Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-20
TREASURY REVEALS
SUMS BRITAIN GOT.
Answers ChurchiIl's Denial
Of Melons Figures in De-
tailed Statement.

sess - - - 80 = = go
The Treasury Department today
issued formal statement concerning
the British account with the United
States, In answer to criticism OF Sec
rotary Mellon and American policies
voiced yesterday on the floor Of Par
lament by the British chancellor OF
the exchequer. Winston Churchill.
Without making any direct com
menf on the British chancellor's as
PERSONS on Secretary Mellon, the
Treasury statement outlined the re
ported expenditures of Great Britain
In the United States and how they
were met This showed that the
amount of net cash advances from
Britain's Gown independent resources"
was only $760, 128,929.62. instead Of
the $4,000, 100000 claimed by the Brit
ish chancellor.
structures OF Chancellor Churchill
on Secretary Mellon In the House OF
Commons were based on q recent let
ter Mr.. Mellon wrote to Frederick w.
Peabody of Massachusetts, explain
ing the attitude Of the American Gov
STuIlGuI On 1Ht6NSAAluuA 1ASpt0e IA ShAC
course Of which Mr.. Mellon had said:
"It must be remembered that Eng
land borrowed large proportion OF
its debt to us for purely commercial
as distinguished from war purposes
to meet its commercial obligations
maturing in America, to furnish In
dia with silver, to buy food to be re-
sold to its civilian population, and to
maintain exchange. Our loans to
England were not so much to provide
war supplies as to furnish sterling for
home and foreign needs and to save
England from borrowing from it, own
people"
Melons Letter UnnOdifled
In the face Of criticism Of this
passage OF Mr.. Melons letter by
Chancellor Churchill. Treasury ofii.
Gals, In the absence OF Mr.. Mellon
himself who is en- route to Europe
on vacation, indicated that they saw
no reason for changing the language
Of the Mellon letter.
The British Chancellor, according to
dispatches from London, declared this
was complete misapprehension Of
the facts In the case. The loans Were
for the purpose OF prosecuting the
war, he had pointed out, and the
United States Treasury had required
and obtained full justification for
every cent that was loaned.
Declaring that during the period
of American Intervention over 81 ,OO0,-
100000 had been spent by Great Brit
ain In the United States, the British
chancellor was quoted as having said
that OF the 81 ,000, 000, 900 Eve borrow
ed $4,000. 000.0 and provided In ad.
dition $4,000, 100000 from our own
independent resources. Out Of the
$4,000, 100000 we borrowed we spent
over $500. 900, 900 on munitions and
over $2,5O0. 200, 900 on cereals and
other essential foodstuffs =
Source Of Funds Disputed.
The Treasury Department in its
statement today indicated that much
OF the money reported by the chan.
cellor as having been raised by Great
Br1tain's own independent re-
sources" was in reality reimburse.
meRt from the other allies out Of
funds loaned to those allies by the
United States" III
From England's total reported en-.
penditures In America from April 6.
1917. to November /, 1920,p said the
Treasury statement, there should be
deducted the 1855, 900 900 experdi-
lures for which Great Britain was
simply the purchasing agent for the
other allies, and for which Great
Britain was paid by the other allies
United States. This amount was not
provided from England's independent
resources.
This leaves $5,366, 000, 900. OF this
amount, $1,682 900 900 represents lex.
change and cotton purchases The
greater part Of this expenditure was
Tor the maintenance Of sterling ex-
change not necessary for purchases
in America, but which enabled Eng
land to make purchases in other
countries at an undepreciated ex.
change rate; 81. 643 ,O00, 900 was for
food and tobacco.
A part OF this item is probably in.
cluded in the account out OF which
England was reimbursed by the other
allies and part was resold by Eng.
land to its own civil population. TO the
extent OF this resale England avoided
the necessity Of floating loans in its
own country. The sum of $5O7, 877, 900
was for interest and principal &c Eng.
lands commercial obligations rnatllr.
ing in America: 1851 900 900 was fol-
silver. The total principal advances
to England after the ar1nistice were
1881 .000. 900.
The total reported expenditures" Of
the British government In the United
States, according to the Treasury
statement. were $7,219. 408 ,669. 81, in
GLIDING the following items: NUM-
tions, including remounts, munitions
for other governments. exchange and
cotton purchases, cereals, other foods
tobacco, other supplies, shipping re-
Inducements. interest, maturities, re
lief, silver, food for northern Russia,
scellaneouss
Great Britain met this obligation
according to the Treasury, by the fol
lowing means:
other allies out Of funds
loaned TO those allies by
BY dollar payments By the 's',3 ~ ~ "a B,
tcr Brasis6 surTsncos 44s.4se.s27.5i
its Il gold from fHdis, B2.eos. ot
own independent re- IS
eouFcee's 200. 1Z8. 900 ks
Funded "a debt settlement o's1 S !.
with the United States. 4.014. Bic. 1854
Total I. $500. =. 2l0. 4oe 500. q
pEnnpn n lGuT IN TEYAc.