Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-11-14
America a Liberal Creditor

HE announcement by Sir Robert Horne
Chancellor Of the EXchequer, in the
House OF Commons that arrangement has
been made to begin paying the interest on
the debt owed by Great Britain 10 the
United States at tho rate Of S50,0OO,OO0
annually, will have the effect Of creating
sentiment in this country conducive TO closer
accord between the two nations in the com
ing arms Limitation conference. The mere
suggestion made by British spokesman some
months ago that the allied debts be can
celed. with the United States taking the
initiative, and Britain, the next largest cred
itor nation, following suit, aroused here
antagonism to the proposition that has gath
cred volume the more it has been discussed.
From the moment America entered the
war it contributed its full share, both in
men and money, from its enormous re-
sources to make certain the triumph Of The
allied cause. Then it appealed to all classes
OF the population from the poorest to the
richest for additional billions of money. to
be loaned to the allies to finance their
needs. They responded with unstinted lib
crafty. but it was with the understanding
that these loans would be repaid in time
and the funds so received turned into the
national Treasury to be applied to the les
SEEMING of the huge burden OF war-mposed
taxation, freely assumed for the time being
to win the war. But America has been
liberal creditor. Tho interest on these
loans is now three years overdue and legis-
lation ~ now pending in Congress to au-
thorize the Secretary Of the Treasury to
fund these foreign loans in long-term notes,
thus giving tho debtor nations ample time
10 recover from the disastrous effects OF
the war and to accumulate resources for
meeting the Indebtedness.
The principal Of the British debt to this
country now stands ut approximately
Ss,166,OO0,000, upon which interest is pay
able at . per cent annually. The annual
interest amounts to about $20OO0O,OOO,
which would be approximately equivalent
TO about 100000, 900, figured Mt an ex-
change rate of about 81, the pound now be-
ing quoted st $3.94. There is, however, ac-
cumuluted interest which would amount
10 about s6oo,ooo.o0O OH November IS,
which would have to be taken into consid-
Grafton by the British
Therefore, particularly gratifying is the
statement of Sir Robert Horne that an ar
rnngoment has been made to meet this part
oil the Indebtedness, coupled with his fur
Their suggestion: II hope this remark about
the debt We owe America will not be made
the occasion for any discussion OF the inter-
allied Indebtedness. II does not cOnduce to
tho iricndliness Of the feeling between
America and ourselves TO discuss that mat
ter ut all at present. Our attitude in re-
gard to our debt must be that when we
Owe we shall always he prepared to pay and
that we shall meet our obligations, how
ever hard and difficult the circumstances
may be-"
With Great Britain taking this attitude
ii is not likely that her delegation in the
arms conference will risk the success Of
that meeting BY lending countenance to
the manifest purpose of one or two other
nations To bring the subject up for discus
sion.