The Washington times., 1925-01-09
DEBT PAYMENT
To j. S. Tres
BRITISH
Noted Finanoier Says People
Pay Big Tax to Meet
Charges Here

Muo U0oW 6HUOOttD LT6HtG0 OF TIE
United States, and there Is no
deiayt'tg that the debt settlement
has givest rise 20 Gmti-A MericGt
sentiment IN En1LGspd. Herewith
Is presented an article BIZ Sir Leo
ChSoSzG Money, noted English eco
atoAstst, setttatg forth the British
viewpoint, Nth rather more re-
servo than Il Is generally pre-
SCnte6:
BY SIR LEO CHIOZZA MONEY,
Noted British Economist.
! Written for international News Ser
Vice and LOnd0n Daily News
tCOpytieht, 1913. By international
News sSFvice)
LONDON. Jan. s.--An ally il
friend and helper. When natioRs-
/ are allied in q war, and, having
| varying resources, contribute IN.
equally In the waging OF the war,
i how should they treat one another
when the war is ended? Un1ortu.-
hately Tor u. the question 10 not
an academic one. Let a. set out
plainly the main facts relating TO
the CHIEF allies. contributions In.
i mutual aid In 1D14.191E, and lot
those facts speak Cor Themselves.
| Britain, France and Belgium en-.
tered the war on August 4, 1914,
and continued It until the end, No.
vember IL, 1918, period Of four
| years and three months. Italy en-.
tered the war on May %, 1915. The
United States came In on April 3.
1917. 90 that the American partici:
| patton was limited to q period Of
L ava Ny0e1 nVaA shxyavN VrnMrR The D&fdts
| to coming in, the United States had
anlassed huge profits as q neutral
+-as she was entitled to do.
Had 10 Build Army.
As the United States possessed
4 very tiny army, she had to create
/ q new biz one, and she did the thing
4 fore u was ready, however, but on
/ July II, 1918, was able to state
! officially in Pertinent that the num-
Der OF American troops brought to
Europe IN April, May and June, 1918:
Il was $4,000, OF whom 33l 900 had
/ been carried in British ships.
BY the end OF the war the Amer
Il lean army was raised to seven fig.
ures, but, as It could only take part
in the later engag enents, the number
OF American soldiers killed or pre-.
sumed killed, because finally missing,
4 was, we are glad to know, no more
than 1000. II the war had lasted
for another year, or more, AZ was
In 1918 thought only too likely, the
American soldiers would undoubtedly
have suffered severely. Nevertbe.
less, the tact remains that they
fortunately were not called upon 60
do much, and their casualties may
not be compared with the 946,0O0
British killed, the 1,40O, 900 French
killed, and the 100000 Italians killed.
Economic Contribution.
Next, a. to the economic contribu-
lions.
Britain had to carry men, ami
/ mails. food, munitions and stores
/ Tor ell the Allies. for she was the
| great sfaipowner. We were good and
generous Allies In this matter OF
ehina, and we lost seven million
tons Of shipping through enemy at
tack. In 1918 we had to sacrifice
our accustomed trade routes and to
adopt the scheme of Atlantic Con-
Icentration, which, in concert with
the navy. defeated the submarine.
So we had to risk our shipping
trade and TO see foreign Shipowners
running In our abandoned routes:
As TO commerce, We put to hazard
the greatest oversee trade in the
world. That, OF course, 10 why we
have a million unemployed; our
enormous expenditure upon them is
really a continuing contribution to
the AlliGS.
Further, 10 sustain the European
A:lie9 in the war, ;Srttair advanced
Ito them a sum whic.l Inay be rO0Nd-
lly put at $4,000 100000, the chief
Items being, as accrued to this
date, France, $4,000. 900, 600; italy,
81, 700, 900, 600; Belgium. 81, 500, 900 900,
and Russia, $1,000. 100000
Opportunity Small.
America, who, as we have seen,
had comparatively small oppor-
| tunity to take part In the actual
fighting, did great services by lend
ing money (which meant, OF course,
food, munitions. and stores, at war
| nrices) to her European friends.
She also lent, roundly. So 300, 900, 900,
OF which $4.250, 1000, 900 NOW, with
Accretions, $4,000, 900 ,00O) were lent
to Britain. This sum was not bor-
roWed by us for ourselves, however,
and we did not need it. We bor-
rowed t. to enable US to lend to our
European allies. That Is to say,
| this $4,ZOV,VUV,VVU IS, TOuH0lyS plIS'
i half Of the $4,000 600, 900 lent by us
to European nations.
we have very duly met our
American obligation. The American
Government holds our formal bonds.
Twice year we pay interest, and
yearly we pay an lnstallment OF
principal. On June 16, last, we paid
SOS, 500 900, and on the 18th OF this
month we paid $780, 900. The
word OF our bond is payment In
dollars" and, therefore, the actual
amount paid varies with the rate
Of exchange. The years payment
is thus $166, 900, 900. And so we are
to proceed. IL we survive the
process, for sixty.two years.
Big Income Tax.
That means an income tax, spe-
cially paid by the British income
tax payer to America, OF about
seven pence in the pound.
In short, the European Allies, not
having paid up, the British govern
ment has to pay up for them, and
this 10 tho point which, / find. IL
understood neither at home nor
abroad. The balace OF money which
was lent by us to the allies was
first borrowed by the British gov.
eminent from British lenders, and
as the allied governments will not
furnish the British government with
funds 10 pay back those lenders, the
ray1t1eh ernvArnTnnnt. has DrefOrce,