The Republican journal., 1921-11-24
OUR FOREIGN LOANS.


allies s9,466. 283, III, in cash. There are
comparatively few people who are in
formed concerning the present status of
these loans, or what security, if any, we
have for their payment.
These loans are evidenced in the Treas
ary by certificates Of indebtedness all
payable on demand, Bear interest at the
rate of five percent AMI are in the follow
1ng form: "The Government --
for value received, promises to
pay to the United States of America, or
assigns, the sum of ---- on de-
nand, with interest from date thereof at
Che rate of five per cent per annum.
such principal sum and the interest there
on will be paid in gold toin of the United
States of America of the present stand
ard of weight and finances. at the Sub
Greasury of the United States in New
York or at the Treasury of the United
States in Washington" To the above is
added this statement: "This certificate
xgill be converted by the Government of
---, if requested by the Secre-
cary of the Treasury of the United States
of America, at par, with an adjustment
Of interest, into an equal par amount of
convertible gold bonds of the Govern
2nent of ---. Stipulated rates
of interest to be paid on these bonds are
also specified. Each certificate is signed
by somebody whose name is followed
with these words "For the Government
OF --." There is nothing to
show that the signer had any legal au-
1hority to thus bind his country to pay or
Eefund any of these certificates.
1t will be noticed that acceptance of
Ghe refunding clause in these certificates
of Indebtedness by our government was,
IN effect if not in fact. tacit agree
nent that the payment of the interest
accrued should be deferred until the debt
should be refunded. Our Secretary of
the Treasury began negotiations for re-
funding in 1919 and continued them in
1920 and now about four years have
elapsed since these certificates were ac-
cepted by US. The vast sums of money
loaned was put into the United States
Treasury by the people We had success
sive patriotic drives and thousands of
men and women borrowed money to loan
70 the government and before it had time
TO hit the bottom of the treasury vaults
It was loaned to the allies whose immed.
late financial needs were imperative.
American valor and American money
saved Belgium, France, Italy and Eng
land from German dominion and extor-
Sion. Owing to the pressure of war
necessity these loans were made in
manner at variance from the normal and
usual requirements of business. Never
&heless, these loans which we made
hastily, informally and lavishly, are debts
of honor and should now be refunded into
bonds duly and legally authorized by the
law making bodies of each debtor nation.
No one of them can be expected to pay its
total Indebtedness to US for many years.
IuCy tduy lIO"CNClS w no luCy dS1 ecu
and give US bonds instead of script and
We believe they can pay the interest on
the bonds as it falls due. These bonds
would be real asset to tine United States,
and should of course be long time bonds
carrying a rate of interest not exceeding
Eve per cent
ho
{ capitalists have invested millions of dol
lars in the bonds of these governments
which are most heavily indebted to the
Government of the United States. King
dom of Italy bonds. due in 1923 are quot
ed in our stock market eport at 81, bonds
of the French Republic due in 1915, at
par, Belgium bonds due in 1945 at about
par and bonds of the United Kingdom
due in 1929 at 95. There is no hint of in
esolvency in these quotations. On the
contrary they show that the credit of the
above nations is nearly on par with our
own. Not one of these has ever repu-
di ated it's financial obligations. We do
not believe any one of them intends to
sacrifice it's national honor now. A bill
Is now before Congress to authorize the
S ecretary of the Treasury to negotiate
for the refunding Of these foreign debts
Epto bonds. Action on this bill has been
deferred, pending the outcome of the
armament conference. There has been
suggestions that all war loans should be
cancelled, but these suggestions, almost
5f not quite all of them, have been the
propaganda of foreign boards of trade,
American importers and by American
private owners of foreign obligations
which are said to amount to four billion
dollars. The persistent propaganda of
these interests has encouraged the allies
to hope that cancellation of their wal
debts to the United States may become
an acknowledged fact.
Two men held up and robbed mes
senaer who was on his way to bank