The New York herald., 1922-04-11

dition not only makes the payment Of
debt impossible but deprives the rest of
the world of one of its markets.
AN example is furnished by what has
occurred in Russia, and il Germany or
any other country is forced to accept
burden of debt greater than she can bear
she might be in such a position with
corresponding loss TO her creditors and
the rest of the world.
However, a low standard or living
Is not necessarily Incompatible with a
balanced budget and sound currency and
therein lies the chief danger OF compete
ton in the world markets. Unless other
countries could themselves lower prices
and wages their ability to compete would
be lost while if they could successfully
compete with, say, Germany. Germany's
ability to make larger reparation pay
ments would disappear. There are many
things, however. which Germany can
supply with advantage to the rest of the
world with profit TO herself and broad
solution of the problem of reparations
seems to be through such channels. to-
gether with fair competition in general
trade without substantial inequality in
the relative standard of living any
where"
Mr. Goodenough then produced tables
showing the pre-war and postwar debts
and where the were owed by the
United States, the United Kingdom,
France, Italy, Russia and Belgium.
wish particularly TO draw attention 10
one fact" he said. relating TO the DEBT
OF 1852, 2,o00,0 900 OF Great Britain to the
ur.ted States. The amount was bor-
rowed from America after she had en-
tered the war. During the same period
a somewhat larger sum was lent py
Great Britain to the Allies, in addition
to what she had already lent before thal
period. 1t is important to note that IL
Great Britain had not lent this sum TO
the other Allies 1t would have been UNI
necessary for her to borrow penny
piece from the United States. l do not,
however, wis.,. to suggest that Great
Britain should not pay this debt of
1852, 900, 900 for which she made herself
liable.
VIII Pay I'm Full.
my view has always been that Great
Britain inevitably will pay her debts in
full, even though incurred in behalf OF
others, but I feel that in such a case
America should not press US. but give
ample time for payment and lend
friendly hand In the matter of interest
by modifying the rates in the early days
while we are finding 1t hard struggle
to cope with the financial obligations
incurred during the war.
Nor do / suggest that Great Britain
refuse to remit some portion owing her
by European allies or Germany, unless
the United States also will make some
remission. Notwithstanding, It would be
for the common good of the world II
Great Britain and America would
come to some agreement on the economic
aspect of the problem"
Mr.. Goodenough's table represented
the debts in million units. each unit rep
resenting the amount of commodities
purchasable in pounds sterling before the
war. On this basis the debts were: United
States, 30.7 million units; United King
dom. 1913: France, 9S.2; Italy. PA.
and Belgium. go. This total allied debts
and reparations payments, his table
stated. are f10,600,000. not including
what Is due from Russia.
Then Mr.. Goodenough presented a
table showing the total exports and i'm
ports of the principal countries of the
world In 1913 to be f7.933,500,000
which he said at postwar values repre-
sented f15. 1867. 100000 1T is unneces-
sary to add" he said. that debts can
only be paid either from capital or from
income, the latter necessarily resolving
itself into payment through goods and
service.
"As far as payment from capital Is
concerned. I may reasonably conclude
that little or nothing further remains to
be affected under this head. | think the
figures show how impossible it is to ex-