Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-11-24
act was mainly directed in the nrst

act was mainly directed In the first
place.
While President Roosevelt and
Secretary of State Hull have re-
Trained from any comment on
specified proposals for adding finan-
cial help to the aid short Of war"
being given Britain, their public
utterances have made 1t clear that
they will strive to continue all prac-
ticable aid.
Must Wait Next Session.
If assistance in the way of furn-
ishing airplanes and other supplies
to the British should be stymied by
Britain's inability to keep on pay
ing cash for them, the administrator
heads would be forced to consider
financial aid.
Lack Of any evidence Of admin
istration support for a resolution
introduced in Congress by Senator
King, Democrat, of Utah, for repeal
OF the johnson Act was attributed,
In part, at least, to the possibility
that direct Government loans with
In its scope might be considered
preferable to opening the way for
floating of private loans. In adj
dition, the administration officials
are understood to feel that decision
on whatever course of action might
be undertaken can wait until after
the next session of Congress con-
venes January 3.
The new Congress is expected to
face a growing public demand for
some form of action that will help
relieve the British financial burden.
Several Senators have reported
heavy mail urging an easing of the
present restrictions. Such demands
are expected to increase as result
of a campaign being waged by
committee headed by William
Allen White, outspoken sponsor Of
greater aid to Britain.
Private Loans Repaid.
The johnson Act ban against
private loans to defaulting nations
applies to England because she has
failed to keep up payments on
debts incurred during the first
World War. British spokesman
contend that meeting the payments
would have meant bankruptcy for
England.
The British now are in default
approximately $500, 000, 900, of
which more than 81 ,000, 900 900 rep
resents interest. The total out
standing debt is approximately S.
500 ,000,0 900. Before so much in
terest accumulated, the debt was
funded at $4,368 900 900 in 1928.
Total British payments on the debt
and interest have amounted to ST.
024 ,84S,817.
Before the direct Government
loans to Great Britain began after
this country's entrance into the war
In 1917, approximately $4,000, 900. :
600 was extended to the Allies in
private loans and credits from the
United States. Almost all of this
was in "short-term" credits-for
less than five years-and was all
repaid at maturity in terms of gold.
Gifts Urged by Hines.
A suggestion that American finan-
cial aid to the British at that time
be in outright gifts rather than
loans was Endorsed by Walter Hines
Page, the Ambassador to London
then-as Ambassador Kennedy has
advanced such an idea now.
In a cable to the State Depart
ment on March "a, 1917. Mr.. Page
reported that suggestions in the
American press for gifts and not
loans to the Allies were not being
discussed in London but that he
felt the moral return to us in ally
appreciation and In friendly feeling
for the indefinite future would make
it the best possible investment
towards maintaining a permanent
peace" 5
Mr.. Page consistently urged
greater advances to England after
they began with an initial Govern
ment loan Of 5000 900 900 on April
Is. 1917 The loans grew rapidly to
$685. 900 900 by July 6; $1,345 900 900
on October 20, and to $2,045, 900 900
by January 3, 1918. All of these
advances were made on British Ger
tiflcates of Indebtedness. the total
being funded in bonds in 1929.