Evening star., 1939-06-07
Foresees Attempt to
Cancel British Debt
Suggests War Loans Be Paid
By Issuing Empire Bonds
To This Country

To the Editor of The Star:
The King and Queen are coming to
visit us and we will wish to give them
warm and happy welcome. A genuinely
cordial reception of them should gen.
crate greater reciprocity Of kindly feel
ing for us in the British Isles, and as we
have been assured that the visit is purely
social one, let us be sure to keep it so.
At the same time, however, there is al
ready evidence that the British govern
ment feels this is an excellent time to
settle" its debt of five billions which it
owes poor Uncle Sam (Which means you
and me, and our families) at what is
tantamount to insolvency or bankruptcy
rates.
In the days of Mr. Hoover we cut the
debt OF nine or so billions practically in
halves, an entirely needless piece of gen.
eroslty, as 1t has turned out as for many
years they have paid nothing on capital
or interest. In fact, the British while
acknowledging its accuracy, have simply
ignored it lock, stock and barrel
Now, however, the British see that they
may wish to borrow again from us and
this they cannot do thanks largely to
Senator johnson and the johnson bilD
until they have settled their old account
an excellent and very common-sense
idea indeed! But, their plan of settle
ment' as far as their negotiations have
leaked out, means getting receipt in full
on the basis of about 10 or 20 cents on
the dollar. This device should be too
obvious for even poor old gullible Uncle
Sam.
Uncle SAM who cannot even balance
his budget, certainly will not stand for
any more cuts" nor will the American
puohc tolerate any action by its officials
which Will short-change the American
citizens and Shift these bond payments
onto their overburdened shoulders
The most feasible and reasonable plan
for an honest settlement of the debt of
Great Britain would appear to be upon
the following lines:
We issued and sold bonds to our
citizens and others to send money over
seas Now let Britain issue its own bonds
to pay us! Britain, unlike us and I'M
to its own public to raise the money.
The United States Treasury can receive
these bonds totaling approximately
100000 900, accepting them (as they
would need to be negotiable bonds backed
by the wealth Of the British government
as payment in full. The due dates of
these bonds may be staggered serially
fnrOllph a 1nnU of
ming as many corporations bonds do. into
the next century. By this process, pay
ment as the bonds mature at definite
dates will be made as comfortable as we
can for our debtor over a long period
OF years. 1t is possible even that at
certain serial dates renewals to a later
date may be made, but in any event, our
Treasury on needing money would mar
ket certain amounts of those bonds. and
there would be the assured eventual
payment of the entire. debt as it stands.
No other settlement" save a settlement
OF the full covering amount as it now
stands, will be acceptable to the Ameri-
can people, but we can be generous in
time arrangements.
Frequently there appears mention of
cancellation" of this debt in whole or
part. Let it be understood first. last
and lndisputablv that this debt cannot
be Cancelled" Either American citizens
or British citizens must pay it. because
the money for these foreign loans was
raised from the pockets of the American
people and others who bought these
I1nitoI OF Io, Il,
States Treasury the money for them,
and If Britain does not pay, the United
States must tax us all, directly or in
directly, to get money to pay holders of
these United States bonds both here
and abroad as they become due Some
body must pay!
The seriousness of this situation is
emphasized by the present condition of
our governmental finances and should
be thoroughly understood to prevent
further generosity with public funds.
We are not dealing with an insolvent
debtor, but a debtor which boasts of
balancing its budget and is the greatest
and richest empire on the face of the
! earth
Britain's income from its colonies
alone is vast, being stated by competent
authorities at around % billions a year,
We, with great loss to ourselves, by
throwing our weight and power into
| the Great War, gained for Great Britain
over million square miles of colonial
territory, of which she will not give up
willingly square rod
There are two things upon which the
| American public have made up their
minds. First, that we will not be emo
tlonalized into entanglements abroad or
the hideous horrors or costs of war in
European territory, and, secondly, the
American taxpayer will not stand the
shifting of the British debt to the over
burdened shoulders of the American pub
lie, which is what clipping the British
debt would definitely do.
GEO. SWINNERTON PARKER,
Boston, Mass.
June 3.