Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-11-28
DENY THAT DEBT
is S5,OOO,OOO,0OO
New York Bankers Take Ex-
ception to LIoyd-George's
Statement.

NEW YORK, Nov. 2S.-The state
ment of David Lloyd George, chancel-
Tor of the exchequer, in the House of
Commons, that the United States
owes Great Britain $4,000, 0O0, 900, with
the implication that the inability of
Great Britain to collect this debt
had tied up British business and
caused financial deadlock, was de-
cidedly resented in Wall Street yes
terday. 1t was said that Mr.. L oyd
George had been misquoted or that
he was misrepresenting the situa-
ton.
The point Immediately made by
financial authorities was that the
chancellor's statement was an esti
mate not of Indebtedness, but of the
investment of British capital in the
property and business of this
country.
That it is unfair to call such an
investment a debt on the part of this
country to Great Britain was the
position very decided y expressed by
American bankers, for the reason
that the bulk of this British money
is represented here In actual prop
erty, not by any means in mere
promise to pay on which Great
any given time in cash.
Total Now Much Reduced.
Opinions of American bankers diff
fered widely from that of Mr.. Lloyd
George. 1t was said by three of these
bankers that, although s5,000,OOO,0J
may have represented the maximum
investment of British capital at some
time in the past, this amount has
been considerably reduced. 1t was
estimated that the present investment
of British capital here is not more
than s3,60O,00O,0 900.
LONDON, Nov. 2s.-DaYid Lloyd
George, chancellor Of the exchequer,
announced in the House of Commons
that the 1850 600, 900 Isl, $50, 900, 000) war
loan has been greatly oVersubscribed
He did not give the figures, but said
that nearly 100000 individuals had ap-
piled for small allotments of the loan
and would receive the first considera-
ton.
The city, however, places the total
applications for the new loan of $780,
900, 000 Isl, $50 900 ,000) at 1865 600 900 ISL
S25, 000,0 00). These bonds are now
quoted in the market at par, plus
commissions.
AT the same time the chancellor
made a statement regarding the gem
eral financial condition of the empire.
The financial deadlock which fol-
lowed the outbreak of the war, he
said, was due to inability to collect
debts abroad, notably in the United
States, which owed Great Britain
about $1,000, 100000 Csc, 900, 900, 00O).
The British government, he con-
tinued, assumed responsibilities in
this war which no government ever
had been called upon for before, hav-
ing not only British business to
finance. but also the duties incum-
bent upon the empire as an essential
part of a machine that ran the in
IRRATIONAL trade of the world"
I'VE carried half the produce and
provided the capital that moved this
produce from one part of the world
to another, not only for ourselves,
but for other countries" he said.
He added that the financial paper
issued in London had become a part
of the currency of the world.
Into this fine, delicate paper ma
chinery crashed a great war, affect
ing two-thirds of the people of tho
whole world" he said. Confusion
was inevitable. 1t was as If vio-
lent kick had been given to an ant
hill. For a moment there was con-
fusion ana panic.
The British government, the chan
cellor went on, had hypothecated the
credit of the state to restore these
exchanges, upon which the COM
merce and industry depended, and by
the step the unimpeaehable character
of the British bill of exchange had
been maintained. so THAT no one
could say hereafter that in a day of
crisis this paper had been dishonored
The Bank of England he said. had
discounted E120, 900 $500, 900, 000) Of
bills At the same time, out of a
total of between E300,000,00O (S1, 500 000)
and $500 600, 900 81, 500 00O,0O0) of bills
out at the time of the outbreak OF
war, the greater part was disposed
of in the ordinary course.
$3.50, 100000 In Gold Storage"
Bills amounting to a total of EGO.
1886, 900 (s301 800, 000), he said, had ar
/ rived at maturity and money for
them had been found by the Bank OF
England. He estimated that f50,00O
! 900 $3.50, 900, 000) of bills would remain
| in "cold storage" until the end OF
/ the war, because of their belonging
to belligerent countries, or for Other
reasons.
The chancellor said that the great
accepting houses would not lose a
penny, and he estimated the total los.
/ on all these transactions would not
| equal the cost of carrying on the
war for a single week, while British
commerce and industry by this
means were being saved from
catastrophe