The Bridgeport times and evening farmer., 1919-02-17
BRITAIN WORKED
 OVER " AR DEBT
More Than S4,OO0,OOO,OO0 Has Been Loaned Her By
 America.

Washington. Feb. IT. - London financial writers have frequently ex- pressed their disquiet over America s ideas for funding floating war loans made to Great Britain, which amount to over $, J0u,OJ0,0 ,0OU, ana unaLrc-erS are declared to be anxiously awaiting President Wilson's solution of the question of consolidating the various loans. This anxiety is declared to be increased in London because of Pres ident Wilson's known attitude against demanding huge indemnities from Germany.
 Representative Cordell Hull of Ten nessee (Dem.), member of the Ways and Means Committee of the House, commenting upon British anxiety, said:
 The Government has loaned to the Allies which established credits with us sums aggregating $S,600.000,O ,O00. The Er fish loans anu mt to over S4,- 00,00O.000, French over $S,000,O0O,- 900 and Italians over $1,000, ,00O,O 900. The other loans been distributed among Belgium, Serbia and Russia Russia got $1S7, 900. The loans to her were discontinued at the time of the collapse of the Kerensky Govern ment.
 When we entered the war England had been financing the Allies by loans to them. Her loans to the Allies and the domtnions aggregated a little over $3,000, 100000. It was agreed that this country could help more during the early stages by doing some of the financing than in any other way.
 ''So far our Government has simply taken what would be termed a de- mand obligation from the Govern ments of England, France and other countries to which loans have been made. The Treasury would call on the State Department for an opinion as to whether the English or French or other officials, as the case was, was duly authorized by laws of his own Government to make a valid and binding obligation on the part of his Government, acting, of course, for it
 After receiving satisfactory as- surances and after satisfying itself that the 1oe ! was really necessary and would be expended in @ manner not objectionable to us, the Treasury would proceed to make the loan with the approval of the President. '"The first loan act which provided for loans to the Allies restricted the terms, including the interest rate, SC that they would correspond practical ly with the terms of our domestic bonds issued to raise the money, but the act following this gave the Treas ury more latitude in fixing the terms of the foreign obligations that would ultimately be taken. It was tacitly understood that virtually all the money loaned would be expended iu this country, chiefly for the payment nP dd nd The Treasury soon decided that or account of the expenses of making these foreign loans and because the interest on our own bonds was taxed while that of these foreign obligations would not be taxed, it was necessary to require these foreign government to pay about per cent. interest in order to eQualiZe the situation.
 During the war, while these for. eign loans were being rapidly made the treasury has not undertaken to put the foreign obligations in perma- nent form but as stated, has only taken demand obligations. This ac. ton has been to the advantage of ou1 government in every respect, because in the first place, a demand note is al. ways preferable to the credit of g time note It could be called at any
 
 ent apprehension in England.
 'Tn the second place, the treasur, could later determine with much more satisfaction as to just when and ir what amounts these foreign loan. should be paid, both In connection with our own needs and with respec , to the ability of these debtor nation. to make payments.
 we would not want them to at tempt to pay this large indebtedness, at once, because they would have tt pay it in either gold or goods in theil situation.
 '"The Treasury will now undertake gradually to consider carefully |. oul own needs and conveniences with re ! spect to the time and manner of thes, l payments. and also the ability O ! these foreign debtor nations to com ! ply with such plan and method : repaying the loan.