The Denison review. [volume] (Denison, Iowa) 1867-current, 1920-11-24
$500, OOO, 900 "A YEAR FOR DIS
CUSHIONS"

q 70. ~ 4 b. =
WASHINGTON, Nov. 19--"There has
been an unfortunate attempt by some
parties in Europe to create the i'm
preston that the debt owed the United
States is not really a debt at all, but
should be cancelled as part of our con-
tribution to the cost of the war" de.
clares the republican publicity associa-
ton, through its president, Hon. Jona-
than Bourne, Jr. 1.-THE conversion Of
the debt into bonds with definite rate
and maturity date would go far, to dis
pei that illusion. .af II n =, 81 ~
Word comes from London to the eff
feet that the Germans have delivered
to the Preparations commission under
the Versailles treaty bonds to the
$1,000, 900, GOO pounds sterling at the
present rate Of exchange, or approxi-
mately $4,000 900 900 at the normal
rate Of exchange of American and Eng
lish currency. That means that Eng
land, France and the other allies have
got specific acknowledgment of a large
portion of the debt which Germany
owes them, to take the place OF the
rather indefinite I. O. us contained
in the peace treaty signed by only two
Germans. 1t means that the allies will
begin to draw interest on those bonds
and that they can be presented for re-
tirement at the dates specified therein.
Furthermore, it means that that
amount of the German debt to the allies
Dis now in negotiable shape and IT is
possible, If the allies choose to do So,
to sell the bonds in the worlds mar
kets and realize cash upon them.
"All Of which should forcibly remind
the American people of the huge debt
owed by the allies to the United States,
which now approximates $4,000 900 900
That debt is evidenced by the deposit in
the treasury of various promissory
notes signed by ambassadors and min
isters from the debtor countries at
Washington. Those notes bear inter.
est at the rate Of 5 per cent per annum
but comparatively little of that inter-
est has been paid. The liberty loan acts
authorized the secretary of the treas
lry to exchange the demand notes held
by him for long time obligations OF the
debtor countries. For. many months
cussions with those countries as to the
terms Of the exchange and meanwhile,
the collection Of interest on the debt
has been deferred. 1t is intimated by
the secretary that no interest will be
collected during the reconstruction perl
cd Of two or three years from the
spring Of 1919
American taxpayer? 1t means that he
must contribute about $50000o,00 a
year while the treasury discussions"
are in progress, and until an agreement
has been reached with debotr govern
Inents as to the terms Of the long time
obligations we are expecting from
them. Every man, woman and child
in the country is to be taxed 30 year
while the exchange Of opinions is TAX
ing place. That is one-eighth of the
entire sum which the secretary OF the
treasury estimates as necessary to run
the government for the next year.
.sThe Hartman national bank Of
New York is engaged in 9 publicity
campaign to urge the prompt exchange
of the promissory notes now held into
negotiable bonds, primarily to secure
a direct ond specific acknowled gmentJ
by each debtor government Of the ex-
istence and validity of the debt, and al
SO to establish date in the near fu-7
ture when Interest payments may be
expected sand allowance made for them
in estimating the revenues of the treas
ury. As.
isof very pressing interest in the re-