The citizen., 1922-08-03
BRITAIN WILL PAY
WAR DEBT IN FULL
POLICY OF NO REPUTATION Is
ANNOUNCED TO FOREIGN
DEBT COMMISSION.
REFUNOING CAN NOW GO ON
Financial Experts Believe EnsIsnd's
Stand Will Do Much to Restore
Confidence and General Stability In
the European Countries.
BY JAMES p. HoRNADAY


Washlngton.-The British empire
Will not repudiate any part of the debt
II Incurred during the World war.
Notice that this policy will be adhered
to has been received by the World
war foreign debt commission, created
by the congress last February. The at
titude of Great Britain as set forth In
It's informative communication to the
debt commission Is that international
credit Is one Of the material founda-
tiOns Of present-day civilization and
that this credit could not be main
tained in the future II any first class
nation should repudiate Its war debt.
The decision Of Great Britain--it
should probably be referred to as a
pOlicy-was not surprise to the for
eign debt commission, but 1t has, Of
course. given the members of the com
mission genuine satisfaction.
Great Britain has not up to this
time, II Is understood, made any def
mite promise to pay at certain time.
The debt commission has unofficial In
est payment will be made during the
present summer or fall and that II Is
altogether likely that the interest on
the British debt will be paid in full.
Recently dispatches from London
have indicated that the financiers In
England are working out a plan under
which the principal Of the war debt
would be paid some time during the
present fiscal year. that is to say, be-
fore June 10, 1923. The authorities
here who are dealing with the subject
are not inclined to credit this infOr-
nation. If they understand the Brit
ish financial situation. the principal
which amounts to 81. 6,3lS,35s, can
not be paid now unless Great Britain
can borrow the money with which Ia
pay 1t. and they have no knowledge Of
sources from which Great Britain
could borrow such an enormous sum-
Ensland's Decision Most important.
The authoritative announcement
that Great Britain intends to pay will
1t is believed by persons who are com
petent to discuss the subject, have d
far-reaching influence on the financial
and economic situation throughout
the world. II Is assumed here. In tht
absence of any authoritative inforIna
ti0n from England. that the British
government, having decided to pay W
In full as soon as possible. will ex
pect the European nations that owe
her also to pay. A considerable part
of the money which the United States
advanced To Great Britain during the
war was lent to smaller European ma
tions by Great Britain. These nations
1t Is assumed here, viii be called on
by Great Britain to settle up when
they are able to do so. France, whose
war debt to the United States
amounts to $3,35O, 1872 ,9s3., not count
ing unpaid interest. would hardly pro
pose repudlation Of any part Of that
debt after Great Britain had come out
for a paid-in-full policy.
II is believed here that the stand OF
Great Britain In favor Of no repudia
ton of war debts will expedite the
work of the foreign debt commission
There would seem to be no real OBJ
stacle now In the way of going ahead
with the development Of plans for re
funding war debts. The director OF
finance of the French treasury, Jear
V. Parmentier who Is here for pre-
liminary conferences with the deb
commission. has not voiced any de
sire on the part of France to have hel
debt to this government scaled down
A little later Great Britain will tax,
up the refunding question with the
debt commission. and the expectation
now is that general refunding plar
will be agreed ON.
Fixed Policy viii Help Europe.
American bankers who have recent
ly spent good deal of time In Europe
are saying tn members of the foreign
debt commission that the financial stu
alton throughout Europe will un
doubtedly be stimulated by the adop.
tiOn Of fixed policy for dealing with
the war debts. According To these
bankers. lack of confidence Is largely
responsible for the unsatisfactory