The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1941-01-15
BRITISH GALLON


paid out any large part OF the
$71l5,00O,0o0 in gold and dollar
resources" which they neld when
the war began, according TO the
Federal Reserve Bulletin
Estimates Of the British orders
which still must be paid for, ap-
proximate $1,000 1000 1000.
British Empire gold holdings
at the end of August 1889, were
reported at 100000, in
vestments in American market
able securities totaled Sl.575,000,-
600: investments in British-con-
trolled enterprises in the United
States. 1880 ,000. 600; straight
British.held dollar balances. $1,000.
100000: miscellaneous investments.
s425.000.000.
Drafts upon these resources for
goods actually delivered by the
United States have totaled approx
mately S2,600,000000 since the war
began. This has been counterbal-
anced by production Of S1100,000.-
600 in new gold by the empire and
sales OF commercial goods 10 the
United States totaling Sl,4o0,000,
600.
Many Of the listed credits are
limited in availability. Gold hoard.
ings, for example, may be located
in such distant points as India and
Africa, where the problem OF safe
transportation to the United States
would be serious.
Security holdings are also diff.
cult TO classify. Many balances in
British names may be held for
nationals OF other nations who used
London as a clearing house; the
conversion value of others may be
limited.
Investments in controlled enter
prises may offer Britain's best OPP
portunity for raising large lump
sum within a short period and a pos
sibility exists that British invest
ments In other countries may be
liquidated on the American market,
thus preserving the American ball
ances, but the chances appear to be
limited.
Figures on securities and invest
ments must be viewed more as
broadly indicative Of possibilities
that might be realized under certain
facilitating circumstances than as
definite dollar resources.
Securities and Exchange Com
mission and Treasury officials are
considering q plan whereby Amer
lean investment trusts might aid
British liquidation by absorbing
some Of their security holdings.
Tentative plans. which are being
considered on an il, as and when
basis, call for the gradual transfer
OF the more easily marketable hold
ings to the larger and more diversi.
fled investment trust companies In
New York and other financial cen
tiers.
On the whole it appears that
Great Britain expects US to con.
slider Germany a common enemy.
and as in the last war. will look
upon her indebtedness TO the United
States as legal, perhaps, but not
moral obligation 10 be considered
IN terms Of cash.
About all We can expect Is per-
mission 10 use additional British
bases and to be given a voice in
final peace negotiations as in the
last war. Whatever we provide in
way Of aid in this war seems likely
10 be considered merely as a con.
tribution toward the strengthening
Of this countrys own security
through defeat Of the Axis powers.
That the American people will
be repaid any substantial part OF
the supplies this country may give
Great Britain, China and Greece
to enable continuance Of their war
against the Axis is doubtful.
There had been some hope that
the British after the war might be
persuaded TO compensate the United
states by turning over tin. rubber
and other raw materials. but there
seems to be little possibility Of
Britain actually doing so. regard
Jess OF what promises may be made
III the immediate future to encour-
age Congress to approve the plan.
The amount of supplies the !
United States will be called upon
70 provide as the arsenal OF the
democracies" before Britain sue.
ceeds in defeating Germany and |
Italy is apt to be so colossal that Il |
would be impossible for Britain 10 |
compensate this country for them
without permanently dislocatinx its |
own economic system.
Furthermore. many feel that n
Britain wins the war. she Ill feel |
she has sa Sed civilization and there |
must be no question OF any interna.
tional debt burden 70 interfere with |
the economic rehabilitation OF the
world.
Unless Congress insists on Ger.
tain conditions IN the loan.lease !
plan, the United States NAV even /
find II difficult TO get Britain 10 |
agree 10 sane policy OF peace ~
she wins the war. The people NAV
feel so bitter about the horrors OF
this war that they will not be dis.
posed to agree to any peace set.
Element that gives sympathetic con.
sideration 10 Germany
Unless Congress insists on assur.
ances In advance from the British
government In this connection. and
the United States exercises great
flrmness in the peace discussions.
Americas latest contribution 10 the
future welfare Of manpird NAV
prove as fruitless as the 1878 sac.
rifice