Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-03-09
EARL OF BALFOUR
(Continued from Page One)

not for Great Britain, he insisted
upon the truth of this statement, IL
substance if not in form. and pro-
coded to give facts and figures in
substantiation of his claims.
In concluding his explanation, the
former foreign secretary said that
fl ON a strictly commercial view
point, Amba ssador Harvey's state
ments might be correct, but that: Il
for one, take less Of commercial
view Of the deal"
Lord Balfour opened his remarks
with an expression of the belief that
considering the momentous changes
which had occurred since his note
was penned. it would have been pre-
ferable to allow the matter to rest
but he thought the House would
agree that when person in the high
position of Ambassador Harvey pub
licly expressed the desire that the
present British government should
formally and explicitly remove mis-
apprehension. silence on his par,
would lead to a misunderstanding.
Quoting the clause to which Am
bassador Harvey had objected, Lord
BalfOur said he failed to find in the
words anything misleading or OBJ
scure. 1t was perfectly true that
they We're very compressed and that
without knowing the circumstances
OF the case, their full import might
not be easy to determine. but he
thought they did not deserve the
structures passed on them.
He explained that in the purchase
of war materials in America. after
America had entered the war. the
British case was differentiated
broadly speaking. both from the case
CT the other European belligcrents
and the case of America herself
Great Britain had two tasks thrown
upon her. either of which could be
withou teXternal borrowing, but she
was not in a position to accomplish
both at once. That fact. continued
the speaker, should surely surprise
nobody who remembered the enor-
nous loans Great Britain. had already
made to other nations before Amer
lea entered the war, and which she
continued to make afterwards.
In these circumstances the British
government suggested to the United
States that the latter should relieve
Great Britain of the first of these two
tasks,-in other words. continued
Lord Balfour. "as we had borne the
burden of financing all the European
allies during the earlier years OF the
war, until America entered, that
America might relieve us Of that part
of the difficulties"
1--WE explained to the American
government that we should be able
to find all the dollars necessary to
purchase our own war material
without borrowing from the United
States or anybody else. If the Amer
lean government had seen its way to
adopt this plan there would, or
course, have been no loan, and the
many international arrangements
would have followed another course.
But for reasons which l am the last
person to question. and which were
doubtless amply sufficient. the Amer
lean government declined to adopt
our proposals.
1.-The result was that Great Britain
had to borrow in America, using the
money thus obtained to pay Ameri-
can creditors and employing British
resources thus set free to aid Great
Britain's Allies. In other words, the
American producer obtained his
price, the American lender got Brit
ish security, and our Allies were help
ed through their financial difficulties
and we obtained their promise to
pay"
ut seems to me that this accur-
ately summarizes the phase to which
objection has been taken. l cannot
help feeling. however. that after all
there may he a deeper difference be-
tween the American ambassador and
myself on this subject than any mere
criticism or rejoinder concerning one
particular phrase in the original
document would lead one to expect.
I think perhaps, the difference lies
rather deeper.
1.-THE American ambassador. as
understand, regards the financial ar
rangements between the partners in
the great war as so many isolated
undertakings. to be separately con-
sidercd and carried through one by
one as occasion offers. This policy,
in his view. is necessary. il the sane
tity Of contract is to be maintained.
II. Myself, am inclined to a some-
what less commercial view. The
extraordinary circumstances of the
war, the magnitude of the co-opera-
tive effort made by the Allied and
associated powers might seem to re-
move the financial arrangements in
to sphere where the ordinary cate
gories of debtor and creditor. though
still valid. could hardly be deemed
to be a sufficiency.
Both these views could be held
by honorable men: I do not propose
to criticize them. still less to criti-
cize those who differ from them. But
one final observation ] will make:
If, as l suppose, it is the first of