Evening star., 1926-02-03
600. and an income Of IS, ,oo0, 900 in ex
cess Of 100000"
Urges Conscrfption Of Wealth.

cess OF 100000"
Urges Conscrfption Of Wealth.
1.-The conscription of wealth in the
case of another war has been advo-
Gated upon all sides. The idea has been
approved by President Coolidge. Why
we not continue to conscript great
| wealth to the extent that such con
| scription has been in effect under the
provisions of the 1924 tax law?
"Our Debt Commission has refunded
| the debts of IL nations thus far. and
provision has been made for the can
collation. of every debt. and II is prob
able that every other debt also will be
ca nceled Therefore. the American
people must not only pay their own
| war expenses. but the war expenses of
European nations SO far as represent
ed by the loans we made them.
Debt Terms Disheartening.
Up to the present time our Foreign
Debt Commission has refunded the OBJ
legations of IL nations, involving debts
totaling nearly $4,000, 900 900, only so
per cent of which were war loans, the
remaining 40 per cent having been
loaned after the war had terminated
The terms resulting from the COM
missions refunding operations, so Tar
as the American people are concerned,
are discouraging, If not dishearteninS.
One OF the most favorable adjust
mentS was that made with Great
Britain. The amount due on account
of this debt. from Treasury state
ments. as of the date of refunding, De-
cember Is. 1922. was S47l5 81 900.
In this settlement it was agreed that
certain variable payments should be
made annually over a period OF o.
| years
In order to analyze and determine
| the full meaning of this accommoda-
| ton it is necessary to reduce these
| payments. as it were. to common
| denominator, that is, to determine the
| equivalent in equal annual install
| ments for the whole period, on the
basis of Az per cent interest. AS a
| consequence, IT appears that the total
payments of Great Britain. Of every
kind and nature on account of this
| debt during the G. years, is equivalent
| to CO equal annual payments Of S174-
| 478,000, or 81 per cent per year upon
the debt. And remember that this
rate of payment only will continue for
81 years. leaving nothing to apply
| upon the principal Hence at the end
of the sixty second year the debt Is
automatically conceled. as Great
Britains obligation then terminates
Compiled Table on Debt.
Senator Howell laid before the Sen
ate a table compiled by himself show
| ing that by the British settlement that
country would pay 10 the United
States over a period of 81 years what
amounts to 81 per cent interest on
| it's debt of $4,715,311 900, taking into
account every payment made, and that
| the principal of the debt would in eff
feet be Cancelled at the end of the
62-year period.
He gave figures also for the other
countries with which war debt set
Elements have been made, showing
| that Rumania would pay in the
same way what amounts to "a per
| cent interest on its total debt of $46.-
| $4,000. and that the debt would be
Cancelled at the end of the 62-year
period. Belgium would pay 21 per
cent interest on its debt of $483,426.-
! 900. and Italy, IL per cent interest on
its debt of $3.50, ISL 900, and the