Evening journal., 1920-03-11
AMrnIcA wonLp.coAr LoNc ENoucn.

NHR McAD0O says that Europe will be able within
lSA few years. to take up the payment Of interest on
The debt Of about Si00OOOO0OOO owed the United States
In the meantime the former secretary recommends
that the deferred interest should be funded It
due, and United states bonds issued annually in the
amount Of s5OOOOO0OO
In that way he concludes that the treasury viii not be
seriously inconvenenced by the posponement Of Euro
pean interest payments and taxation to that amount
which would otherwise be necessary to meet the interest
Liberty bonds corresponding to the amounts Of the
foreign loans would be avoided
one obvious dialculty with the NIcAdoo system OF
finance is the fact that it has been understood that
c-csl foreign bonds not to be compounded in other
words the United states not TO charge interest the
s5o0Ooo000 deferred annual interest charges.
But OF course the treasury cannot sell bonds without
attaching 20 them rate OF interest probably as
high as nye per cent
Hence II this funding operation should continue for
years the government would suffer net loss Of about
250000O0 not nconslderable In these days OF
billions.
But it is incomprehensible to the average American
why The governments Of Europe should be permitted to
defer their interest obligations, according TO their
sweet wlll with no apparent effort on the part OF the
administration compel them to meet the charges when
due.
England has enough money to continue the construc-
ton OF the greatest batteships the world to spend
s3000oOOOO on an aerial prosram while this country
afford but teath Of that sum- to give generous bonuses
to soldiers and spare expense in extending her
foreign trade into all parts OF the world According to
Senator Borah the British Empire has added to It's terri
tory as an outcome Of the war an area almost equal
to the whole United States
France, too is recovering by leaps and bounds from
the prosraon Of the While in January her imports
increased about 80 per January of last year.
exports than doubled jumping over oS rer cent
She ike Great Britain has added enormously to her ter
torial wealth In the distribution Of former German
colonies and in the acquisition Of Asace and Lorraine and
the Saar Valley.
The other countries Indebted to America are rapidly
getting on their feet and SHOULD be able to their
obligations TO us.
As an evidence Of the ability Of Europe to pay when It
feels that It has to do IS the announcement that the
s5OoOoOOOo Of Anslo-French bonds falling due next
October will be paid and shipments Of sold 20 this
try FOR that purpose about to begin.
Those bonds held by private investors in the United
sales who Of course nsisent that their finances
shall be protected Both principal and interest Of those
privately owned securities forthcoming when due,
but not the interest foreign securities In the
United States Treasury be met.
It so happens that the amount Of the Ango-French
bonds equals the amount Of interest due this government
As practical proposition why should those bonds
refunded and the money set aside for their payment
devoted to meeting the interest on the larger oang
Again If there any funding Of deferred interest to
be done why should the debtor government attend
to it2
According TO the market quotations Of American and
foreign bonds would be just for those countries
TO raise money by bond issues to meet their international
OBLIGATIONS as it would be for the United States to adopt
tho arustc McAdoo plan and add more Imitation to our
own financial situation
Some peoi> OF The opinion that The United States
has playes the OF world goat long enough and that
# is about ,,Ine Cor this country to assert Itself