The Washington times., 1919-09-19
ALLIES WAR DEBTS
NOT GREAT BURDEN

That the present resources and pro-
ducing power OF the four principal
European allies are ample to enable
them 70 meet all war obligations and
20 regain their normal strength in the
worlds business is. the conclusion Of
an analysis BY the Guaranty Trust
Company, OF New York, in the in
ternal and external war debts Of
Great Britain, France, Belgium, and
Italy.
The internal war debt of the allies
Il Is pointed out, by far exceeds the
external debt, and, il is claimed, the
ability to meet an internal debt IS
purely q fiscal problem, because there
are no additions to the national
wealth and the payment Of interest
implies tho taxation Of the people as
a whole, On the other hand, the prob
lem Of meeting external debts means
the actual shipping out Of products
and thereby detracting from the
wealth of the country.
The expenditures Of Great Britain
resulting directly and indirectly out
/ Of the war exceed those OF any other
! teliigerent in Europe, but 50 per cent
I Of the debt thus accumulated is in
/ ternaL
Britain In Good shape.
s'The interest and amortization OF
the other Is per cent Of the debt,
which is owed abroad, will amount to
( approximately $3.50 ,OOO. .OOO,' - the analy-
sis states. "As an onset, the interest
due Great Britain on advances made
/ to allies and dominions amounts ap-
! proximateIy to 10 times the total,
| Interest on the external debt. Pay
! ments, in the main, will have to be
made in the form Of commodities or
1 service.
1T is estimated that British for.
/ eign investments before the war
amounted to S19,464OO0,OOO, and that
they now approximate &14,5Q0, ,OOO, 900.
/ The returns, then, from foreign in.
vestments that may be relied upon in
balancing international account have
been reduced by about one-fourth
during the war. The remaining for
eign investments, however, exceed
the external debt by about $4,000, ,OOO,-
600 and the yield from these invest.
ments at normal rates would not only
pay the interest on that debt but
also leave a large margin to. Eng
lands credit"
OF the total Indebtedness of
France, about S5.7S5,OOO, 900 is exter-
nal As offset to the external debt,
there are French investments abroad
estimated at $500 600, 900. The
peace budget OF France will require
approximately 10000, 900, 900 or 1T,-j
600, ,OOO, 900 francs, which is three
times the budget OF 1914. The serv-il
ice Of the debt, which II is estimated i
will be 100000. .OOO, 900 francs in 1920, 4
Is placed ct 10000, 100000 francs.
Belgian OutIOok Bright.
Belgium, unlike the other belliger-
ents did not suffer greatly in the de-
pletion Of man power. Much faith isl
put In her proved Industrial capacity3
and the dependable character Of thei
Belgian masses to establish the .eouh-
try once again on a sound economic
basis.
The debt Of Italy on March 81, 1919,
Including paper money. was S13,O79,-
81B,sO7, Of which about three-fourths
was internal. The external debt I
amounting to S3,33O,141. .Ts4, consisted /
entirely Of credits extended during I
the war by the United States Govern-l
ment and other allies. The pre-waf I
debt was approximately So, 631, 40, 900. /
The annual interest on the entire debt /
as Of March 81, 1919, is approximately /
y577.234- -230.
The United States, because Of her
actual wealth and great resources, Il |
Is claimed, is in a position TO lend to
The European countries and to supply
them with materials.