The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-03-01
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Ambassadors Says Refunding
Agreement Is First Settle
ment of Vital World Prob
lem Since Armistice.
Viii Add to Friendship


London Feb. 2s.-LP)-Ambassado
George Harvey. speaking at u dinner
of the Pilgrim tonight, given in hon
or of Stanley Baldwin. chancellor Of
the exehequer, said in regard to the
debt refunding agreement:
I'VE have met 10 celebrate a great
achievement. | do not think | ex-
aggerate when l pronounce it the
first conclusive settlement OF really
vital world problem since the armis-
tice. 1t involves far more than the
greatest financial transaction re-
ported in history. il bore with IL
enhancement Of mutual respect and
I firmly believe. the everlasting
friendship of the two great nations 10
which the entire world looks for the
preservation of solvehcy and stability
which are essential to the prosperity
and happiness of all mankind"
The task was one of appalling mag
nitude. said Mr.. Harvey. and the ad-
justment of terms relatively minof,
THE undertaking. he added. could
not have been regarded in any other
light than that of a devastating fail
IRE II the agreement should not win
the appreciation ana measurable sal
isfaction Of the millions of people who
comprise the British empire and
the American republic. That object
has been attained.
National Honor Secure.
1.-The United Kingdom" said the
ambassador. continues TO rest on the
rock of financial integrity and ma
tional honor.
Recounting the circumstances under
which the debt was incurred, Mr..
Harvey said that the pressing need
when the United States joined the
allies was for munitions. clothing and
food. which the United States was
able 70 supply. but the process was
less easy than might be supposed.
our treasury had no available
funds. he explained. and could OBJ
tain adequate sums only through tax
alton and the pledging OF its credit.
Both methods were adopted instantly
TO the limit Of its capacity.
Ambassador Harvey combatted the
assertion that tho United States had
refused TO make huge advances to tie
other allies unless payment Wa gu Il
anteed by Great Britain. declaring; "
Great Britain was never asked ~
guarantee. and never did guarantee
slle raym~ut - zilEle calae ioaned
by the United States FOR the use OF
any country other than Great Britain
herself"
British Not Held to Account.
The United States. according to the
ambassador. voluntarily gave a pledge
that Great Britain should not be held
TO account Of any portion Of the sup
plies delivered to its representatives
for transportation to or to be used by
any other ally.
In point of fact. he continued, "a
very considerable percentage Of the
debt of Great Britain TO the United
States was incurred in the purchase
Of food and clothing Tor people living
in England
Mr.. Harvey pointed out that the
first advance made by the United
States to any ally was hundreds of
millions OF dollars TO Great Britain
TO enable il TO discharge a pressing
obligation and maintain its waning
credit, and also that tho United States
ha release 10 Great Britain a huge
amount OF the highest class bonds and
shares a security.
The obligation thus discharged, -
ADDED Mr. Harvey. constitutes part
Of the debt which is now funded. and
the British government stiil holds the
securities. Surely. asking for the pay
ment of such loan could not right
fully be regarded as an act Of a Shy
lock demanding his pound Of flesh "
L. ;. Obliged 10 Borrow.
The ambassador told his hearers
that the United States had been oblig-
ed TO borrow $4,000. 900 00o because
It had loaned $50. 900. 900 pounds to
England and also that the United
Sfates had borrowed and loaned to the
other allies So 900 900. o00 additional,
on which il had received no interest.
while still paying at the rate OF IL
per cent-over $3.50 900. 600 yearly, as
well as taxing its own people.
lie pointed out the interesting fact
that the cost OF the great war in
money to the United states and Great
Britain was about the same--i0 600
100000 sterling in cash. rcmarking;
THE human mind cannot comprehend
n sum so colossal, but nobody here,
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