FINANCIAL BLACK-LIST OF NATIONS

Dominion, Volume 12, Issue 231, 24 June 1919, Page 5

FINANCIAL BLACK-LIST OF NATIONS

AVhat might be called the financial black-list of nations—the nations that arc in default in debt payments—has considerably increased during tho war, says tho city editor of the "Daily Mail." In a summary of tho principal loan-; in default. the annual report of tho Council of Foreign Bondholders leeently issued gives tho approximate principal outs tainting'as 1827 millions against 22 millions, in its report for 1913, whilo the approximate interest arrears have grown from 63 millions to 101 millions. Apart from various Southern States of the United States and the former Confederate States, whoso long-standing default still romains to sully the financial record of what is now tho United Statos, tho only Stato on the black-list before the wai was that hoary defaulter Honduras, whoso financial delinquency has been by-word sinco mid-Victorinii days. Now, howevor, Russia, with its great debt of 1716 millions, on which 81 millions,, of interest is in arrear, enjoys tlio unenviable distinction of defnultcr-iii-cliicf. Mexico comes a slow 6ecoiul with 54 millions principal and 12 millions arrears of interest. And Ecuador and tho Argentine Province cf Corrientes complete tho tale of tho defaulters. As to the prospect for tho uufortunato holders of the securities of these bad payers, the Council o£ Foreign Bondholders expresses tlio ' hopo that tho restoration of peace and the removal of trado restrictions caused by tlio war will enable those Governments that have felt tliemsolvcs compolled to cuspend Ilia payment of their foreign obligations, wholly or in part, to rosuino them ill full', The settlement of the external obligations of the Central Powers and their allies will, of course, form part of tho Pcaco Treaty, and it is encouraging to learn that the council has been assured that the interests of bondholders will bo properly protected. It is of interest to note that tlio council, which consists partly of nominees of the Central Association of Bankers and the London Chamber of Commerce and partly of co-opted members, now contains only one member of Parliament, Sir Frederick Banbury.