The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-02-12
ENGLAND SLY
IN REQUESTS
FOR PAYMENT
Considerable Understanding
Exists in Chamberlain S
Statement, Says Sullivan, on
Cancellation of Debts.
DIPLOMACY IS keen
BY MARK SULLIVAN

money owed 10 us by our allies. The
bulk OF this talk has been sadly lack
ing in understanding. Mystery has
been made of the fact that member
of the British cabinet, Austen Cham
berlain, in public speech stated that
Great Britain had approached us with
suggestion that we cancel these
debts
Mr.. Chamberlain's action has been
the American press. 1t has been de-
scribed as a diplomatic indescretion
or something worse.
To anyone who knows all the facts,
there is no my"tery in it, and Mr..
Chamberlain had a perfectly good mo-
tive for what he did. He must be
smiling good deal over the reception
his remarks met in America. Mr..
Chamberlain's public allusion was not
meant especially for the ears of Amer
lea, nor for the ears of Great Britain.
Meant For Allies.
1t was meant for the ears of France,
Italy and the other allies. DR.. Cham
terlain doesn't care and Great Britain
doesn't care so much about our can
ceiling these loans. The flood of talk
here in America which has taken
color of resentment against England,
is wide of the mark.
1t makes some difference to Great
Britain whether we cancel these loans,
but not so much as it universally as
Sumed. So far as Great Britain is
concerned it would be largely a book
keeping transaction.
Are In Same Boat.
1t is not Great Britain that is prim-
arly interested in the cancellation of
our loans abroad, it is France. Italy,
Belgium, Siberia and the other allies.
The feet is, Great Britain is largely
in the same positions as ourselves.
We have loaned, roughly, nine and a
half billion dollars to the allies. Great
Fritain has loaned to the allies, rough
ly, nine and a quarter billions.
But in any all around cancellation.
Great Britain would only benefit by
the four and half billions she owes
us. and would lose to the extent OF
all the Allies owe her.
Net Result Uncertain.
This is of course subject to much
qualification. For example, the debts
due to Great Britain are in the form
of deprecated currencies. Just what
the net result of cancellation all
around would be It is not possible to
say with accuracy without more min
ute figuring than is here possible.
For example, Great Britain's loans
to Russia were over two and half
billion dollars, while our loans to Rus
sia were less than one-sixth as much,
about $l50,000.00O. Obviously the debt
that Russia owes to Great Britain is
pretty nearly 4 total loss already and
for Great Britain to cancel that debt of
two and a half billion dollars would
be merely gesture.
Great Britain would be canceiling a
Russian debt which is largely a total
loss already, Will, she would be the
beneficiary of our cancellation of the
perfectly good debt she owes US.
Accounts Intricate.
The accounts among the allies are
full of such intricacies as this and
Only an expert accountant could tell
just what the net result would be if
we should cancel our loans and then
Great Britain should cancel hers. But
there need be no doubt about the net
of it.
So far as cash is concerned, Great
Britain would stand to win little or
nothing by our cancellation of the
debt she owes US if she in turn should
cancel all that is owed her.
Would Affect Exchange.
Undoubtedly, a mutual cancellation
Of these debts all around would have
certain complex results affecting for
Gign trade and exchange. Since Great
Britain is so much more expert in this
line than we are, it can be taken fol
granted that she forsees these results
and would manage to profit by them.
But MI Austen Chamberlain, wher
he made that speech was not voicins
irritation because we have refused Il
hp he
bringing pressure to bear on us tc
cancel them now.
Simply Serving Notice.
Undoubtedly. what he was doing was
doing was to serve notice on the other
allies that inaSmuch as America vii
not cancel the loans she made Great
Britain will be unable to cancel the
leans, and therefore, France and Ital!
and the others must pay.
Mr.. Chamberlain's speech was mere
ly diplomatic way of calling the at
tention ol France and the other Eur
opean allies to an overdue account
Also. Great Bratain gets credit fol
willingness to cancel, while we ge
the odium of preventing it.
Financial Interest Small.
Of course it is true that while Grea
Britain's financial interest in our can
ceiling OF the loans is comparativel!
small, there are other reasons, anC
good reasons from her point of view
why she should want US to do it, Il
would have her the inconvenience O.
compelling the other allies to pay and
in other respects, especially as regard:
her foreign trade would be desirable
from the British point of view.
Mr.. Chamberlains revelation, tha
, Great Britain has already approached
/ us on this subject, ought to be no sur
prise. In the informal ways Of friend
ly conversation. many British states
: men, British editors and British lead
ers of thought have made this sugges
ton to American public men and jour
nalfstS.
1t has been made to the writer o
this article on more than one occas
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