The Birmingham age-herald., 1918-11-22
FOREIGN DEBTS
 TO UNITED STATES
Rx HOLLAND


 New York, November 2l.-(Specialo The Secretary of the Treasury, William G. McAdoo, holds, as a cashier of a bank would hold, approximately $,000, 100000, presumably soon to be as much as s10,- 0O0,000000, in notes which our friends across the sea have given to him in evidence of their indebtedness to the United States government. Many per sons have wondered how the financing Of our credits of billions to our allies has been transacted; that is to say. what are the visible evidences of these ob- legations? They are made evident to the eye by the notes which foreign govern ments have given to MT. McAdoo, as head of the treasury department, in rec ognition of the obligations of these gov ernments to the United States for credits and loans.
 It is not of common knowledge that when ultimate settlement is made various offsets against these foreign obligations will be entered upon the open ledger which is now the only form of book keeping which contains the story of these transactions. It is not possible or permissible, perhaps. to make report of the actual amount the United States owes Great Britain for transporting American soldiers to England and France. The greater number of these soldiers were ferried across the sea in English ships conveyed by English vessels, and many may be brought back in English vessels. It is believed in the financial district that our government obligated itself to pay to Great Britain $65 for every soldier transported to Europe in an English vessel. How many were in that way carried across the sea no one but the government authorities at Wash ington know. But presumably much the greater part of 100000 soldiers we sent to France were taken in English ves- sells. That charge is now terminated. for we are to transport no more soldiers to Europe, although an additional charge for the return of soldiers may be made The aggregate, however, must amount to a good many million dollars.
 WE BOUGHT IN EUROPE
 Then again, the United States has been a heavy purchaser of supplies of various kinds and certain munitions of war in Great Britain and in France, and we are to pay France for the use by our sol diers of her railroads and motors. These purchases will serve in some measure to offset the debt which Great Britain and France owe to us. Nevertheless the az gregate of our indebtedness to these nations on account of transportation or troops and the purchase of supplies must be very small sum in comparison with the total obligations these nations have incurred in the United States.
 By and by when it is possible to close the ledger and to strike balance then these obligations of ours incurred Tn England, France and to some extent m Italy, will be charged up against the obligations these nations owe 10 the United States. In that way true pal ance will be reached.
 FOREIGN BONDS COMING
 When this is done then it will be pos sible to close the ledger, for these debts will assume a new form. Great Britain, France and Italy will take up the notes which they have given to represent their obligations to us by sending to us gov ernment bonds. These bonds will bear interest at an agreed rate so that in exchange for the notes the treasury de- partment will have in'its possession some where near s10.0Oo. .oO00oo in bonds issued by England, France and Italy.
 Belgium will have no offset for the 1 loans that nation kas secured in the United States. We have not been able to buy anything in Belgium because l that nation has had nothing to sell to | us. Her national bonds, hov'svcr. Saii1 | be esteemed by MT. McAdoo sad ey th country as excellent security Ter np loans we have made to Belgiua
 ! England has notified our ssvernuisat that hereafter she, will need no naw | credits from the United State pp fer l own account. She will, howe*eg ss.* assistance of this kind in ordcs i9 s&@- cor those of our allies who. hs iss to England in part for suppot Flgsas