, 1922-11-09
(By Edward N. Dingley)

Payment by Great Britain of q
large amount of money for interest
on her loans from the United States
government, and the near approach
of the final adjustment of the total
debt and the refunding of all wal
debts due the government. make the
story of American loans to foreign
governments both timely and inter-
esting.
When the first Liberty Loan Act
of April "a, 1917 was approved, au-
thorizing the establishment of
credit of three billion dollars in fav-
or OF foreign governments, the World
War had been in progress W. years
and nine months. On that very day
the American papers announced in
large headlines: German masses
crushed against new British line"
On the same day the French war mis-
sion, headed by Viviana and JOffre,
reached Washington.
The British wal mission, headed
by Arthur j. Balfour, Foreign Min
lister, had been in Washington three
days, and had informed the President
privately that the Allies YER In
need of help, both men and food. The
day on which that memorable o n
terence IA held, the American pa
pers announced that British smash
ed the e German line east of Ar
ras." Two days previous the news
was flashed to America that the
for the first time at Whey Ridge.
borne by a young Texan enlisted in
Canada"
The End Far Off
Outwardly the war was near the
end; but the members of the British
and French mission told the Presi-
lent a different story. The truth
dawned upon the country that the
real struggle was ahead. This Is
why the agents OF the Allies asked
for loans from the United States.
This is why Congress n the Presi-
dent granted them. True, the Brit
ish troops had reached the outskirts
of st. Quentin and "in seven days
had smashed ter German divisions"
which nothing checks the FRENCH;
however. Balfour and Viviana and
Joffre knew that the end was far
off.
The day after the authority to
grant credits were given the Secre-
tary of the Treasury, that gentleman
hand . treasury warrant or check
OF 5000, 900, 900 to Lord Cunliffe,
the Governor Of the Bank of Eng
land and a member Of the Balfour
party. Lord Cunliffe gave to the
Secretary of the Treasury a note for
an equal amount on behalf of the
British government, then took the
warrant or check to the British Am
bassador. Sir Cecil Spring Rice. who
Endorsed 1t owe to the United States
Treasury department. where It was
deposited in the Federal Reserve sys-
tenn to the credit Of the British GOV
eminent.
This piece Of paper representing =
credit of two hundred million dollars,
was the largest single check over
urAwn on the Treasury Of he United
States. Tho evidence Of the debt
was 4 single o made payable June
finally transferred TO the banking
house OF J. p. Morgan 4 Co.. taking
the place Of . private loan which
Great Britain had contemplated OBJ
tanning from J. p. Morgan Z Co.. on
securities OF the Canadian Pacific
Railroad.
]. p. Morgan I Co. up to that time
was the fiscal and purchasing agent
Of the British government: and sup
plies for the British government to
the amour Of two hundred million
dollars had been purchased by Nor
gan & Co. and delivered. May 3rd.
the United States government took
on the fiscal agency for the Allies,
displaeing J. p. Morgan 4 Co.
On the same day. Nay 3rd. and II
precisely the sams manner. . loan OF
$4,000. 900 was made Il Italy; on
May sth another S5O.ooo.0o0 was
made to Great Britain; and on May
Rfh N liam NJ an AOn nm ~~a ,mnAA
tn France; quickly followed by two
more loans OF &76.O00.OOO each to
Great Britain. and a second loan to
Italy OF $4,000. 900. also q loan Of
S46.000.O00 to Belgium and $780,
900 10 Russia.
A Phenomenal Faith
In thirty days, loans amounting 70
e73o. 900 . made to five Euro
pean governments. The security was
demand notes signed BY the accredit-
I'd representatives Of each county In
the United States, certified 20 By the
Secretary or State. II was the be-
ginning Of the most marvellous e.
hibitiea Of national generosity and
faith In humanity. the world ever
NV
November Is. 1881. three years
after the armist1ce, the United States
Treasury found itself With 81. O.
U.'s' or demand notes OF foreign
governments amounting TO nine and
= half billion. from Belgium. Cuba.
Cyechosiovakia. France. Great Brit
AIN. Greece. Italy. Liberia. Roumania,
Russia and Serbia. In addition there
were obligations or demand notes on
account Of sales Of surplus war ma
tertals. amounting to five hundred
and se~venty.four million dollars.
from Belgium. Cschostovakia. Es-
thcnia. France. LAtvia. Lithuanla.
Poland. Rounsnia. Russia and the
Serbs. Croats and 0%lovsnes.