BRITAIN'S DEBT TO U.S.

New Zealand Herald, Volume LX, Issue 18300, 17 January 1923, Page 9

BRITAIN'S DEBT TO U.S.

FIXING THE INTEREST.

THREE PER CENT. TOO LOW.

Australian ard N.Z. Cable Association. (Reed. 9.A5 p.m.) WASHINGTON. Jan. 15.

The debt funding conferences have been suspended in order that the British Commission may consult the British Government and report again to tho American Commission to-morrow.

The American Commission informed the British that it is opposed to fixing the rate of interest as low as 3 per cent., but it is prepared to accept a maturing period of 50 to 60 years. The British declared they were willing to make arrangements for simultaneous payments of principal and interest.

The Bankers' Trust Company, of Nt-*. York, has obtained through ft? English information service, authentic figures, giving in detail the expenditures made in the United States by the British Government during the period in yrhich loans were made to Great Britain .by the United States Government. In brief the figures show that while the total casli advances of the United States to Great Britain amounted to 4,277,000,000 dollars, the British Government expended in the United States during the same time the suin of 7,220,000,000 dollars; that was 2,943,000,000 dollars more than the total amount lent to Great Britain. The items upon which these British expenditures were made in the United States were as follows (April, 1917, to November, 1920): — Dollars. Purchases of munitions (including horses, etc.) , . . 1,536,000,000 Cction purchased, cereals purchased (to July, 1917), and bills of exchange bought to meet expenditures in U.S. . . 1,683,000,000 Payments for cereals after July, 1917 1,375,000,000 Purchases of other foods . • 1,169,000,000 Tobacco purchased . . . . 99,000,000 Paid for other supplies , . ' 215,000,000 Payments for shipping . . . . 49,000,000 Interest paid to U.S. Treasury 388,000,000 .Repayment of loans raised in the United States . . . . 353,000,000 Puichases of silver . . . . . 262,000,000 Paid in miscellaneous ways . . 91,000,000

7,220,000.000

A number of the above purchases, notably cereals, sugar, and munitions, were made by the British Government for other Allied Governments, and those Governments subsequently repaid Great Britain 1,854,000,000 "dollars. However, after deducting these repayments, the net expenditures by Great Britain in the United States for British purposes were 5,366,000,000 dollars, or above 1,000,000,000 dollars more than was lent to the British Government by the United States. h, The above expenditures were provided for as follows (April, 1917, to November, 1920) Dollai-B. Dollars. Loans by U.S. Treasury (net, after deducting repayments) 4,197,000,000 Dollars paid by U.S. Government to British Government for .Berlins; recuired to make n payments in England . . 449,090,000 Dollars paid to British Government for rupees and gold from India sold to U.S. Treas- g^^ Money raised by the British Gov™,,. Iron, _ _ otto 5,366,000,000

The final item includes any payments to Great Britain for services . rendered, such as transportation of troops, etc., which the United States made in dollars in America, together with such sums as the British Government amassed from interest on or sales of American securities owned by it, shipments of gold and other exports, and so forth.