The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1920-01-31
EUROPE NOW
UTTERLY BANKRUPT
v;b Britain lettering, France
Worse Off, Germany Financially
E8aeed and Italy PROSTATE, Debts
10 U. S., Expert Says, Viii Be
Regulated.
.. ARTHUR SEARS HENNfNG

n. ARTHUR SEARS HENNfNG
washington. January 24.-owinI
80 rnited States s1S,000,0OO 200
rs,one Is bankrupt and probabi,
ever will pay its debts. in the opin
~ of Mark D. Prentiss, chairman o
.ss hoard of directors of the Bankers
goreign Credit Clearinghouse.
prentlss, who is in Washington
calculating in conferences on tn,
soreign exchange situation. said tina
ha looks for the reputation by thu
allies OF their enormous financial OBJ
uga,ions. "as the only way out"
..The world is sitting on q volcan,
hat may start its eruption at an,
lime. with the result that the fnan
eal structure of the world, as WI
have grown accustomed to 1t, will b,
totally destroyed" said Prentiss.
INTEREST FUNDING o. N.
II also became known that tbs
House Committee on Ways and Means
altar thoroughly canvassing the Ques-
ton Of the payment Of interest on ths
sl0. 0OO, 900, zoe loaned to the allies
: By the United States, has given tact
approyal OF Secretary of the Treas
ury Glass negotiations for the fund
;rr Of these demand loans into long.
term obligations.
The committee became convinced
that the allies could not pay the in.
tsrest of s5O0,000,0 600 a year ano
concluded that the funding process
combining interest with principal, ia
the only way out"
Prentiss said that foreign ex-
changes are likely to continue Their
decline until they reach the vanish.
ING point, the money of many for
sign countries becoming absolutely
without value in international ex.
change, possibly within the next few
weeks.
ARE UTTERLY BANKRUPT
The nations of Europe" he said
are now trying TO devise some form
Of promises to pay which really par
take OF the character of receivership
certificates. There are few men who
really have any hope that any part
Of the International debts will be
paid
Germany is worth $50, 900, 900, 900,
Prentiss estimated. and owes $751;
900, 900, 900.
We do not like to disclose Great
Britain's plight" the banker contin-
ued. The people are prone to look
to Great Britain as the most solvent
Of nations and thought of British re
pudiation is n that we have re-
fused to entertain. But here are the
conditions:
Before the war Great Britain had
10000, 000, 000 invested throughout
the world. This has been reduced rs
per cent by forced sales, shrinkage,
destruction and other causes. leav-
ss,o00. 600, 900. The income oil
Great Britain last year was 100000
700 per day less than her national
expenditures, and 1t is estimated that
the discrepancy is greater to-day. The
British Government is under tremend
Gus expense TO maintain the penny
loaf. which costs $5.000.000 a week
and this expense is steadily increas-
ing. Her interest charges are ST.
aO,o00,0 goo against a pre-war inter
est charge of s122. $685. 900.
FRANCE WORSE OFF
The condition OF France is much
worse because France has not at
tempted to pay any appreciable part
Vi her war debt by taxation. 1t has
expected to pay the debt out of big
var indemnities from Germany,
which have disappeared into thin va
por and through the recovery of
ioans to Russia. which no one nov
would dare to consider as assets.
The condition of Italy is deplor-
aoie. Her national debt interest
sasfges are now almost as great as
asf national income before the war.
cue mas lost the great income from
pufists, she has lost her cheap labor
4ad she is compelled to pay enormous
prices for raw material. She formerly
imported 1900. 900 tons of coal at
"a ton, but now pays $40 a ton.
There has been an alarming in
asase In the cost of ocean transport
aom the United States of from less
aan W to more than $40 a ton. al
a0ugh there are 100000 gross