Evening star., 1923-01-14

Prospects for success of the debt
conference for refunding Great
Britain's r-bi1lion-dollar debt to
er than now, according to those in
close touch with the conferees.
At the opening of this second, and
probably the last week Of negot'a-
tions. practically all preliminaries
have been cleared away between the
two commissions Congress, both
from the Senate and House side. has
decided to postpone consideration of
amending the restrictive debt fund
ing act until after the British leave.
A tentative understanding has
been reached by the commissioners
to proceed toward an agreement,
which in the judgment of both can
| be executed not only at present, but
carried out in the future. If this
tentative agreement oversteps the
bounds of the American law-and 1t
probably villa report on the mat
ter will be sent to Congress through
President Harding.
Plan to Sail Saturday.
The British are still making plans
to sail from New York on the olym-
prospects of spending two days. II
possible. in New York. -,
The next formal session Will take
place at the Treasury tomorrow morn
ing at IL o'clock.
Enough sentiment seems to nave
formed on Capitol Hill to assure ad,
ministration leaders that there VIII
be no considerable difficulty in OBJ
tanning ratification" by Congress OF
the terms laid down by the two com
missions. What Congress will DO
however, remains to be seen.
A mass Of data has been presented
by Great Britain, setting forth the
heavy British indebtedness, the pur.
densome taxation and the state or
tho empires exchequer
Seek Easiest Terms.
While there has been no talk of
Cancellation of Great BritainS debt,
but only of plans toward its pay
ment, the British have presented
eloquent figures showing why they
are asking for the easiest terms OF
necessity, lest, in the words of Chan-
cellor Raldwin's opening address, an
it might be impossible to meet In
years OF bad trade and falling reve-
nue."
Great Britain is carrying water on
both shoulders, the figures show, with
q heavy external and internal debt,
totaling about 7.700,000,000 pounds
sterling, and loans to her allies,
which Including interest accrued and
unpaid total more than 2,OOO,oo0,OoO
pounds sterling.
With the British debt to the Unlteo
States listed at about 1880 900, 1t
is evident that Great Britain has
loaned to her allies to date almost
three times as much as she owes
America. her only national creditor.
A considerable portion of those war
loans, Chancellor Baldwin descrloeo
as frozen" credits.
Roberts Discusses Situation.
The practical difficulties confronting
nations in these days in paying on
great International debts was dis-
cussed last week by an economist OF
national reputation, well known In
washington-George T.. ROBERTS,
fornser director of the mint and now
vice president of the National City
Bank. In the current issue Of the
bulletin of that institution Mr.. Rob
erts has these very pertinent re-
marks on the situation:
'aThe real problem exists In tne
practical difficulties that attend upon
the payment of great sums from one
country to another, and In diner
ent currency. It is not simply
question of the ability Of the debtor
country to collect given sum from
it's people by means OF taxation. II
! will collect its revenues In the cur
rency Of the country, but 1t cannot
pay the foreign debt in that medium
Moreover, il Is as true of the indebt-
edness to the United States as of the
reparations, that payment cannot be
made in gold to any important ex-
tent. but must be made In the prod
ucts or services OF the debtor coun-
tries Upon this point turns the ques-
tion of their ability to pay, because
we ourselves, by our national policies,
are disposed to limit the amounts
that may be paid to US in these ways.
@5O0.000, 900 Trade Balance.
Before the war this country had an
favor Of about $500, ,00o, 900, which was
practically offset by the so-ca1Ied in
visible charges running against us
for services of various kinds rem
dered by foreign countries. Inter-
est and dividends on foreign invest
foreign shipping, insurance charges
and commissions, remittances of for
eign-born residents and expenditures
Of American tourists abroad were the
chief items. classed as invisible" az
distinguished from merchandise ship
ments. With the exception Of the
last two these offsets presumably will
be relatively less than formerly. Our
private investments abroad probably
will Offset foreign investments here
and our own shipping will be a larger
factor in our trade. Altogether. If
we have actually become a creditor
country, we must expect to have an
adverse balance on merchandise ac-
count in order to square the whole
account. Our foreign debtors urge
that it will be impossible for them
to pay unless we consent to take
uore goods than we sell Our "a rIff
policv is criticized on this ground.
"That view is challenged by many
In this country, with various areu-
ments. It Is maintained in some
quarters that payments upon the
debts may be accomplished through
triangular transactions. by which the
European countries will send goods
to South America or tropical coun-
tries In payment for products which
the latter countries send here, these
products being of kind that We re-
oefve free as not competing With
ours This however,. would mean