Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-05
ENGLAND
ABLE TO PAY,
BANKER AYERS
Former British Treas
urer Suggests Delay
For Smaller Nations.
England Able to Satisfy
Her Debt to u. S. in
Full, Says Kenna.

New York. Oct. 4.-Definite post
ponement of any payment OF the oeots
owed the United States by European
nations, with the exception OF ENG
land. until the actual amount Whlch
such nations could ultimately pay, mas
been determined by conferences be-
tween the creditor and the debtors was
suggested by the Right Honorable Reg
inald McKenna. former chancellor OF
the British cxchequer, in an address
before the American Bankers assocla-
ton here Wednesday.
Mr.. McKenna also gave as his ppm
ion that Germany might be able 10
pay as reparations in the immediate
future about one billion dollars de-
rived from her foreign balances AND
the sale of foreign securities, such a
payment only being possible if all other
demands are postponed for a deflnlle
period to stabilize the mark. Future
demands at the expiration of that
period. he said, must be limited to the
annual amount of Germany-s export
able surplus at that time. The speak
er. who is chairman of the London,s
Joint City & Midland Bank, Limited,
said to be the largest bank In Great
Britain, gave his views on~the economic
aspects of Preparations and lnterna-
tional debts, how they are payable, the
general capacity of a. debtor country
to pay, and the effect of payment.
Not In Politics
While he stated that he was not in
politics and did not appear In any rep
resentative character as a Brlt1sh
banker. he argued that England has
the capacity to pay her debt to the
United States. and, he continued, Il
can unhesitatingly assert her deter
mination to honor her bond in full"
The question to be investigated IN
connection with the German repara-
tons is not Germany's capacity to pro
duce wealth but her capacity to pay
foreign debts.
Nobody has ever doubted Germany's
immense power to produce" he contin-
ued. but production by itself is not
enough. She must find q market for
her exports. We must remember
that an increase in her exports will
only produce funds for reparations if
there is no corresponding increase In
imports"
Germany has no present capacity to
obtain a surplus from the export OF
goods, he argued. Mr.. McKenna also
said he failed to see how additional
taxation can increase Germany's for,
eign trade and provide a large ex-
portable surplus.
Many Germans possess foreign as
sets, he said. They have investments
or balances in foreign banks the pro
ceeds of the sales Of marks which have
been flung on foreign market when the
mark deprecated in value under pres
sure of the reparations payments.
SAfo.,td DaI;oua prnaeura
Relieve this pressure he said
and the mark would Immediately I'm
prove. The mark has a far greater
value in Germany than it has OUTSIDE
and the German holders of foreign as
sets would have a clear advantag'
in selling them to their government
81 believe it would be safe TO pu
the total value of these assets at no
less than a billion dollars. - Nor
than that, I do not think she has tn,
ability to find, at any rate for
a long time to come" he said.
Touching upon the French debt t.
the United States in which Great Brit
ain is also interested as a Frencl
creditor, Mr.. McKenna stated tina
Frances external debt is far too grea
in relation to international trade pos
sibilities. He asserted that Franc
has no trade surplus or reserves o
accumulated anu eApOIIoDIC "CoiIh =
enable her to meet her present exter
nal liabilities. The mere endeavor o
France to extend her foreign sales t
the required degree would disorganiz
the trade of the world, he maintained
Debts Far Too Large
Inevitable CONCLUSION is" he con
tinued, that these international debt
are far too great for the capacity 0
any of the debtor countries excep
England. The whole subject require
q rational summing up by the cred
tors, who must keep steadily in vie'
the payment of these debts on tn
general trade of the world"
Mr.. McKenna stated as his conclus
ion that England has the capacity t
pay the United States interest an
sinking fund on her debt but that non
of the other debtors is in a position t
meet more than a small part of it's Ell
ternal liabilities. In the existing si
uation in Europe a definite postpone
ment of any'payment to them is desil
able in the interests of all the pal
ties, he said. The actual amount whic
the other debtors could ultimately pa
should, as in the case of Germany,
ascertained by inquiry into their e.
portable surplus at a full and fran
conference between creditors al
Iah+arc Ft"-