Evening journal., 1920-11-27
WORLD DEBTs AND PAPER CURRENCY.

nELAWAREANS cannot fail 10 1nd interest in the en-
~ phatc declaration made high financial circles that
the growth world debts and paper currency has not
been ecked by the return Of peace The additions to
world national debts which averaged si0OOOOOOOOO per
annum during the war. sii0O0OOOO0O in the FIRST
year following the armstce and S2 O00OO0O0O the year
just endede second peace year The additions 10 world
paper currency which averaged per annum
during The war; Si200OO0OOO In the first peace year
and So 5OOOOOOOOO in the year Just ended
detailed discussion Of world national debts and paper
currency appearing the November issue OF The Amer
cas issued by The National City Bank Of New York pre-
pared by the banks siatistcan o. Austin, shows that
world national debts which increased from sl3OOOOOOOO
in 1919 10 i2OO0000O00 at the date OF the armstce
$3.50 0OOO0OO year later 100000 10000 Novem
Der, 1920, two years after The amstice World paper
currency whc increased from S7500OOOO00 in 1913 to
Si30OoOOoOOO at The date OF the armlstce s55OoO
10000 year later and ss9O0OOOOOOO in November,
1920 the end Of the second peace year The ratio Of gold
10 world paper currency, which averaged 663 per cent
In 1913 and 76 per cent at the close Of the war 1875
cent at the end OF the first peace year 90 per cent
on the second anniversary OF the armstice Annual in
erest charges world national debts which about
st7oO0O00OO per annum prior to the war approx
maey S9OOOOOOO0O per at its close and more
than s2OOOOOOOO0 per annum. These figures in all
based upon the prear par value OF the currencles
OF The respective countries but in all exclusive
OF currency other obligations Of the Soviet Government
Of Russia
Most Of the afier-the-war increase in national debts
and paper currency in Europe National debts in
North and South America show an actual decline in the
second peace year and but a trl1ng in Asia,
Africa and 0ceana, while national debts I'm Europe in
creased 3OOOOOO00O in the first year following the arm
stice and s5000O0OOO in the second year. just ended
Paper currency which increased about S2OOOOOOOO in
North and South America in the second peace year and
showed a slight reduction in Asia Africa and Oceana
creased diOOOOOOOO in Europe in the first year following
the amstce, and s26O00OOOOOO in the year Just ended
Europes share Of the wond national debt is SO per cent
and OF world paper currency SO per cent.
These postwar increases national debts and paper
currency are, says the writer largely result OF budget
deficits" especially in the European countries and were
the subject Of much attention sharp criticism at the
recent Brussels Financial Conference OF the League OF
Nations The operations Of governmental machinery paid
for In greatly depreoated currency are necessarily
many times in COST those OF the pre-var period while
the mere interest charges national debts are now more
than billion dollars month, and with these conditions
national expenditures have far in excess OF receipts
from taxation and only be met by increases An ma
tiona debts or issues OF paper currency Reports
submitted at the Brussels Financial Conference indicated
That threefourhs OF the governments OF the world are
now showing annual budget deficits and that eleven OF the
Twelve European countries reporting there showed an
nua expenditures in excess Of receipts from ordinary
sources
lne tabuations and accompanying discussion show ma
hona debts Of svenyve countries and colonies at the
beginning and end Of the also at the end OF the
hrs and second following the armstfce; the cur
rency statement which shows gold and paper currency
IN each Of nifty principal countries for corresponding
dates also shows the ratio OF gold paper currency in
each Of the countries IN question and at e respective
dates above mentioned