The Washington herald., 1918-11-22
ALLIES OWE US.
TEN BILLIONS
Notes May Be Exchanged
for Foreign Boards,
Says Holland.


cashier of a bank would hold. ap-
proximstely $4,000. 900. 900. presum-
ably soon to be as much as slO.-
OeO,eoo, 900, in notes which our
friends across the sea have given
10 him in evidence Of their indebt-
edness TO the United States govern
ment. Many persons have wonder
ed how the financing OF our credits
Of billions to our allies has been
o transacted: that is to say what are
the visible evidences of these OBJ
legations. They are made evident
to the eye by the notes which for
eign governments have given to Mr..
McAdoo. as head of the Treasury
Department. in recognition of the
obligations OF these governments to
the United States for credits and
loans
II 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 bookkeeping
which contains the story of these
transactions. II is not possible or
permissible. perhaps. to make re-
port Of the actual amount the United
states owes AuTedJ bTlldln lot Trans
porting American soldiers to Eng
land and France. The greater num-
ber of these soldiers were ferried
across the sea in English ships con-
voyed by English vessels. and many
may be brought back in English
vessels
It il believed in the financial dis
itrict that our government obli-
gated itself to pay to Great Britain
's65 for every soldier transported to
Europe in an English vessel How
many were in that way carried
across the sea no one but the gov
eminent authorities at Washington
know. But presumably much the
greater part Of the 1000, 900 soldiers
we sent to France were taken in
English vessels. The charge is now
terminated. for we are to transport
no more soldiers to Europe. al
though an additional charge for the
return of soldiers may he 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 NUM-
tions OF war in Great Britain and in
France and We are to pay Franct
for the use by our soldiers of her
railroads and motors. These pUr-
chsses will serve in some measure to
offset the debt which Great Britain
and France owe to US. Nevertheless
the aggregate of our Indebtedness to
these nations on account of transpor-
tation Of troops and the purchase OF
supplies must be a very small sum
IN comparison with the total Obliga-
tons these nations have incurred in
the United States
By and BY when it is possible to
close the ledger and to strike a bal
ancer then these obligations OF ours
Incurred m England. France and to
some extent in Italy. will be charged
Up against the obligations these ma
tons owe to the United States. In
that way a true balance will oe
reached.
Foreign Bonds Coming.
When this is done then it will be
possible to close the ledger for these
debts will assume new form.
Great Britain. France and Italy will
take up the notes which they hive
given to represent their obligations
to US by sending to US government
bonds. These bonds will bear in
terest at an agreed rate so that in
exchange for the notes the Treas
ury Department will have in its pos
session somewhere near $4,000. 900. =
900 in bonds issued by England.
France and Italy.
Belgium will have no Offset for
the loans that nation has secured in
the United States. We have not
been able to buy anything in BEL
gium because that nation has had
nothing to sell to us. Her national
bonds. however. will be esteemed by
Mr.. McAdoo and BY the country as
excellent security for the loans we
have made to Belgium.
England has notified our govern
ment that hereafter she will need
no new credits from the United
States on her own account. She
will. however. need assistance Of
this kind in order to succor those
OF our allies who have turned to
EngIa nd in part for support There
fore il is presumed that in due time
Secretary McAdOO may make an
other credit to Great Britain, not
because Great Britain needs the
money herself. for she is now abun-
dantIy able to finance her own. ne
cessities. but because she will need
assistance in financing some OF the
obligations of those Of our allies
who turn to her for aid.
$500 900 900 in Interest.
1t may be two OF three years before
the great ledger in the Treasury De-
partment which contains the record
Of our loans and also the record of
our obligations to England, France
and Italy will be closed, after the
balance has been struck and the
European governments which have
borrowed here take up the notes with
national bonds. These bonds will be
looked upon as an investment by the
United states in the national and IN
impeachable securities issued by Eng
land. France and Italy.
They will represent by many hun
sdred millions, even by billions, a
greater aggregate OF obligations than
ANY in which the United States or
any other country has ever hereto
fore made investment. They will
yield yearly interest which may
amount to as much as FIVE hundred
million dollars. and this interest.
there is no doubt. will be promptly
paid. The bonds themselves may
have a long term. although that is
something to be determined when
final sc ettlemcnt is made.
Out OF the taxes amounting to bill
lions and the loans amounting to
other billions which the war has made
II necessary for this government to
%