Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1922-08-04
BRITAIN WILL PAY
WAR DEBT IN FULL
POLICY OF NO REPUTATION rs
ANNOUNCED TO FOREIGN
DEBT COMMISSION.
REFUNDING CAN NOW GO ON
Financial Experts Believe Eneland's
Stand VIII Do Much to Restore
Confidence and General Stability in
the European Countries.
By JAMES ?. HoRNADAY

BY JAMES p. HoRNADAY
Washington. The British empire
viii not repudiate any part of the debt
1t incurred during the World war.
Notice that this policy viii 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
its informative communication 10 the
debt commission is that international
credit is one of the material founda-
lions of present-day civilization and
that this credit could not be main
tained in the future If any first class
nation shoald repudiate its war debt.
The decision of Great Britain-it
should probably be referred to as
policy-was not surprise to the for
eign debt commission, but it has, Of
course, given the members of the com
mission genuine satisfaction
Great Britain has not up to this
time, it is understood, made any deh-
mite promise to pay at a certain time.
The debt commission has unofficial In
formation TO the effect that an inter-
est payment will be made during the
present summer or fall and that 1t is
altogether likely that the interest ON
tie British debt viii 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 30 1928 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 $4,166,31S,S5 can
/ not be paid now unless Great Britain
can borrow the money with which to
| pay 1t, and they have no knowledge of
sources from which Great Britain
could borrow such an enormous sum.
England's Decision Most important.
The authoritative announcement
that Great Britain intends to pay will.
/ it is believed by persons who are com
| petent 60 discuss the subject have a
! faT-reaching influence on the financial
and economic situation throughout
the world. 1t is assumed here, in the
absence of any authoritative informa-
ton from England, that the British
government, having decided to pay up
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.
IL is assumed here, win 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 $3,350, 762,9S3, not count
Ing unpaid interest. would hardly pro-
pose Reputation of any part of that
debt after Great Britain had come out
for paia-in-full policy
1t 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 oh.
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, Jean
Y. Parmentier, who is here for pre-
liminary conferences with the dehf
commission, has not voiced any de-
sire on the part of France to have her
debt to this government scaled down.
little later Great Britain win take
up the refdnding question with the
debt commission, and the expectation
now Is that a general refunding plan
will be agreed on.
Fixed Policy viii Help Europe.
American banker who have recent
ly spent good deal Of time In Europe
are saying to members Of the foreign
debt commission that the financial stu
alton throughout Europe will un-
doubtedly be stimulated by the adop-
ton of a fixed police for dealing with
the war debts. According to these
bankers, lack of confidence Is largely
responsible for the unsatisfactory
financial condition existing throughout
Europe. Up to this time persons and
concerns with large financial response
bilities have not known what TO ex.
pect In the future They have heard
much talk during the last two years
about the cancellation or population
Of all war debts, and this sort Of talk
has not served to stabilize conditions.
No one should get the impression
that, because Great Britain has lei il
be known that she intends to nav
the United States every dollar she
owes this government, the worlds
enormous war debt Is to be paid WIN.
10 the next few years. II Is barrel.
possible that Great Britain might be
able to make a considerable payment
on the principal during the present fis.
cal year, but the debt commission
would be surprised If that she Id be
done. AS for tie other nations that