The Washington times., 1922-10-05
ONLY
NATION ABROAD
NOW SOLVENT
Reginald McKenna Says That
Other Countries Can Only
Pay Part Of Debts.
BY LUTHER A. HUSTON,
International New Service.


lem Of adjustment OF international
debts is one "in which England and
America are equally concerned and
In which both have the same In.
terest as creditors" the Rt. Hon.
Reginald McKenna, former chan
cellor OF the British exchequer, told
the American Bankers Association
here today.
Great Britain will pay her debt TO
the United States, McKenna said.
but 1t was not roseate picture OF
world economic conditions that the
head OF the London Joint City and
Midland Bank, Lted.. one of the
strongest financial institutions In
Europe, painted to the 10000 dele
gates attending the convention.
The British financier frankly ex-
pressed the belief that England IL
the only European nation that can
pay her debts. The amount OF their
obligations that other Euopean
countries ultimately will pay, he de-
clared, must be decided at con-
ference of debtors and creditors.
|. Wants American Farley.
Analysts of McKepna's speech, in
view OF his remarks that England
and America are both equally con-
cerned' in the foreign debt prob
lem, saw in this declaration an
Intimation OF his belief that settle
ment of the debt question must
involve participation of the United
States in parley at which the
entire financial tangle Of Europe
would be Strengthened out.
Il have nothing TO do with
politics." McRenna said. "and do
not appear here in any representa-
tive character. l approach the ques.
ton solely from the economic point
OF view, and my endeavor Is to deter
mine so far as I can the limit OF
the debtors capacity to pay and the
effect Of payment upon the worlds
trade"
McKenna emphasized his belief
that economic facts must outweigh
political considerations in the solu-
ton Of the debt and reparations
problems"
Summarizing the amount OF for
eign debts. McKenna placed the
greatest Of these at S32, 900, 900,
600, the amount Of German repara-
tions fixed by the London ultima
tum. Frances debt to the United
States and Great Britain, he said.
was $1,000 ,o00.0 900, and 1taly's OBJ
legations to the same countries S4,-
500, 900 900. England, he said, was
the greatest creditor of European
continental governments.
Germany Can't Pay.
Germany's ability to pay repara-
tions. McKenna declared, hinges
largely upon the development Of
her "exportable surplus" Interest
from foreign investments and pay
ment for external surplus, such as
shipping, he said, must be included
as items Of exportable surplus. AS
Germanys foreign investments. the
confiscation Of her shipping and
the loss OF Alsace.Lorraine, the
Saar basin and the Polish provinces,
Germany's sources Of exportable
surplus have been greatly i'm.
paired.
'At no time was Germany's ex-
portable surplus sufficient to en-.
able her to make annual payments
demanded under the London ulti.
matum," McKenna declared. 1T
Is entirely out OF the question that
she could do so today.
Let me now come back to the
question Of what Germany can pay.
Certainly she can pay something
though not in the form nor under
the conditions It is now sought TO
impose upon her. Many Germans
possess foreign assets, whether in
vestments or balances in foreign
banks, and 1t would be a perfectly
practicable proceeding for them to
sell these assets to the German
government, who in turn could
hand them over to the reparations
commission. 1t is impossible to
give any precise estimate of the to-
tai value OF these assets, but I
believe 1t would be safe to put
them at not less than 81 200. .000, 900.
Whatever the amount may be, how