Evening star., 1923-03-01
ENGLAND AROUSED
BY CHALLENGE OF
HARVEY ON DEBT
Continued from First Page. }

history; it bore with It enhancement
of mutual respect and, / firmly be-
1ieve. the everlasting friendship of
the two great nations to which the
entire world looks for the the pres
ervation of solvency 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 minor
The undertaking. he added. could
not have been regarded in any other
light than that of a devastating fail
Gre II the agreement should not win
the appreciation and measurable sat-
isfaction of the millions of people
who comprise the British empire and
the American republic. That object
has been obtained"
History of Loans.
The great majority in Congress
presented conclusive evidence of un-
mistakable qualification in the United
in Great Britain afforded eloquent
testimony to the sense of relief, even
joy:
The United Kingdom" said the
ambassador, continues to rest on
the rock of financial integrity and
national honor"
Recounting the circumstances under
which the debt was incurred, Mr..
harvey salu tnat the pressing need
when the United States Joined the
allies. was for munitions. clothing
and food, which the United States
was able to supply, but the process
was less easy than might be sup
our treasury had no available
funds" he explained, "and could OBJ
tain adequate sums only through
taxation and the pledging of its
credit. Both methods were adopted
10 ho ipnif of &c rit
Ambassador Harvey combatted the
assertion that the United States had
refused to make huge advances to
the other allies unless payment was
guaranteed by Great Britain, declar-
ing:
Great Britain was never asked to
guarantee and never did guarantee
The payment of single dollar loaned
any country other than Great Britain
The United States according to the
ambassador, voluntarily gave pledge
that Great Britain should not be held
10 account for any portion of the
supplies delivered to her representa-
ives for transportation to or to be
used by another ally.
u. 8. Forced to Borrow.
I'm point Of fact" he continued,
"a very considerable percentage OF
the debt of Great Britain to the
11nited states was III thS
pnrchase of food and clothing for
neople living in England"
Mr. Harvey pointed out that the
f3rst advance made by the United
states to any ally was hundreds OF
millions of dollars to Great Britain
TO enable her to discharge pressing
obligation and maintain her wan
inc. credit, and also that the United
states had released to Great Britain
a huge amount of the highest class
honds and shares as security.
The obligation thus discharged
added Mr.. Harvey, CONSTITUTES part
of the debt which Is now funded. and
the British government still holds the
securities. Surely asking for the
repayment Of such a loan could not
rightfully be regarded as an act OF
q Shylock demanding his pound OF
fIesh."
The ambassador told his hearers
that the United States had been
obliged to borrow $4,oo0,oo0.ooo be-
cause it had loaned fs50,00o,o00 to
England and also that the United
states had borrowed and loaned to
the other allies $4,000, 100000 addi-
tional, on which, it had received nc
interest, while still paying at the rate
of ~ per cent-over $3.50, 900, 600 yearly
vearly as well as taxing its own.
He pointed out the interesting fact
tiiat the cost Of the great war in money
ke The naita3 Slater and Great Britain