Evening star., 1921-09-04
History Refutes the Idea That Europe
Cannot Pay War Debt Owed America

load of public debt was regarded as an absolute
bar to national prosperity But the war with
France dragged out its weary length and when,
finally. the peace was signed at Utrecht, the
English national debt, instead of million
pounds, had grown to fifty millions.
Whatever of rejoicing there might have been
at the ending of the war was overshadowed by
the terror of this awful burden. There was no
one so optimistic as to look into the future
with anything but foreboding and despair
* X X X
England was still sunk in the deepest and
darkest of gloom when the war of the Austrian
succession came along and to meet its charges
the public debt was increased to eighty million
pounds.
Statesmen, fnanciers and economists were
contending among themselves how a nation
might best call in a receiver to liquidate its in
sufficient assets when with France broke
out again. and the national debt went rocketing
up to 40 million pounds.
Now the situation was desperate. indeed. and
1t was declared the end had come. To try to
struggle on with such a burden to pack. were
simple madness. 1t is true that here and there
were men who dfscerned and called attention
to the fact that during the years in which the
public debt had been pilng up at such an alarm
ing rate England had prospered amazingly and
that the national wealth had increased. if any
thing. faster than the debt.
+ X X
But the things they saw and made note OF
had little credence in the councils Of authority
Not with any hope Of redemption. but
drowning man clutches at straw, 1t finally
was resolved that England might .linger on
little longer II the American colonies could be
made to help carry the burden So the stamp
and other taxes were devised and proclaimed;
the American colonies refused to pay; the war
Of the revolution followed. and when 1t was
ended Englands public debt had grown to 240
million pounds.
While England was trying to figure how to
pay 240 millions without the colonies. when she
had despaired of paying 40 millions with their
assistance. she found herself in the midst of the
Napoleonic wars. the most costly up to that
time in human history. and when the Corsican
at last was safely banished to ST. Helena. Eng
land was 800 millions pounds in debt
X X X X
The years Of depression and stagnation
which followed the Napoleonic wars long ap-
peared to justify the direst prophecy of evils
to come in the train of national debt. That
England was bankrupt charged on every
hand. and England pleaded guilty to the indict-
ment There is little doubt that at that time
her liabilities exceeded her tangible assets. But
her intangible assets were yet to be drawn
upon. England was not bankrupt in morals or
in man-power. She had the will to work and
to pay. and there was not an installnent Of in
terest on this huge public debt. huge beyond
precedent In history, which was not met In full
on the 1sx 1t fell due. s..=.-.-. -
And not only did the English people, by
their industry and thrift, have the gold ready
to meet ths interest charges on the debt their
government owed. but their national wealth
kept pilins up - the wealth of nation had
ever piled up before. and within generation
after Waterloo they had expended in building
steam railroads alone as much money would
have served to discharge the public debt at the
end Of the American revolution.
i X X
So. 1t would seem. the story Of England and
her public debt ought to, disabuse our minds
Of any doubt that the great bulk of the money
owed this government by the governments Of
Europe can and in time will be repaid And
the question Of the form in which this repay
ment can be received without serious damage
to our own national prosperity remains the per-
tinent problem calling for consideration.
Copyright. 1921, By The Washington star.)