Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-04
BY FRANK H. SIMONDS.

w YITH the termination of the
n French debate over the
wv question of the war debts
one fact at last emerges
Viewed from the financial side, there
was no victor in the last war, and
measured by the continuing costs of the
conflict in taxes there is little to dis
tinguish the plight of the defeated from
the state of the successful If one
assumes that, as consequence OF the
Young plan, German obligations have
been fixed and the conditions of the
settlement will be met, one can with
fair accuracy summarize the whole
situation.
OF the great powers Immediately con-
cerned in the conflict, exclusive of the
Austrian empire, which has disappeared,
and the Russian, which is for the pres
ent out of count, Great Britain clearly
presents the worst case. Her national
debt, which was inconsiderable before
1914, today amounts to some $38,000,-
100000. If the Young plan and the
settlement with her recent allies guar
antees to the British reimbursement for
the sums to be paid to the United States
amounting to some $4,000, 100000, she
must herself shoulder the major bur-
den of $34,000,000 900.
The French condition is somewhat
more difficult to estimate, as conse-
quence of the fact that France has al
ready. by revaluing her franc, reduced
the total of her national debt by four
fifths. But one must perceive that this
process has amounted to no more than
capital levy. Despite this heroic
operation, the domestic debt of France
remains in excess of $4,000, 000, 900,
while she owes abroad sums which,
given the present value of her settle
ments with the United States and
Britain, stand at some $4,000, 000, 900.
AS France will receive from Germany
enough to discharge these debts and
something to meet her reconstruction
costs, she finds herself today with a
net domestic debt Of above $4,000, 000,-
600, as against $4,000 000,0 900 in 1914
and, in addition, she has lost an even
larger sum incident to the depression OF
the franc.
Germany, for her part, having paid
some $4,000 900 900 on account of rep
arations, is now bound to pay further
sum representing capital amount OF
$4,000, 100000, making total of $12,-
100000, 900 chargeable to the war. The
Young plan total Is several times
larger than the national debt of Ger
many in 1914 and, in addition, imitation
and reputation have resulted in a
capital levy even greater than that of
France, which has not only wiped out
the liquid capital of Germany, but has
doomed her to be debtor nation COM
mercially for an indefinite period.
What United States Shouldered.
Looking now to the situation of the
United States, it will be perceived that,
although we were late conner, only the
id Io1f
belligerency resulted in profit. At the
close of the war our national debt
had risen from nothing to $26, 5000, 000.-
600. Since that time we have paid on
approximately $9000,0 00,0 900, Of which
more than $1,000,000,000 was repaid by
allied debt service, but there remains
a total of very nearly $4,000, 900, 600.
AS against this sum, the present value
of the debt settlements is around ST.
O00,000,000. Thus we have still to find
in taxes the principal and interest of
100000
It is true that before we became a
belligerent we did enjoy period OF
prosperity and, through the sale of war
materials and foodstuffs to the nations
at war, we did add very considerably to
our national capital. No reasonable
and competent expert can, however,
support the thesis that our profits in
LldJ IlHle were ally uulS Inc JIG @Ao'
O00.000,000 in national borrowings
which we were left to pay off by
domestic taxation at the close Of the
conflict.
For the future, then, no modern in
dustrialized nation can fail to perceive
that any war must be for it a losing
venture on the financial side. 1t is
true that on our side of the Atlantic
q good deal is said about the gains Of
the European victors in territory. But
aside from the French profits incident
to the recovery of the rich mineralized
regions of Lorraine and the agricultural
assets Of Alsace. it may fairly be doubt
ed If any great power has found its
territorical acquisitions ANYTHING but q