strongly that I want ti put tho cancellation of the debt e« tlrelv on a business basis, aside from any 'sentiment, philanthropby. or charity” adding that such action would prove to the world that the people ot the United States do not want war and that the friendships it would rrMte throughout the world would be worth much more than the debt cancelled.