The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1920-07-17
SAYS BRI1,AIN'S
FINANCES ARE
IN GOOD SHAPE
F. r. Shorts, Of Guaranty
Trust Co., Brings Direct
Report Of Conditions
WAR DEBT Is NOT AS
LARGE AS IT APPEARS
All European Countries
Need Time to Their Bills
to United States

F. R. Shorts, who was recently ap-
pointed Vice President Of the Guar
anty Trust Company Of New York,
has just arrived here from England
Mr.. Shorts for many years was in
charge of the foreign business Of
Keinwort, Sons & Company, mer-
chant bankers of London, and subse->
quently became manager Of the firm
He resigned that position last year
to become Financial Adviser to the
Inter-Alied Rhineland High Commits
sion, from which post he recently OBJ
tanned release
In discussing the financial condition
of Great Britain yesterday, Mr. Shor-
It's said:
IT think there is an impression in
less well informed quarters of the
United States that it is unnecessary to
discriminate in regard to the respec-
tive economic positions of the Allies
1t is probably felt in some directions
that the war has left them all in
such a state Of financial paralysis,
from which 1t viii take them long
years to recover, that the question of
degree is immaterial While this
feeling may accurately represent the
situation in regard to certain coun-
tries, it is certainly not correct in
regard to Great Britain. 1t is true
that she has spent in connection with
the war from the first of August, 1914,
to the first of May, 1920, the vast sum
Of f11,oo0, 100000, or at par of ex-
change, $53, 400, 100000, but it should
be remembered as a, point of extreme
Importance, that of this stupendous
amount, more than f4,0O0,0O0,o00
($19, 44O, oO0, 00o), that is to say, more
than one-third of the total, has been
raised during the war by revenue,
leaving a balance outstanding of ap-
proximately f7,0O0,000,00O, ($34,o20,-
600, 10000 The latter figure includes
advances to the Allies, as well to
the British Dominions, of approx
mately f1,S 100000, ($s,991,0 0O,-
oOo.) It is difficult to state what
amount of the latter sum will
eventually be recovered, but by as
sessing it for the purpose at f1,000,-
100000, ($4,s6o, 000,oo0,) there would
remain an amount outstanding in con-
nection with the war of 0,000,-
900, ($2s,160, ,ooo), or only one
and half the amount that has al
ready been raised in revenue during
the last four years.
cit is possible that the revenue
raised during the last four years may
exceed the amount which is possible
| by means of equivalent taxation in
| the future, but at the same time, there
| should be a very drastic reduction in
Go Ternment expenditure to compen-
| safe for any loss of revenue raised
| thereby. There is at present a vast
| army of Government clerks and Of
| fcials which will in due course be
dispensed with, although Government
action will, as usual be very slow.
| considering the extent of her ex-
| penditure the war, the financial
position Of Great Britain is decidedly
Favorable. 1t is gratifying to know
| that she is not only balancing her
| budget in a satisfactory manner, but
| has moreover, considerable surplus
in hand which should provide a sink
! ing fund sufficient to redeem the en-
tire outstanding debt within a rea-
/ sonable time.
| "Considerab1e pressure is being put
| on the Government to exercise dras-
| tic control over the spending depart
| ments, SO that the dual result of
economy and taxation will place the
| country upon a sound economic basis
| Trade throughout Great Britain
| has, until quite recently been excel
| lent, and statistics demonstrate the
healthy condition of her export trade.
| 1t is true that during the last few
weeks there has been a falling off in
the amount of orders received from
abroad. It is difficult to say, how
| ever, whether this is a temporary or
| permanent development.
| 1.-The big joint stock banks with a
view to bring about some deflation in
| credit have been exercising discrini-
nation regarding loans, and have de-
| clined all applications based upon
stock exchange securities, or COM
modities of a non-essentia1 descrip-
ton. They aree unfortunately, COM
PEELED to carry a large amount of the
floating debt Of the Government in
| the form Of Treasury Bills on ac-
| count of a disinclination of the in
vesting public to purchase the Treas
ury Bonds which the Government
| hoped to sell for the funding of this
debt. The banks, therefore, are un-
fortunately not in a position to give
the assistance to trade that thez