Evening star., 1929-04-18
The British War Debt.

1t appears that the reparations dis
cussions now tapering to finish at
Paris are not the only debt-revision
plans under way in Europe. This weeks
proceedings in the House Of Commons
revolve chiefly around the British war
debt to the United States. That tidy
little obligation, the principal of which
is $4,074,S18,358, and funded interest,
$525, 5,181, ,64i, became the basis Of the
Mellon Baldwin funding agreement at
Washington ON June 10. 1928.
The British debt is by far the largest
owing to the United States Treasury,
accounting for more than forty per
cent of all the obligations due us from
our war associates, and was the first
one to be funded. For six years John
Bull has been faithfully fulfilling his
burdensome duty under the funding
settlement, calling for the semi-annual
discharge of heavy interest and sinking
fund payments. The British assented
to terms which turned out to be far
more onerous than those which the
United States in the meantime has ex-
acted from our other European war
creditors.
Discussion in Parliament was pre-
cipitated on Tuesday by a speech from
the one-tine Labor chancellor of the
exchequer, Philip Snowden. Mr.. Snow
den declared that the Labor party and
the ephemeral Macdonald cabinet Of
1924 had never subscribed to the famous
Balfour note Of 1922. Therein Great
Britain announced that she would coll
lect from European nations only enough
Of the war debts owing to her to cover
British payments to the United States.
/. Yesterday two conspicuous members
OF the Baldwin government, Sir Austen
Chamberlain and Winston Churchill.
bitterly assailed Mr.. Snowden's state
ment. They accused the Laborites of
fostering policy of reputation which
would imperil British world prestige.
To that taunt Ramsay Macdonald, the
Labor leader, forthwith retorted that
his party in no wise cherishes the notion
OF repudiating British debt covenants.
The motive underlying the Conserva-
tive ministers attack on the Labor
group presumably is the supposition
that the Macdonald cohorts, now the
second largest parliamentary faction,
are thinking Of waging the impending
general election campaign on a plat
form of revision of Britain's American
debt. The funding of that gigantic
obligation is a matter of direct concern
to every Briton, for the annuities which
have to be met at Washington comprise
q very considerable item in the bill the
British taxpayer has to foot.
1t is expected that Premier Baldwin,
when he addresses the House of Com
mons today and outlines the Conserva-
tive party's election program, will dis
cuss the American debt 1t was funded
here under his personal auspices.
Though no responsible British states
man would publicly avow it, the terms
Of that settlement rankle INCREASINGLY
in John Bulls breast. In that breast
are latent longings that some day the
settlement viii be reconsidered and to
Britafns advantage.
While 1t would not become British
dignity to beseech Uncle Sam for such
revision, it Is an open secret that
concessions not only would be welcome,
but are considered by the average
Briton as right which cannot, and
should not, permanently be withheld
by "the richest Nation on earth"
Coupled with this belief is the expec-
tation that sooner or later all war debts
will be pitched into common pool and
either Cancelled all around or be radi-
cally revised"