The Washington herald., 1918-11-09
LIQUIDATION OF
DEBT PROBLEM
u. S. Greatest Creditor "a
ton in World, Says
Holland.

F.
his recent address. set forth his
estimate OF the amount which We
owed to Europe just before the war
began. $4,000. .Oe0. 600. and on The
other hand speak OF the loans. pri-
vate and governmental which wet
have made TO our friends across the
sea-new approximately 5000 .soO.
eOO-slmply for the purpose. of
gratifying natural curiosity. HIS
purpose WIS Of the highest import
ance because one Of the immediate
problems which will be offered for
solution after the war IL ended will
u satisfactorily solved show how
this stupendous indebtedness TO the .
United States can be in due course p.
liquidsted.
The liquidation must be accom- ]
plished without interfering with :
the development Of international .
, trade. II is even desirable that .
the allies export to the United
States as great an aggregate of r
commodities as Is possible These,
however, will not. for some years,
do more than partially to liduidste
the obligations incurred By Europe
when IL buys American Commodi--
ties such as food raw material.
electrical equipment which are
needed for the reconstruction OF
the industrial enterprises. sspe-
cially in Belgium and France, and
to some extent in Italy
Mr.. Lamont. as chairman OF the
Foreign Securities organization. So
called. is expected TO give as much
Of his time as possible. aided by a
committee which he expects 70 ap-
point, to a careful study Of financial
and other conditions IN the couu-
tries which owe Us this enormous
. amount OF money so that the commit
tee may be in position 10 pass judg-
nent upon thu securities which u a.
expected will be offered 10 the peonle-
OF the United States by foreign gov.
errments. by railroads and by cor
porations.
1nNestments Exceed. Debt.
There Is no official publication which
sets forth the amount Of foreign So
Curitiss which were held In Great
Britain at the beginning Of the var
/ Henry =. Dawson. who had In 1915
an opportunity OF learning some things
which were associated with the fu-
( Vestment or English CAPITAL m for
elgn securities. spoke upon his re-
turn OF the aggregate ss enormous
but he did not think that he was fus-
Ihed IN stating ia figures all that
he had learned Bot the prpsurrD-
tion is that Great Rritsir's ipvesf-
meni ia foreign securities was moi
equal at the beginning Of the war 10
the aggregate Of the indebtedness
/ which our allies now owe 20 the
] ! hlled Siates-CortRiuly not 10 tn.
/ amount which will be owed to Us 8,y
The end Of the year 1879
iheretore It Is rcasona hlD % assume
A that within four years the I-nitsg
states has not only liuriGated for
eIgn debt oT SsuF.rG010 hut has an
addition lent SO much money To our
allies as to justify the statement thar
/ this country Is now the greatest cred -.
/ itor nation In the world and IS sure
TO remain in that position FOR ~on..
h'lhaps many. wears after the war Is
ended
d Nevertheless II Is essential that This
I foreign debt o." Hguidated. ami an
. larently Mr.. Lamont and his asso-
'lates are gniisfed that one Of IN,
. best. because the surrst and most sat.
isfactory. means Of Iiluidating ID S-5ls
B be through the absorption by the
. American people oT vast amounts "
foreign securities which will he sent
here Immediately after peace has
come.
Allies owe billions.
Whether We shall be able 10 absorb
as many securities As represent IN
. their Psr value On the aggregate Il,s
ten billions or twelve billions vBfSI
our allies owe 10 us is a question
But with men Of whom Mr Lamont
Us the typo, p'rhgns the best t,-pp wr,
will make effort 10 obtain accurate
! aud exhaustive information rcsraytinr
| nna0CIH. 1u3 other conditions in The
b countries which are our debtors ana
v'ro by experience are qualified IN
sCrutiniZo every kind OF security that
is Off ed and 10 make reports nased
up IN iH,' scrutiny. active as advssols-
there is no doubt that the United.
Sta''s VIII no able TO absorb 4 vs Il
amount or European securities
This is one Cf the lessons which The
successful floating OF the four Lin.
orty Loan bonds has taught Before
the United states entered the war
II WAS impossible to conceive OF the
. American people beroming Of q sud-
den investors in billions OF bonds.
Within a wear the prorIp learned
what wise Investment means. how %
. encourages thrift and what the ad-
Nanta ges are Ia converting some pno=
portion OF savings or incomes into
bonds or other securities That les
son will. Mr.. Lamont believes. make
II all the more easy to persuade the
American people 20 make Investment
in foreign securities. For the gov
ernment will no longer fnd Il neCes-
sary to ask the people for further
loans There may he two more loans
but probably the last of the Liberty
Loans win he fosted in the fan OF
1913.
A. our government will not find t
necessary to call upon the people
for further contributions. excepting
in the form Of taxes. the people,
having learned tho lesson which Wis
investment teaches. will be disposed
to invest their surplus not only W
high grade American seCurities but
also IN tho~S which will be offered
i'm this country.
FORTUNE tely we UOSseSs an asset of
ihpstina HE value in aiding the hota-
tion Of foreign securities whiCh have
passed the scrutiny Of competent
men. That asset is a liquid, free and
impersonal market such as New York
Stock ENrh71Rc IS. HOLLAND"