INTER-ALLIED DEBTS.

Timaru Herald, Volume XCVIII, Issue 18084, 11 August 1924, Page 8

INTER-ALLIED DEBTS.

Some months ago, Dr, frank Bolin, dec I a mil that although Britain's war debt was iooKed Upon as sot t led--1 hat is a “sutisiiictoty arrangement.” had been made to pay during the next sixl t \ yours —witii many Americans, tho adage, still holds: “.Nolhing m settled utit.il it. is settled right,.’ and tho only wav “settlement.’ of t,]iat. debt. Dr. Bolin added, is to cross it off and forget, it. 'The Allied war indebtedness forms, for Europe, one. of the most difficult problems in the whole com plicated process ol: international construction. Since the Armistice, if lias perplexed and cmha t rassed almost everybody who lias had m')Y official conncciion with, it, either as debtor or luediior. 1 ho total volume of Julei-Allied

indebtedness is roundly foui thousand million sterling. r l he United States Government lent nearly half that sum; Britain borrowed about F850,000,00U from America and lent double that amount to her Allies; France borrowed about FI, 100,000,000 from America and Britain, aud lent about F‘875,000,000 to other Allies. The latter have been borrowers only. Following is a summary of Allied debts due to Britain: £ Dominions 15u,432,000 Allies 1,834,000,000 Relief Loans (Europe) . 21,20,0000 Belgian Reconstruction . 9,000,000 Other Loans 2,829,000 £2,017,461,000 The Belgian debt to Britain of FiUB,4£.L,J.y2 was taken over by Orermany; otherwise, no attempt has been made by the Allies to discharge their indebtedness to Britain. According to recent calculations tlie dolus due to the United States Government amounted to 11,329,606,060 dollars. Bractically all the advances bear interest at 5 per cent,, and some 1,178,01)0, UUU dollars of unpaid interest is being added to the principal indebtedness. Details of the Allied indebtedness to the United States are as follow: £ Belgium 09,538,313 Czecho-Slovakia 12,261,241 Franco 590,152,687 Great Britain 833,203,071 Greece 3,000,000 Italy 329,006,810 Rumania 4,051,163 Russia , 37,545,950 Serbia ... 5,235,027 £1,885,244,762 Long ago Britain sounded tnu uniteu o cates witn a proposal than mere snould be a general conceilauon oi lnter-muiea luueoieuuess. The worsnippers ox cue .almighty Hollar scorned the idea* They nave Britain's undertaKing that her indebtedness to the United {States will be repaid in o£ years with interest, the capital sum the Amen cans will receive unless cancellation is agreed to, is 4,bUU,UUO,UUU dollars or more than double the total sum the United States loaned to the Allies. American financiers know, of course, that Britain has very little chance of being repaid by her impoverished Allies, but Britain’s word to America is her bond, and she must pay ah annuity of 151,1)00,000 dollars foi ten years, and an annuity varying* between 179,000,000 and 18(,000,000 dollars for 52 year's and averaging about 180,000,000. l J.'he principal will then have been paid off and the payment on account of interest will aggregate 6,505,965,000 dollars, making' altogether a total payment oi 11,105,965,000 dollars in respect of the initial debt of 4,600,000,000 dollars! And yet the people of the United States boast that they bore their full share of the burden of the war! Moreover, while there was likelihood of complication in the negotiations to bring about the return of economic peace and financial stability to impoverished Europe, the United States pldyed the part of onlooker. Now that the question of Inter-Allied indebtedness is coming up for discussion, Washington officialdom has announced that the Dinted States will be officially represented! When humanity is concerned, the United States ‘is fearful of the complications likely to arise irom active participation in the Allied negotiations ; where the Almighty Dollar is involved, the United States is the first to announce that her interests will be officially represented when the Conference deliberates!