The Pleasantville press. (Pleasantville, N.J.) 1912-1929, 1922-08-09
BRITAIN WILL PAY
WAR DEBT IN FULL
POLICY OF NO REPUTATION Is
ANNOUNCED TO FOREIGN
DEBT COMMISSION.
REFUMDIMG CAN NOW GO ON
Financial Experts Believe England's
Stand Will Do Much to Restore
Confidence and General Stability In
the European Countries.
BY N p.


Will not repudiate any part Of the debt
It 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
Its informative communication to the
debt commission is that international
credit is n of the material founda-
tions of present-day civilization and
that this credit could not be main
tanned in the future If any first class
nation should repudiate its war debt.
The decision Of Great Britain-it
should probably be referred to us a
p~olicy-was not a 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, 1t Is understood, made any def
The debt commission has unofficial in
formation to the effect that an inter-
est payment will be made during the
present summer or full and that 1t 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 ont 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 so, 1923. The authorities
here who are dealing with the subject
are not inclined to credit this infor-
nation. If they understand the Brit
1sh financial situation, the principal,
which amounts to S4, 166,31S,35S, 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.
E%nsIand'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 a
~far-reaching Influence on the financial
n 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
lions by Great Britain. These nations,
1t Is assumed here, will 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 $3.50, 1872, 9S3, not count
Ing unpaid interest, would hardly pro-
pose reputation of any part of that
debt after Great Britain had come out
for a paid-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 OBJ
stacle now in the way of going ahead
with the development of plans for re-
funding var debts. The director of
finance of the French treasury, Jean
V. Parmentier, who Is here for pre-
liminary conferences with the debt
commission, has not voiced any de-
sire on the part of France to have her
debt to this government scaled down.
A little later Great Britain will take
up the refunding question with the
debt commission, and the expectation
now is that a general refunding plan
will be agreed on.
Fixed Policy Will Help Europe.
American bankers who have recent
ly spent a good deal of time in Europe
are saying to members of the foreign
debt commission that the financial situ-
alton throughout Europe will I'M
doubtedly be stimulated by the adop-
ton of a fixed policy for dealing with
the wal 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 Reputation
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 let If
be KNOWN that she intends to paw
the United States every dollar she
owes this government, the worlds
war debt is to be paid with
in the next few years. 1t is barely
possible that Great Britain might be
able to make a considerable
on h principal during the present fis-
cal year, but the debt commission
would be surprised If that should be
done. AS for the other nations that
owe the United States, there Is no ex.
pectation here whatever of getting
anything on account in the near fu-
ture. What the new turn of affairs