The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-08-24
British Debt No Relation to
That of Rest of Europe.
Secretary Mellon in Answer to
Numerous Inquiries.
NO DEMAND TO ENGLAND
Will Not Be Asked to Guarantee
Obligations of Others.
Advances Were to Cover Pay
ments for Allied Buying.

Washington, Aug. 24.-Funding of
the $4.135, 5000 war debt owed by
Great Britain to the United States was
declared today by Secretary Mellon to
have no relation to the war loans
made by the United States and Great
Britain to other governments or to
questions arising in connection with
PREPARATION payments of the former
central powers.
The treasury secretary made his
declaration with respect to the Brit
ish debt in a formal statement issued,
he said. on account of numerous in
quiries reaching the treasury as to
exact status of the obligations of the
various European governments held
by the United States with respect to
published and statements made in
some quarters. Mr.. Mellon said that the
British liability was not incurred for
the .EFitish government but for the
other allies and that the United States
in making the original arrangements
had insisted in substance that tho the
other allies were to use the money
borrowed it was only a British security
that the United States was prepared
TO lend it.
I'm answer to these inquiries" Mr.
Mellon said. cit should be said the
obligations of foreign governments in
question had their origin almost en-
tirely in purchases made in the United
States and the advances by the United
States government were for the pur-
pose az. covering payments for these
purchases by the allies.
Cover Its Own Purchases.
f'The statement that the United
States government virtually insisted
upon a guarantee by the British gov
eminent of amounts advanced to the
other allies is evidently based upon
nrisapprehension. Instead of insist
ing upon a guarantee or any transac-
tion of that nature the United States
gdvernment took the position that IL
would make advances to each govern
ment. to cover the purchases made by
that government and would not re-
qqire dny government to give obIiga-
tion for advances made to cover the
purchases of any other government.
Thus, the advances to the British gov
eHhmept evidenced by its obligation
were made to cover its own pur-
glasses"
!AIr. Mellon quoted from a memoir
andum handed the British ambassador
by the treasury in June, 1918, setting
forth that the treasury deemed it a
cardinal principle that each allied
government should give it's own obli-
cations for commodities purchased"
and from another memorandum hand
ed-the British ambassador in June,
1920. which said:
1T has been at all times the view
of the United States treasury that
questions regarding the indebtedness
Kingdom of Great Britain and ireland
TO the United States government and
the funding of such Indebtedness had
no relation either to questions arising
. concerning the war loans of the
United States and of the United King
dom TO other governments or Ques-
tons regarding the reparations pay
ments of the central empires of
Europe"
Clear Up Views.
These views were expressed con-
stantly to. representatives of the Brit
ish treasury during the period when
loans were being made to Great Brit
ain. the memorandum added. Some
treasury officials were inclined to the
view that Inquiries as to that status
of the British and other foreign OBJ
legations had been made as a result of
the recent note of the Earl of Balfour
to the nations in debt to Great Brit
ain declaring the inter-European debts
were inseparably linked with interna-
tioaal indebtedness to the United
States