Evening star., 1919-03-23

accruing balance against her? Ask
any exchange banker and he will tell
you that It cannot be done unless we
lend n9,rcns credit TOR or that purpose"
eleven billion dollars in the United
States. The yearly interest on this
debt amounts to $500,000.000. The ii-
terest cannot be paid in gold. because,
as Mr.. Roberts explains. the ''totai
side of the United States in 1918 was
only about $500. .000." The United
States consequently, either must con-
tinue to extend credit to debtor ma
tions or must purchase enormous
quantities of goods from those ma
bought in Europe would displace
goods that could be made in the
United States, to the serious injury Of
American manufacturers and Ameri-
can wage-earners.
The French. before the war, had
least to $4,000. 900, 600. what has
become Of that fortune?" asks
Georges Clemenceau. premier of
France 1.-THE best that we can hope
for. he says, "is that payments on
about two-thirds of it may be con-
sldered as simply deferred: that the
immense sum accumulated by French
thrift and loaned abroad will be COL
lectible eventually"
France also sent $4.000,0 900. 900
into Russia and owns today more
ment securities. Great sums Of
French MONEY are tied up in the
obligations of Turkey and the Bal.
kans French investors have put
half a billion dollars into Mexican
enterprises.
Everywhere. on the face of things.
there is poverty-everywher except
in the United States and Japan.
America" said Secretary Glass. sis
least injured OF any of the nations
which took part in the death grapple
with autocracy on the soil Of France
the nation is richer and stronger
than it was before we went to war"
"A debt of nation that Is owed
to another nation drains money from
one nation to the other. Interest
tually the debt must be liquidated In
full. Great Britain and France have
borrowed heavily in the United
States-from the American govern
ment itself and from banking gym
dicates. The interest on these loans,
however paid, reduces to its face the
amount of money that can be spent
at home. Mr.. Roberts. to repeat. es-
Inmates the sum OF the interest that
must be sent to the United States to
be $500, 100000 a year.
~ Will SoHc, pTIHcipaIys from
Great Britain, France and. Italy and
will still further help to enrich the
people Of this country for the reason
that 1t will be spent here in one man
ner or another. Money is not locked
up in bank vaults. but y put to work
and kept at work seven days in the
week
On every cent Of which interest
must be paid semi-annually Mr..
Roberts, again to repeat. says the In.
terest will total $500, ,060.0 yearly.
which in itself Is huge inflow Of
wealth.
The purpose of the writer at the be-
ginning of this article was to show
how goods made in the United States
and sold In foreign markets could be
paid for by the purchasers. They
will not be traded for other goods, ex-
not be paid for in cash Therefore,
they will have to be sold on time and,
perhaps. on long time at that.
six months pass" Mr.. Harding said,
between the day that a Georgia
farmer sells his cotton and the Mas
sachusetts spinner buys the cotton
be fore the money OF the ultimate con-
sumer becomes available. All along
the course Of the raw cotton to its
manufactured state credit must be
given and taken"
This credit operation is common In
all lines. here at home. 1t will have
to include Europe. II the American
people are to prosper as they should
during the readjustins days that are
to conte.
copyright. 1919, by Jsmes r. Morrow.)