The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-04-13
BRITISH TAKE
DEBT SERIOUSLY

Sir Robert Horne, chancellor of
the British exchequer, said recently
in the house of commons: 81 do
not propose to make any conditions
to the American government as to
the payment of our due obliga-
tions.' Spoken like a Briton. The
chancellor referred to the fact that
an understanding was reached with
the American government in 1919
by virtue of which the payment of
the interest on the British debt to
the United States should be post
poned for three years, and "as that
period elapses this year, we are
making provisions in the budget of
1929 to pay the half-yearly in
terest falling due in the autumn"
Sir Robert was asked to inform the
United States government that the
most convenient way to make pay
ment was for us to reduce import
duties on British goods, and this
induced the remark above quoted.
Thereehas been considerable loose
talk in this country in favor of per-
hitting European debtors to the
United States to pay with goods
instead of gold. The importing
interests, and in few ''theroycratic"
professors who live on salaries paid
out of endowments made by success
full businessmen, are the chief ad-
vocates of this sort of thing. A
program more demoralizing to
American industries. and American
labor could not well be imagined.
As Chairman Fordney once said, if
it came to show down we might
better cancel the foreign debt than
to permit this method of paying it;
but we shall do neither.
There is something over Sill
O00,000,000 due the United States
from Europe, or practically two
fifths of the Indebtedness due by
the United States to its own citi-
zens. Interest on this Indebtedness
is running at the rate of about
$500,000,000 annually. In 1921
this country exported to Europe
$780,, 100000 worth of goods, and
imported from that division $685.
100000 worth, or a favorable bal
ance of about 81 ,000,O00,O 900. Dur
ing the seven months of the fiscal
year 1922-July, 1921, to January
last-that balance has been running
at the rate of about $1,000, 100000
annually. The bulk of American
imports from Europe consists of
manufactured goods. Suppose we
continued under a policy of free
trade in order to permit Europe to
pay her debts to US. Let US assume
that we could keep up export to
that division at the rate of $2,000,-
100000 annually: On a strictly
merchandise exchange basis, in
order to wipe out the debt. The
United States would have to take
considerably in excess of $780,
100000 worth of goods annually
from Europe alone for a period of
over 20 years. Long ere that, there |
would be a pretty general closing
down of factories in the United
States, which would mean a terrible |
curtailment of the home market
for farm products.
The situation is admittedly diff
ficult. It is taxing the best brains
of the world, but any suggested
solution which makes this country
the goat will not be accepted by us.
Great Britain is finding the solution
by developing new markets and in
the creation of vast new wealth in
her domains and colonies. France
and Italy have like opportunities, in
lesser degree, but their indebted
ness is less, on the basis of ex-
change. It is stimulating to know
that the anglo-saxon mind is not
dismayed at the outlook and is |
thoroughly agreed as to its respon-
sibility. That goes far toward ex-
planning it's influence in world af-
fairs. Nations, like banks, have
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