Worcester Democrat and the ledger-enterprise. (Pocomoke City, Md.) 1921-1953, 1940-12-06
INFORMATION IS
NEEDED BEFORE
LOANS TOBRITAIN

In clearing the way for increased
aid to Britain-the most Immediately
effective part of Americas defense
program-it has become imperative
that some light be let into the thicket
of misunderstanding about loans
Thoroughly useful, therefore, was the
frank opening of the subject by the
Marquis of Lothian, on his return
from London. When the British Am
bassador said that by next year Brit
ain would need credits for war sup
plies bought in the United States,
he started Americans on some very
necessary thinking.
The Senate Foreign Relations Com
Mittee decided to withhold official
action on either the King resolution
(which would revise the Johnson Act
and the Neutrality Act so as to per-
nit loans) or on the Nye resolution
(which would investigate British hold
ings in the United States), but there
so certain to be a great deal of I'M
official study. of the whole question
Of loans to Britain. Information
il needed both by the people and the
government.
There are bound to be questions
shout British holdings in the United
States. Only estimates are available
ut present. Roughly they are that
at the start of the war British re-
sources in the United States were
somewhat above 100000, 900, made
up chiefly of central gold reserves,
dollar balances, American securities
and other British investments. There
are also estimates that London has
contracted for more than $4,000, 00O,-
600 worth of American war materials
It appears unlikely that Britain can
long continue to pay in goods or gold
for the vast quantities of supplies
she is throwing into the struggle a.
gainst the Nazis.
There is uncertainty also about the
effect of American laws. One wide
spread impression is that the john
son Act forbids governmental loans
TO nations which have not paid their
World War debts. But the wording
Of the Act expressly exempts "a pub
lie corporation in which the Govern
ment, exercises a controlling inter-
Ct" This appears to leave the way
apan to loans through the Export
Import Bank. But the Neutrality
Acts cash-and-carry provision was
attended clearly to bar credits.
AS to the johnson Acts ban on
pwivate loans through the sale of Brit
iah bonds in America-that surely
looks illogical today. 1t grew out OF
the never-correct assumptions that
leans led America into the World
War, isolation was possible and free
dom costless. Today the American
people know better. Their Govern
ment is facilitating the sending of
supplies, including ships and planes,
from it's own armed forces. Most
Americans want to send more aid.
Recognizing that Britain is holding
the front line, they are glad to give
all kinds of materials and money. To
keep a ban on loans by individuals
when many people-conscious that
Britain is spending men as well as
noney-are thinking in terms of
gifts is bit ridiculous.
But private loans will not begin
TO meet the need if the war goes an
ether year. Probably in six months
Britain will be scraping the bottom
Of her resources in the United States.
And only great government loans
will cover the vast expenditures re-
quired. That fact should be faced
10 there will be no misunderstanding.
We have no. doubt that the American
people will know what to do. They
should not wait to the last minute.
They should begin to think now Of