The Washington times., 1925-01-08
BRI AIN 8
CASE GOOD
EXA|NPL
Present Rise of Pound Sterling
Largely Due to Funding
of War Obligations
By WILLIAM HARD.

Five of the sixteen European
countries which owe us money
have now come to funding settle
nnents with US.
They are regularly meeting their
interest paymens to is, and they
are also regularly paying the sums
which we call payments on the
principals. of their debts to us.
Their interest payments and
their principal payments amount
only to reasonable interest pay
ments.
In any case, however, they have
settled with US and they are pay
ing.
These five countries are Great
Britain, Hungary, Poland, Lithu-
ania and Finland.
The principal sums which they
together have undertaken to pay
us amount in total to approx
n1ately four and tllree-quarters
billions of dollars.
IL Billion Due Us.
The total Of all sums( both princi-
PAL and unpaid ipterestl owed to us
by European governments Is some
twelve billion dollars.
1t will thus be seen that we have
come to funding settlements and 20
the regular receipt of payments on
some forty per cent Of the total debt
owed to US by governments in Europe.
The start toward this accomplish
ment was made by Colonel George
Harvey as our Ambassador to Great
Britain.
Immediately upon arriving in Great
Britain he proceeded to talk the
funding and the paying Of the British
debt to US.
Funding Would Help British.
He held that q funding and q
paying Of It would improve British
credit and enhance the value Of the
pound sterling and I'm every way
Increase the stability Finances ally Of
the Empire.
He found numerous prominent
British political persons talking about
ssdebt cancellation" Unlike some
ambassadors that we have had
abroad. he did not fall in with the
ideas of his hosts and become their
representative. He continued to rep
resent the ideas of the American
Government and he ultimately man.
aged to persuade his British hosts
and friends that the American Gov
eminent profoundly believed that a
funding and a paying of the British
debt to us was not only expected by
the American people but Woul !
bring forth great benefits to the
British people.
The result was the visit OF the
British Debt Commission to Wash
ington and the ultimate ratification
by the British Government of the
British debt settlement with us.
Pound Was Down to 1881.
When Colonel Harvey began his
debt conversations with The British
government, the British pound
sterling was worth 1897.
1t today is worth $4.76.
Colonel Harvey maintans-with
much support both here and abroad
that this. dazzling Improvement.
with all that it means for the re-
newed prestige and renewed fin
ancial and commercial power Of the
British Empire, is due largely to
the declaration and demonstration
of soIvency made by Great Britain
when she resolved to pay. and
began paying, her $4,000 900 900 of
debt to the United States Treasury
at Washington.
Walter Runciman, one Of Great
Britain's most distinguished states.
men, spoke the other day in the
House OF Commons regarding Great
Britain's debt settlement with us
and regarding the growth in the
value OF the British pound, and he
took the view that the improved
pound was caused largely by the
debt settlement and also that the
improved pound was in itself quite
fully worth the burden which the
debt settlement imposes upon the
British taxpayer.
Continent Follows Example.
The lesson thus taught began
soon to find its way from Great
Britain to the continent.
AHC 1OuI NuHlIuGnLaQ countries
which have settled with us-Hun
gary. Poland, Lithuania, and Fin
1and-have been actuated in Iarg,
part, it is believed in our Treasury
by a desire to improve their cur
rency and to improve their credi
in their dealings with priVat,
bankers from whom they hope t.
secure further loans from time t,
time.
In the cases Of three of thes
countries, the amounts which the,
owe us are small. in no case risinJ
70 as much as ten million dollars
In the fourth case-that of Pc
land-the sum is more consider
able, amounting to $4,000, 900.
In the midst of all her financia
difficulties-and really. in part, be
cause of them-Poland finds
worth while to assert and MAINTAIN
her solvency by beginning to pa.
small but certain sums every Jun