The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1920-04-29
THE STORY OF TEN BILLION
DOLLARS


awful lot of money to other countries
during the war and that we might not
get some of it back"
well, Jack" replied Uncle Ted,
s'your father was certainly right when
he said the United States had loaned
other countries lot of money. You
see kiddies, during the war it was
necessary for the allies who were
fighting Germany to have large sums
of money with which TO buy war ma
terials, food and supplies. It happen
ed that the United States had more
money than anyone else at the time
and we loaned the various countries
different amounts of money at differ
ent times until the total amount has
reached the enormous figure of $780,
600 900, 000."
"Phew!' said Ruth, that's lot of
money"
81 should say it was lot of money.
And the worst of it is that many Of
the people in Great Britain think we
should cancel the amount we loaned
England"
What do you mean cancel the
amount'?" asked Jack.
by that, Jack mean let them keep
the money and never pay it back. You
see, these countries borrowed this
money with the understanding that
they were not only to pay it back but
that they must pay interest, that is,
pay a certain amount for the right to
use the money. Now there seems to
be a movement on foot in Europe, es-
pecially in England to not only get
out Of paying the interest but to get
out Of paying back any of the money
at all"
"How much did we loan England?"
asked Jack
eve loaned Great Britain, $4,210,-
100000. Great Britain has loaned 9TH
er countries $500, 900 900. Of course
$4,21O, 100000 of that amount was fur
nished Great Britain by the United
States, SO that Great Britain has real
ly only loaned to other countries $4,-
100000. To give you an idea of
how certain Enghshmen think about
this matter, | will tell you about a
who is connected with the British
Treasury in somewhat the same way
that our assistant secretaries are con-
nected with our treasury. He says
that because Germany will not be able
to pay back much for the terrible
damage she did during the war, that
the United States should do the paying.
N0f nnTrca ho 71ooonc bu ,aaxyiur hot
we should tell all the allies that they
can keep the money we loaned them
and forget it, Besides this, he says,
in a round about way, that if we don't
do this these nations might call an
other war in order to keep from pay
ing this money. That sort of thing is
not only silly but dangerous and the
sad part of it is that many Britishers
feel the same way.
cit wouldn't be quite so bad if Mr..
Keynes stopped at saying this much
but he goes on and suggests that
after the United States has told the
allies that they can keep this $4,000
100000 that this country should make
another loan of about 100000 900
of the Atlantic get in position to
do business on as big scale as we
do. In other words he would have
the United States furnish the money
for the countries of Europe to do
business that would take business
away from this country"
"Wnere did the $4,000, O0O, 900 come
from that we loaned to the allies ?"
asked Ruth.
~ am glad you asked that question
Ruth" answered her uncle, because
| it just shows how impossible it would
be for US to cancel these loans. The
$40 900 ,000, 900 has not yet been paid
and when it finally is it will be paid
by you and men and all the people of
the United States who bought bonds"
/ What would happen if we cancel
this debit"
"The first thing that would happen
would be the forming of some plan to
raise $4,000 100000 in this country.
| It might mean another issue of bonds,
like Liberty and Victory bonds, or it
might mean more taxes on things we
eat and wear and use every day Of
/ our lives, or both. In other words,
kiddies, the matter is very simple. We
loaned this money to the allies TO
help them win the war. They knew
that they were to pay interest and in
time pay it all back. The United States
would expect to do the same. Not
counting these loans, the war cost the
/ United States about $4,000 200, 900
and if we cancel the $4,000, 000,0 900
loan, then the war cost US those two
I amounts added together which make
$35 900 900, 900. 1t really would mean
more than $35 1000 900, 900 for we would
have been without that money for
many, many months and would have
lost the interest besides. Here is an
other important thing for you to re-
member The Senate has again kill
/ ed the peace treaty with the world
1 club plan and it is now up to Presi-
dent Wilson as to what will be done.
The greatest danger Of our joining the
world club has passed but there still
| is a chance that the idea, at least, will
have to be fought. If, with England
/ having six votes to our one in the
world club, she should decide that she
would not pay back this money, we
would have little to say. That shows
you again what dangerous plan it IS"
Hasn't England a lot more land
than she had before war asked Jack.