Evening star., 1925-07-05
England Proud of Her Debt Settlement:
Derives Immense Benefits TherefrOm

the way out is beginning to seem more pos
slble Of realization. 1t is true there is a large
army OF unemployed-1, ,250 600 is the latest
of1cial hgure-but when we come later on
TO examine this unemployment question in
detail we shall see that the situation is only
about half as bad as the figures would nd-
cate. 1t also Is true that British industry
and the British people heavily taxed,
heaVlIy taxed, in fact, that taxation is the
chief topic of conversation wherever you go.
III Is as much universal theme enforce
ment, or nom enforcement of the liquor laws
Is at home. But people get used
almost anything, and the British people
getting used to and adjusting themselves to
the taxes their government has imposed.
There is a lot of grumbling the taxes
like there is grumbling over the American
debt settlement, but it is certain that, taken
as a whole, the taxes levied with the
approval of the British people, else they
would not be levied. There hasn't been any
fundamental difference in the taxation pro-
grams of Ramsay MacDonald's laborite gov
ernment and the conservative government of
Stanley Baldwin.
Payments Comparatively Small
So far as the actual amounts involved under
the terms of the debt settlement. the annual
payments on principal and interest represent
a rather insignificant fraction Of the annual
British income. At present the annual pay
ments call only for slightly more than s160.-
100000, and the largest annual payment
within the 60-year period is less than $685.
100000. The payments this year will call
for tax the British people of less than
81 per capita. This is probably not more than
one-tenth the annual per capita charge the
American people subjected themselves to for
the purpose of making loans to Europe.
OF course the fact that this, charge is
piled upon already heavily burdened indus
try and people makes its weight more keeny
felt. The proportion of total British income
which is net profit is great deal smaller than
it used to be and British industry is forced to
meet keener competition In the worlds mar
kets than it ever met before The plant
equipment of all the world was greatly en-
larged as a result of the war; and it is
trying to find employment for itself. During
the war Americans got deeply into British
markets abroad and the Germans are
lighting tooth and nail to get back the mar
kets they had. If it wasn't for the tax
German industry imposed by the Dawes
plan, British industrialists would be warranted
in taking gloomy view of the future. That
is a chief reason why the Dawes plan is so
popular in England, and is big offset to
any ill-feeling that might have been engen-
dered by the debt settlement with America.
Must Get Dollar Credits.
The great difficulty in the debt question
is to find ways and means of converting
British assets into dollars at New York To
ship gold there is impractical, America
already holds approximately half of the
worlds available stock of gold. The Brit
ish would like to pay their debt charges
with goods, but their requirements compel
them to buy more goods in the United States
than they able to sell there. and the
necessity for settlement of the balances of
trade against them adds perplexity to their
problem. They have to get dollar credits.
therefore wherever they can. and re-
course is to buy such credits with profits
earned IN trade ELSEWHERE. Ihdt goes against
the grain. 1t would go against anybodys
grain.
This brings us TO the starting point of what
may be very great revolution in the whole
scheme of British trade and industry, which
may in a large degree revolutonize the
trade of the world, and profoundly affects
Americans in every walk of life 1t is diff
fcult to foresee what displacements may take
place and what readjustments be necessary
before world trade swings back to an even
No Animus Toward L. S.
Understand. there anImus toward
America in this threatened revolution. The
Britisher is governed by what he conceives
to he the hard necessities of the situation
He has got to pay America each year a very
considerable sum of money. He would like
to pay it with the goods he manufactures
in order to keep his factories running and
his labor employed. but the American Fro
tectiVe tariff system prevents the American
market from being open field for him
II he cannot sell America more. it seems TO
him that the logical course is for him to buy
less from America. He is looking around
therefore for other sources of supply for the
things he cannot produce at home and in