The Bridgeport times and evening farmer., 1919-09-19

European Allies are ample to enable them not only to meet all war obliga- tions, but regain their normal position in the worlds business as we'll is brought forth in the illustrated book let, The SoIvency of the AIIies,'' = comprehensive survey of European financial conditions just published by the Guarnty Trust Company of New Yo=k. The booklet presents an inn partial analysis of the war debts-in- ternal and external-of Great Britain, France, Belgium and Italy; an es- peciaIly vital subject in this country, since our own Government is the largest creditor of the Allies.
 In introduction, the booklet says in part:
 The larger portion of the war debt of the Allies is internal The ability to meet an internal debt is purely a fiscal problem, because there are no additions or subtractions to the na- tiOnal wealth and the payment of in terest on the debt implies the tatXa- ton of the people as a whole, interest being paid to present holders of the bonds, which effects only a partial re- distribution of the national wealth.
 ''The problem of meeting external
 
 national wealth of the country. IL means the actual shipping out of pro- ducts, and does not add to the wealth of the country. However, during the period of war finance, the creation of an external debt is of material bene- fit, because it increases the power of a warning nation to obtain suyUlies of materials produced by other peo- pies, thereby adding to its war-mak- ing power. This is a burden rightly to be borne by future generations"
 Great Britain.
 Great Britain's expenditures grow ing directly and indirectly out of the war greatly exceed those of any oth- CT Allied nation. Eighty-two per cent of the debt thus accumulated is internal, and involves no transfer of wealth to other countries. Of the external debt the booklet says:
 ''The interest and amortization of the other 8 per cent. of the debt, which is owed abroad, will amount to approximately $36O. .OO0,O 900. As an offset. the interest due Great Britain on advances made to Allies and Do- minions amounts approximately to l. 3 times the total interest on the external debt. Payments, in the main, will
  modiues or service, which, in inter national trade accounts, contribute to the credit or export side of the ledg- CT. To what extent England's ex- port trade will be stimulated by this situation is problemauc. For many years the United Kingdom has inn ported more goods than it has ex- ported, but this s0-called unfavora- ble balance of trade has been offset by international payments which do not enter into the reports of foreign trade.
 Foreign Investments.
 'Chief among these counter-balanc- ing items in the case of Britain have been the returns from investments abroad and the receipts Of British owned ocean-carriers.
 "It is estimated that British foreign investments before the war amounted to s19, 9,464. 1000, and that they now approximate s14 1900, ,0O0. 900. Broadly speaking, then, the returns from for oign investments that may be relied upon in balancing the International account have been reduced by about one-fourth during the war. Never theIess, the remaining foreign invest ments exceed the external debt by about $S,O0O, ,OOO, ,OOOO and the yield from these investments at normal rates would not only pay the interest on that debt but also leave a large margin to England's credit
 As an offset to England's loss of man-power in the war, the booklet cites the manifold improvements in the industrial organization of the country during the war, particularly in the manufacturing industry, where old fashioned machinery and ideas have been replaced by fool-proof tools capable of manipulation by unskilIec labor. Standardization of products and processes has also made the loss of man-power in industry less keenly felt
 Much depends upon the spirit and temper of a people Their record of achievements in industry and finance has amply demonstrated the capacity of the English for doing big things in a big way, and for meeting emergen- cies with the requisite energy and ability. In view of the advantage accruing from a century of progress in the realms of industry and finance, it may be expected that Great Britain will again recover from the effects of war no less quickly than it did a cen tury ago.
 France.
 France, though heavily burdened by the internal debt contracted dur ing the war, will be able to carry her external debt with no great difficulty, it is predicted.
 "Of the total debt, about S5,7S5,- O0O, 900 is external. As offsets to the external debt, there are French in vestments abroad estimated at sS,- 100, 100000. The peace budget of France will require approximately 16,0OO,00O, 900 or 17,00O, ,0O0,O ,O00 francs, which is three times the bud get of 1914. The service of the debt, which it is estimated will be 200, ,OOO, 900, 900 francs in 1920, is pIac- ed at 1O,0OO,0OO, 900 francs"
 France recovered rapidly after the overwhelming defeat and loss of i'm portant territory in 1870. Now, heartened by victory and with produc- tive equipment enlarged, 1t may be expected that recovery in the present period of reconstruction will be no less phenomenal than in the earlier period. The fundamental economic situation appears to be on a sound basis. With some outside assistance in the form of capital and labor, there