Evening star., 1923-03-10
Failed to Keep Pace.

learn what he could. without actual
in war.
Failed to Keep Pace.
Lord Balfour thought we should
have taken over this relatively small
amount. and l fancy his memory has
retained the impressions resulting
from the incident, while he has not
kept pace with the other vastly larg-
er transac ctions in which his govern
ment was not asked to assume any
responsibility whatever for allied pur-
chases tother than British) in our
markets.
Lord Balfour says, we explained
to the American government that we
should be able to find all the dollars
necessary to purchase our own war
materials without borrowing from the
United States or anybody else Ger
tainly no such statement came to my
knowledge. On the contrary, the need
Of borrowing dollars for British re-
quirements here (and even in neutral
countries) was always to the fore
in my contact with the subject.
British Bought Drafts.
Purchases with American funds
for allied accounts in neutral coun-
tries were accomplished indirectly by
making UP drafts in London offered
in Wall Street by neutral holders
|
cial agents bought these drafts with
moneys lent by US in order to pro-
tect sterling exchange rates. Private
as well as public drafts were thus
taken up.
"It is probable that some of these
drafts covered credits established by
Great Britain in favor Of other allied
governments. 1t was not possible to
distinguish the sources of the drafts
when originally purchased. In so far as
Great Britain may have thus financed
France or Italy in neutral countries,
giving British obligations for the
necessary funds to the United States
Treasury. the act was voluntary on
their part.
Advances to Protect Exchange.
"As the war progressed loans were
negotiated in some neutral countries
by Great Britain and France sepa-
rately, and also separate advances
were made by US to allies for pro-
tecting their exchanges in New York.
Lord Balfour seems to have con-
fused the supply of British goods on
sterling loans to the allies with the
supply of American and neutral goods
for which gold. or it's equivalent, was
necessary. ! can see nothing that we
could have done that was not done,
except to finance France, Italy. etc,
for their purchase OF British SooQS In
British markets. That would have
supplied Great Britain with dollar ex-
change which otherwise was SO sadly
lacking for British purchases abroad.
Perhaps Lord Balfour has in mind
this sort Of transactions.
~Let the Cat Die.
II do not remember that it was
seriously urged by British treasury
officials until some time in March,
1918, when a large part of the exist
ing debt had already been incurred.
That arrangement would have vio-
lated the spirit of the act under which
the President and Secretary McAdoo
so boldly discharged the heavy re.
sponsibility placed upon them by the
American people. Nor was it neces-
sary, as the event proved. since the
British government continued to fnd
sterling credits Tin paper money, sub
stantially) to cover French, Italian,
Belgian. Greek and other purchases
in Great Britain.
Now, that the two treasures have
settled the matter, harmoniously, IL
would be better in schoolboy lan-
guage. to let the cat die 50 II
seems to me-" =. !.