The Topeka state journal., 1922-08-31
NTER-ALLIED DEBTS.


A cablegram from London an
nounces that Lloyd George has told
Colonel House that England would
pay her present indebtedness to the
United States "to the last farthing."
The disturbing question of wiping out
international debts therefore may be
regarded as settled
Apparently this is the view of the
earl of Balfour, acting British foreign
secretary, who recently addressed a
note on the subject OF inter-allied
debts to France thru the Frenchs am
1 bassador, and to other European al
liSs and associates of Great Britain in
the Great War, which contained a po-
lite invitation to pay up.
After calling attention to the fact
that these countries owe England an
| amount about four times her debt to
No international discussion has yet
| taken place on the unexampled situa-
ton partially disclosed by these fig
ures: and, pending settlement which
would go to the root of the problem,
his maJesty's government have SILENT
Inands upon their allies. either for
the payment of Interest or the repay
ment of capital But if action in the
matter has hitherto been deemed in
opportune, this IS not because His
Majesty's government either under
rate the evils of the present state of
affairs, or because they are reluctant
to make large sacrifices to bring it to
an end. On the contrary, they are
prepared, IL such a policy formed part
Of a Satisfactory International settle
ment, to remit all the debts due to
Great Britain by our allies in respect
of loans. or by Germany in respect of
reparationS.
policy difficult of Accomplishment.
With the most perfect courtesy, and
in the exercise of their undoubted
rights, the American government have
required this country to pay the in
terest accrued since 1919 on the
Anglo-American debt, to convert it
from an unfunded, to a funded debt,
and to repay it by a sinking fund in
twenty-five years. Such q procedure
is clearly in accordance. with the
original contract. His Majesty's gov
ernment make no cornpainf of it; they
recognize their obligations and are
prepared to fulfil them. But evidently
they cannot do so without profoundly
modifying the couprse which, in diff
ferent circumstances, they would have
wished to pursue. They cannot treat
the repayment of the AngIo-American
loan as II It were an isolated incident
in which only the United States of
America and Great Britain had any
concern. 1t is but one of a connected
series of transactions, in which. this
country appears sometimes as debtor
sometimes as creditor, and, if our un-
doubted obligations as a debtor are to
be enforced, our not less undoubted
rights as a creditor cannot be left
wholly in allegiance.
His Majesty's government do not
conceal the fact that they adopt this
change of policy with the greatest
reluctance. 1t is true that Great
Britain is owed more than it owes,
and that, If all inter-allied war debts
were paid, the British treasury would,
on balance, be a large gamer by the
transaction. But can the present world
situation be looked at only from this
narrow financial standpoint? 1t is
true that many of the allied and as
other, creditors or debtors, or both.
But they were, and are, much more.
They were partners in the greatest in
ternational effort ever made in the
cause of freedom; and they are still
partners in dealing with some, at least,
of its results. Their debts were in
CURED, their loans were made. not
for the separate advantage of partic-
ular states, but for a great purpose
common to them all, and that purpose
has been, In the main, accomplished.
To generous minds 1t can never be
agreeable, altho, for reasons of state.
1t may perhaps be necessary. to re-
gard the monetary aspect OF this great
event as a thing apart, to be torn
from its historical settling and treated
as no more than an ordinary COM
mercial dealing between traders who
borrow and capitalists who lend
But the policy hitherto pursued by
this country of refusing to make de-
mands upon its debtors is only toler-
able so long as II 10 generally accepted.
1t cannot be right that one partner
in the common enterprise should re-
cover all that she has lent. and that
another, while recovering nothing.
should be required to pay all that she
has borrowed. Such a procedure is
contrary to every principle of natural
justice and cannot be expected to
commend itself to the people of this
country.