The Washington herald., 1919-01-17
COLOSSAL DEBT
HITS At FUTURE
Financial Conditions as
Wars Result Affects
Many Countries.

I. edness Of the nations which took
leading part in the war on either
side was a littlc under s20O, ,OOo.O .OOO.VO.
So much as that staggering total
appears to have been the direct cost
OF the war to the leading nations OF
the world Curiously enough the debt
OF Great Britain and that Of Germany
are approximately equal, abou;
SO oo0. oO0.OOC.
France has Incurred Indebtedness
OF thirty billions; Russia twenty
seven billions: Austria. twenty-tour
billions: the United States. twenty
one billions. and Italy. twelve billions
The United States appears sixth In
the list. with only Il tr.fle more than
one-half Of the indebtedness incurred
by Great Britain and by Germany.
Had the war continued Two years
longer the Indebtedness of the United
States would have been approximate
" fifty billions. These figures repre-
sent exclusively the war Indebtedness
To them must be added the debts as
these existed before 1914. The ma
tional debt OF the United states a.
that time was approximately Il billion
dollars.
Must He Increased.
Great as this indebtednc - IL. Il
must be Increased within the next
four or FIVE wears because the ex-
pcnse entailed in brinRiuE back armies
to peaceful pursuits and in carrying
on the work OF restoration OF indus
tries and agriculture will involve
large increases. especially in the debt
OF Great Britain as well as France,
Italy and Austria and possibly Russia.
1t Is not from the point Of view
Of the magnitude OF these figures but
instead from the point Of view OF
what they may mean to the United
States that discussion has followed
the publication OF these figures. Our
allies in Europe have amassed an ag
gregate debt since the war began OF
about sIlO. .OO0, COO. whereas the
United States has incurred an in
debtedneEs Of twenty-Ore billions.
This colossal indebtedness inevita-
bly, will affect future financial and
fiscal conditions and not entirely in
favor Of the United States. Frank A.
VanderIip and others have Of late
warmly advocated the absorption in
the United States OF foreign securi-
ties which will probably be offered
to this country soon after the peace
treaty is ratified.
A question will inevitably arise
which will refer 10 the ability OF the
nations whose aggregate indebtedness
reaches 80 high in the billions IN
comparison with the indebtedness in
CURED by the United States ttis
question Is: WEI this not tend some
what, II not greatly. to make it dlff-
cult to float foreign securities in
the United States. not because We
will be unable to absorb thesn Sc
curities. but on account of the doubt
respecting the ability Of. nations
Whose national debt il 50 colossal to
Tneet both principal and interest when
payments are due.
Long Time waiting
At all events the magniture Of the
worlds indebtedness. approximately
1900. .0CO 10000 all created in a little
over four years and probably soon to
be considerably increased. is likely
to postpone certainly for fifty years
perhaps Tor a hundred Years the ad-
jUstment OF the debts tn normal ma
tionaI and trade conditions. Frequent
ly Of late some discussion has been
heard based upon tho ability Of Ger
many to pay her debt.
Almost all the authorities are agreed
that Germany will not repud'ate her
debt. but instead will cndeavor 50
to handle 1t as to make 1t all the
more convenient for the people to
bear the burden and to pay tho in
terest upon it. Some OF the authori-
ties have been carefully figuring upon
|Germany's financial policies with re-
spect to the payment Of tho debt
They are inclined to think that pay
Inents can be so arranged upon a 3
per cent basis as to make II COM
paratiyely easy for the German peo-
pie to meet, with regularity the OBJ
legations which the debt imposes upon
Them. 50 also the estimate is made
hat IL Germany's indemnities do not
reach a higher figure than $1,000. .oO1 eco.
rhese can be met by creating obliga-
lions which will represent the IN
kemnities which will bear per cent
interest. although it will probably
(aka a hundred years for the Ger
nan people TO liquidate this debt, if
[hey ever do.
HOwey or. the United States is MOI
10 be directly affected by any qucs-
ion which refers to German inIem-
ities, since We shall not claim any
i1Iemnities. We intend to bear our
wn losses without murmuring