The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-08-16
OUR BILLS RECEIvARLE.

OUR BILLS RECEIVABLE.
| The ways and means committee of
the house is engaged in a commenda-
the expenses of government. But one
important aid to this program appar-
emily is being neglected. This is the
European debt.
The present national debt is about
$23, 5000. 900. AS an offset to those
obligations there is owed the United
States from foreign governments over
$4,000. 100000. The effect on our
tax schedules. could that sum, or a
substantial part of it. be collected. or
even if regular payments of interest
upon it could be assured, would be
fundamental. The interest on the for
eign debt amounts to approximately
half billion dollars a year, and if it
could he promptly collected the inter-
est charges-on> our own national debt
could be reduced by that amount,
with a similar reduction in the annual
tax burden; while if arrangements
could be made for the amortization Of
the principal, a far more definite
financial scheme for the future could
be worked out.
Up to April Is, 1919, and May AIS.
1919, the dates on which interest fell
due in the spring of that year. the in
terest on cash advances to the allies
was paid in full. Since that time prac-
tically no interest has been paid.
The suggestion has come from many
quarters, chiefly foreign, that the
United States should cancel the for
eign obligation it holds as a part of
its contribution to the cost of the war
and out of sympathy for the sacrifices
made by the allies. Sympathy of that
sort is misplaced. The relations be-
tween the United States and England.
France and the other allies during the
war were of a strictly business nature.
The aid that we rendered their cause
in the crucial days of 1918 never was
allowed by them to obscure any op-
portunity which presented itself to
put a money charge against the
United States.
Great Britain charged us a very
substantial price for sending our
armies in her ships to reinforce her
line in France, and every ton of sup
plies for those armies paid freight
rates according to war prices. Our
camps in England were obtained with
good American dollars. II has been
authoritatively stated on the floor of
the senate that in France, likewise,
large rentals were charged for Aneri-
can army depots, camps and even bat
tie trenches. Fruit and other trees
damaged in battle were paid for by the
Americans. 1t has even been said that
American soldiers were charged one
price for goods sold to them, while
French soldiers paid another and low
er price. AS a matter of fart any
sympathy that may be extended to the
allies is more than offset by the graft
itude they owe the United States for
turning the tide of war when 1t was
running SO strongly against them.
The sinking fund estimate for the
fiscal year 1929 is $265,754,S64S7
Without those receipts from abroad it
would take about seventy-seven years
to retire our bonded indebtedness with
an annual sinking fund appropriation
OF that amount. But with the fund
ing of the foreign debt, and the sale
of the foreign bonds, together with
the refunding of the balance of our
bonded debt, exclusive of war savings
stamps, into a single series of long
term bonds running for fiyty years,
as has been suggested. a sinking fund
contribution each year of about $780,
100000 would cancel every bond at
tho end of that period. A further
saving of substantial proportions
could be achieved If the refunding
were to be conducted according to the
serial plan.
What an anomaly it is to go on tax
ing ourselves half a billion dollars
each year to make up the defalcations
of the allies on their interest pay
ments, with apparently no real effort
to collect either present or back In
terest, at the same time assuming that
the principal of the foreign debt will
be paid in time to apply the amount
on the reduction Of our own war
debt.