# The Czechoslovak Review/Volume 4/Foreign Debts of the Republic

Foreign Debts of the Republic
Minister of finance, Kuneš Sonntag, made a statement to the budget committee of the National Assembly on December 11 as to the foreign indebtedness of the Czechoslovak Republic.
The first loan of the state was made in America. On November 15, 1918, President Masaryk was granted a credit by the United States Government of seven million dollars for the equipment of the Siberian army. Of this credit six million has been used and one million is available for the transport home of the Siberian army. Further loans were made in the United States as follows: ten million dollars on January 13, 1919, 18 million on March 3, 6,330,000 on April 8, 9 million on May 22 and 5 million on June 28. This total indebtedness of over 54 million dollars bears five percent interest, a very advantageous rate. Interest is payable in the same way as in ordinary loans, but the time when the loan is payable is not formally set. According to oral agreement America will not ask for repayment before four years.
Distinct from the loan closed at Washington is the credit of $19,500,000 which was used for the purchase of food and supplies from the American stores in France; the obligation was signed by minister Beneš. A third loan is for six million dollars for the purchase of American food, payable June 30, 1921; this was negotiated directly between the ministry of finance and the American Food Administration. No statement has yet been given to us and no obligation was signed as yet, nor was interest paid so far. That is why this particular credit has not yet been formally laid before the National Assembly for its approval.
From France we received a loan of 110 million francs at five percent interest; this is to be repaid in July of next year. This money was applied for the purchase of war material; the obligation on behalf of our government was signed by minister Beneš.
In Italy we contracted a loan of 120 million liras for the equipment of the legions which fought on the Italian side. Interest and term have not been determined. The other loan of 20 million liras was secured by private firms for the purchase of textile goods, but the state guarantees its payment.
The minister then referred to certain other topics coming within the scope of his department. The Czechoslovak Republic started out without any reserve of precious metal. An appeal was made to the people in spring of 1919 to turn in their gold and silver coins and ornaments.—This campaign is still going on, and it has brought in so far 20 million crowns worth of gold and 100 millions worth of silver. This is increased by silver mined in Příbram of which only a small part is released for industrial purposes.
The foreign exchange central is to be abolished and its functions transferred to the banking bureau of the ministry of finance. It is the plan of the goverment to establish as soon as possible a state bank of issue, based on a reserve of hard metal, an active balance and the confidence of foreign states.
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