Evening star., 1940-12-28
Britain 10 Reach End
OF Cash in Early Fall,
Survey Indicates
More DetoiIed Study
Is Being Made of
Resources Here
BY LLOYD LEHRBAS,
Associated Press Stan Writer.

A. preliminary audit of British re-
sources in the United States has re-
vealed, authoritative sources dis
closed today, that Great Britain will
run out of cash to pay for purchases
of arms and munitions here "in the
early autumn" of next year.
The preliminary examination of
Britain's financial condition, made
by United States Treasury experts,
established that the end of cash
payments was approaching, it was
stated. A more detailed study Of
the British treasury's balance
sheet" row is under way.
That detailed analysis, informed
sources said, was being made to
determine as precisely as possible
British capacity to pay for purchases
here, and the probable calendar
date on which British cash would
be exhausted.
The Treasury's study also will
provide answers to the questions
President Roosevelt and Secretary
Morgenthau expect to be asked
when Congress considers the prob
lem of aid to Britain.
Able to Pay for Present Orders.
The British government now is
paying for war supplies with gold
shipped from London, payments for
British goods, and receipts from
the sale here of British-owned dol
lar securities.
Well informed sources said that
the British Treasury's balance sheet,
made available to the United States
Treasury experts. showed that Brit
ain would be able to pay cash for
all ships, planes and other war
implements and supplies now on
order, but could not pay cash for
the tremendous future orders which
Britain wants to place Immediately.
The Treasury's analysis of British
resources, it was believed, prompted
President Roosevelts recent pro-
pOodl pllop UllC Ol1bCo AOdbCo IahC
measures necessary to insure con-
tinuous flow of vital war materials
to the British Empire when Britain
no longer was able to pay cash.
Might Take Over Orders.
The President suggested that the
United States Government might
take over all future orders for war
supplies and lease or lend the planes.
guns and other material required 20
the British government.
He declared the dollar sign would
be eliminated from the question of
American aid to Britain, and
mutually satisfactory settlement ne
gotiated after the war
The President emphasized that
his proposal applied only to future
orders and expressed belief that the
British had sufficient funds to pay
for all war supplies for which they
had placed orders
An estimated $4,000 100000 worth
of war materiel might be lent or
leased to the British under the
plan, authoritative military sources
said.
British Liquidating Stocks.
The British government, through
an Office set up for the purpose,
now is Systematically liquidating
British owned stocks and bonds
taken over by the British treasury
from British subjects, it was ex-
planned. The amount of Britain's
receipts from that source cannot
be known until liquidation has been
completed.
The securities were reported being
tiquidated gradually, with the Brit
tsh officials and their brokers max
ing every effort to take advantage
of the market and secure every
possible dollar for their war effort.
The exact date the British run
out of cash will be determined in
part by the amount realized through
sale of the securities.