Perth Amboy evening news., 1923-03-12
.HASKIN TELLS of CURTAILING
THE WORLDS GREATEST NOTE
Daily Letter by Frederic j. Haskin

our debt and of all other interna-
| tional obligations now outstanding.
Bond Values Rise
Already a very real and tangible
benefit has Injured to the American
people from the announcement of
the arrangement reached with Great
Britain. The British will accumu-
late dollar credits on this side Of the
Atlantic to meet their payments by
purchasing liberty bonds in this
ket. While holding them, pending
arrival of payment dates, they will
enjoy the interest. On the payment
dates, they will turn the bonds over
to the Treasury which will retire
them. 1t will be seen that this will
produce an annually increasing buy
ing movement in the American Gov
eminent security market. The whole
bond list already is up on this news
and every individual American bond
holder thus has Immediately reap
ed a realizable gain in the cash
value Of his holdings. Undoubtedly,
this plan of payment will keep the
bond list at a premium which grad
ually will increase.
This method of payment will cause
! the least arrangement OF foreign ex-
change, employ the British funds
profitably while awaiting payment
periods and stimulate the American
securities list. 1t is a good deal for
everybody concerned.
In all probability, France will be
the next debtor to be called into ne
~gotiation. M. Parmentier of the
French Treasury came over here
last summer as a special commits
sioner to talk about the French debt.
He was discouraging and explained
to the American Commission that,
despite the vast sums France is
spending on her Army, she will be
unable to pay a cent to the United
States for some years. M. Parmen-
tier further intimated that France
was a sensitive debtor and disliked
being reminded of the obligation. In
a word, she is willing to let the mat
ter drop for an indefinite period.
That a sterner attitude will be adopt
ed by the United States, now that
the British precedent has been set,
seems not improbable.
Rumania has entered into prelimi-
nary negotiations but has not pro-
ceeded far and the italian ambassa-
dor has had some conversations with
the American Com; mission. During
~ 5QillIAlO II Is Ilhely SOIlG dQQl-
tional arrangements will be made.
An interesting fact in connection
with the final settlement of these
foreign debts is that they will result
in the manufacture of the largest de-
nomination bonds in the history OF
finance. The Bureau of Engravins
and Printing at Washington is work
ing on the bonds for the British set
Element. AS the purpose of each
bond merely will be legally to rep.
resent the indebtedness, it need not
be in small, negotiable figures
Therefore, when the annual pay
kments Great Britain and the others
are to make are finally worked out
a single bond will be made to repre-
sent each years instalment. The
British bond will be in the denomi.
nation of $4,000. 900 and the last
one will be a single bond, just one
slip of engraved paper calling for the
payment of $175,000,0 600. Thu
Treasury will hold these in its vaults
and as each instalment is paid, the
bond, representing that amount, will
: be turned over to Great Britain and
" cancelled. Doubtless these will be
destroyed with considerable Leremon,
as they will represent the extinguish.
ment of a famous and significant
debt.