New Britain herald., 1925-01-26

nations owing us money can be sum marked as follows:
 Armenia-No government rocog- nized.
 Austria-Payment Of loan extend- ed to l94S.
 Belgium-~plans to refund her debt but no overtures have vet been made, Interest has been paid on obligations arising out of the pur- chase of surplus war supplies.
 Cnba--ls tho only former debtor Of the United States which has paid It's debt and interest, The debt was s10.nOO, GOO.
 Czecho-Slovakia- Attcmps 10 ad- just payments have been intimated as near but no proposals have been made,
 Esthonia-lntends 10 refund,
 France-Regards debts as politi- cal and favors pooling of war ex- penditures and their allotment among allied states proportionately to riches of each one, according 10 Finance Minister Clementcl. Mora torinm and 90 years in which to pay are also reported. Ambassador Jur- sersnd has stated France will eventually pay In full. France has paid interest on obligations incurred after the armistice for purchase of surplus war supplies.
 Greece-The United States Great Britain and France agreed to lend Greece s5O,OOo,O0O to enter war with the allies, but full amount was not paid when armistice came. Greece has tried to collect the bal ance unsuccessfully. No move has been made to refund. 
 Italy-Stated two years ago it was ready 10 send representatives here to negotiate for a settlement but no action has been taken.
 Latvia-No proposals received.
 Liberia-No proposals received.
 aragua-Indebtedn not re- funded but payments being made.
 Rumania-Debts unified" but no payments made.
 Russia-No government rocognlz- ed.
 Jugo- o-SIavia-Has discussed debt with America but no payments have been made.
 The refunding arrangements with Britain, Finland and Hungary have resulted in virtual cancellation of millions of dollars of the debts. The original loans were on a basis of 5 and 1-o per cent interest, while funding has been on a basis of 3 and 3 1-2 per cent. Reduction of the interest rate has been a cancel lation Of money that otherwise would have been due and which the foreign buyers originally contracted to pay. But this sort of cancellation is not opposed in America as the original interest rates were regard ed as rather steep for peace times.
 The advantage of funding is that so long as a debt remains unfundcd, it is, in a sense, unfinished diplo- matic business and subject to diplo- matic negotiations which may not be directly connected with the in debtedness. The debt would thus become a diplomatic weapon. But a refunding agreement whereby both countries agree to abide by an amortization schedule removes the debt from the realm of diplomacy, eliminates the possibility of using 1t as a demand obligation, and makes of it q stabilized budget item. It also enhances the credit of the debtor.
 Most Of the unfundcd European debtors of the United States have indicated q desire 10 choose the bet ter system but have been decidely slow about it.
 While the American war debt is being gradually retired through period of 25 years without regard to differentiation of the 12 billions owed the government by the Allies, it will turn out that the present gen. eration of Americans will see the elimination of the American war debt while our European debtors arc still paying their debts to us, the program overseas being to pay dur ing q period Of approximately GO years or longer. This will leave a later generation of Americans in con tinued enjoyment of the. payments made by Europeans after the Amer ican war debt is wiped out. This fact has not gone unnoticcd in Europe. The suggestion has been made that as each debt is funded, the