The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1920-12-23

grows smaller of course the intercs
G paid BY the Government will grov
less, but at the present time Il is abou
y S900,Oo0,o00 year That Is a tre
mendous sum and requires almost
quarter Of all the Governments tai
money TO pay, but there is a way tha
J. Il can be reduced more than half, an,
that is what ! want 10 tell you about
. 50 that you can explain IL TO the Other
boys when you go 10 school tomorrow
When Congress passed the lawr
directing the Secretary Of the Treas.
ury TO raise money by the sale Of Lib
erty Bonds, paragraph WAS included
saying that he could lend some Of the
money TO the allies 10 aid them in
cfrrying on the war with Germany
The Secreary was told that these loans
must not exceed $4,000 000, 900. Just
about half Of all the money the people
paid into the Treasury for bonds. Be
ginning with April 25, 1917, the
Treasury turned over millions Of dol
lars almost every day to represents
tives Of the allied governments sta
toned in Washington. Even as ne
Gently as September 2S Of this year a
payment OF sl0,Oo0,O00 was made to
France, and the Secretary says that
other payments are TO be made In the
future. Altogether the money the
United States has loaned to foreign
governments amounts 10 about So
500 100000
Now, when that money was rcceiv-
ed by the allies they gave receipt
for it, called prmissory note, stating
that interest on the loan, at the rate OF
8 per cent every year, would be paid
until the loan was returned 10 the
United States Treasury. OF course IL
that interest were actually TO be paid
i would amount 10 about S475, ,000, 900
year and could be applied by this
Government toward the payment Of
more than half the interest which has
to be turned over 10 Liberty Bend hold
ers every year. At first the interest
was paid by the forcing governments
when II became due, and our Treasury
received about s437 100000 in that
way, but in recent months practically
none Of il has been Forthcoming, and
on November IS, 1920, there was due
from that source over 100000, 900.
Moreover, there is no immediate pros
pect Of the interest payments being
resumed or IL the back interest being
p i'd"
81 know that when my father has
borrowed money at the bank he has 10
pay the interest on il promptly on the
day IL is due" said Jack. "Why is IL
that the United States cannot collect
the interest that is due il from other
governments ?"
"The reason is" explained Uncle
Ted, that the Secretary of the Treas
ury has made no effort TO collect il.
On December 18, 1919, he wrote let
ter TO the chairman OF the tax commit
tee Of the House of Representatives
stating that he did not want TO insist
that the allied governments furnish
that huge sum Of money at once, as II
would seriously interfere with their
work Of reconstruction after the war.
Congress agreed with the Secretary.
and no demand was made for the in
terest.
"But the Secretary has tried TO in
luce the allies TO exchange the prom
ssory notes for bonds somewhat like
he Liberty Bonds with which you are
IN feet, there is a provision
n the notes that the exchange will be
lade whenever the Secretary shall re-
quest il, out for some reason or other
he allies do not want 70 do !. They
'eem TO have the idea--and IL has
been publicly expressed in England
hat the loans they have received from
he United States arc not really a debt
II ali, bu. should be considered q gift
ron Us as part Of our share in win
ling the war They appear TO feel
hat the issue Of bonds in definite
Of that loan would
tx the debt upon them and theyycould
Tot shake II of
"The saving Of that huge sum Of
g, 500 100000 to the people Of the
United States by securing from the
lilies actual bonds in that amount, and
he collection Of the back interest on
hat debt and interest that will come
ue in the future, is one Of the big
asks that awaits President Harding
hen he takes control of the admins
ration on the 9TH Of next March His
lccess will mean the reduction of our
y burden about one-eighih. and pave
le way Tor the payment of almost
III r our national debt y foreign
-easurics.
Now. run along to bed hddies and
80 ,se..,,.,-t..s- fts4 4 fe !. s4efrsrtsy ser