The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1920-03-27

Weekly.
Those people who have manifested
| deep concern lest the United States
collect interest on it's loans to the
allies, will find food for thought in a
recent revi W of the financial situa-
ton in Great Britain as published in
the British Board of Trade Journal.
This is a government publication and
presumably states the situation in
Great Britain with accuracy.
According to the Board Of Trade
Journal, the British Indebtedness to
other nations is $6,813, 100, 900, against
which Great Britain has loaned to the
dominions and the allies, $8,462, 843,-
500, showing Great Britain a net
world creditor and not a net world
debtor, although it must be admitted
that many of her credits will not be
productive of an annual return at
present.
Great Britain has beeL the heaviest
borrower from the United States and
it is in the interest of Great Britain
that some people have suggested that
the United States defer or abandon
collection of interest ON our credits.
Some have even gone so far as tc
suggest that we cancel the debit en-
tirely. A review of a few pertinent
facts is therefore timely.
The balance in merchandise trade
has been against Great Britain for
many years. The balance in merchan-
disc trade has also been in favor of
the United States, with very slight
exceptions. But merchandise trade is
not all of the business of a nation
and its people. There are what the
British Board Of Trade Journal calls
invisible exports" that is. services
rendered for which other countries
pay and which counterbalance any
adverse excess of imports of mer-
chandise.
For instance, according to the
Board of Trade Journal, prior to the
war the annual balance of merchan-
disc trade against Great Britain was
about $3.50, 000, 900. But Great Britain
was the carrying nation of the world
owning practically one-half of the
merchant tonnage on the high seas
Great Britain was the banking nation
of the world and collected toll from
practically all international transac
tions. Great Britain was the insur
ing nation of the world and collected
premiums on practically all of tn
marine insurance as we'll as on tn
other classes of property. Grea
Britain furnished much capital TO
loans and investments in other coun
tries and collected annually hug
sums in interest and dividends
Travellers who went from the west
ern hemisphere to the eastern passe
through Great Britain. Tourists, al
together going to continental Europe
made prolonged stays in the BIRTHS
Isles. All of these travellers adde
literally to the income of the BIRTHS
nation. From all these services, des
ignated as invisible exports" Gres
Britain realized an income far in Ell
cess of her adverse merchandise ba.
ance, leaving her at the end of tn
year a large net income added to he
financial resources.
Passing over various items in tn
British analysis of the financial situs
ton which confronts the United King
dom, and looking at the estimates fc
!, 1920, we find the prediction that Gre;
!, Britain will buy abroad, goods to tt
amount of slightly more than $4,000
!, 600, 900 in excess of the goods sh
sells, but that, against this large in
port excess, the nation will have iii
} visible exports" to the amount {
more than $4,000. o00. 1000. leaving
balance Of practically $1,000. 10000
/ on the right side of the ledger.
There is apparently no occasion fl
Americans to lie awake nights worr.
, ing over the ability of Great Britai
Il to take cars Of herself