Great Falls tribune., 1922-04-25
A BRITISH VIEW OF IT
CIR GEORGE PA1sH is one of

CIR GEORGE PAISH is one Of
- the most famous economic ex-
perts In Europe. He has several
times visited the United States on
errands connected with our inter-
national economic and financial at
fairs. Therefore a recent article
of his printed In the Westminster
Gazette Of London will have spe-
cial interest in the United States at
this time when we are about to
pass new tariff bill with the
avowed purpose of keeping all for
eign goods from Europe out Of our
markets. Sir George Paish reaches
the conclusion that however much
Great Britain and Europe may need
our surplus goods they may as well
make up their minds to go without
them or seek them elsewhere for
the simple reason that it will soon
be practically impossible for them
to pay for such goods. This Brit
ish economic expert goes on to say:
"Since the early months of 1915
Europe has been able to pay in
goods for but small portion Of the
produce and goods supplied to her
by the United States, and in conse-
quence has incurred a great debt
to the American people, a part OF
which congress has now agreed to
refund into loans bearing rate Of
not less than ~ per cent and re-
payable within Is years. This
means a rate of interest Of possibly
4A or ~ per cent and a sinking
fund of at least 2H per cent, max
ing a total annual payment in re-
spect Of debt incurred to the Amer
ican government of 6M to per
cent per annurn. On the sum OF
about two thousand millions ster-
ling of government debt, this means
an annual payment to the United
States for sinking fund and interest
of about one hundred and forty mil
lians sterling, assuming par Of ex-
change. With the exchange depre-
ciated it would mean a much
greater sum in pounds currency.
Beyond Europe's debt to the Amer
lean government, however, Amer
ican bankers, capitalists, and in
vestors have purchased great
many other foreign securities upon
which interest and principal must
be paid, and 1t would be moderate
estimate to place the annual sum
accruing to America from the rest
Of the world, and mainly from Eu-
rope, for interest and principal at
two hundred millions sterling per
annurn."
Prior to the great war this au-
thority says that the United States
owed Europe thousand millions
sterling on which she paid interest
while now Europe owes America
about three thousand millions ster-
ling in balance. In order to pay
the interest on that sum Europe
must export to America 200 mill
lions sterling in goods. He con-
tinues: I'm the past seven years
America has exported produce and
goods to the value Of 8,400 million
pounds sterling, while her imports
have been Of the value of only 4,4o0
millions sterling, and she has had a
favorable trade balance on trade
account of 1000 millions sterling.
When allowance is made for the
interest due to her upon her foreign
loans, and the earnings of her mer-
camille marine in the latter part Of
the period on the one hand, and the
sums she had to pay for interest,
for services rendered and for tour
lists on the other, it is evident that
the real balance of trade has been
not much less than this excess Of
exports over imports. The task OF
now paying for this vast quantity
Of goods purchased by Europe on
credit would be onerous enough if
there were no longer need to buy
more goods on credit; but Europe
in general and Great Britain in par
ticular still need to buy produce
on credit. In 1921 the total exports
of the United States were valued at
900 millions sterling, while the
goods imported were worth only
500 millions sterling, and there was
again a balance in Americas favor
Of 400 millions sterling, plus large
sum for interest and services. I'm.
til 1920 America was willing tc
take payment for her excess ex.
ports mainly in securities, but since