ENGLAND’S WAR DEBT.

Taranaki Daily News, 14 May 1921, Page 9

ENGLAND’S WAR DEBT.

WHY WE HAD TO BORROW.

London. Feb. 23.

In the House of Commons on Tuesday, the Chancellor of the Exchequer, in reply to a question, made an important statement on the subject of our indebtedness to the United States and the help we gave our Allies. That the two things are ’intimately associated will be seen. Mr. Chamberlain said that before the entry of America into the war, the British and French Governments together raised a loan of 500 million dollars in New York. T-hat loan was paid oft 1 last autumn. No further loan was raised in the United States until after the entry of that country into the war. Our debt to the United States stood at 4,427,000.000d0L on May 31, 1919; it now stood at 4,197,000,OOOdol., exclusive pf interest. Our loans to Allied Governments before the entry of the United States into the war amounted to £828,000,000, and after the entry of the United States into the war and during the period in which wj we*e borrowing from the United States Government, we lent a further £897,090.000 to the Allies marking £1,725,000,000 in all._ So much for the figures. Ou the facts we have a circumstance of tremendous importance, to be borne in mind in our financial relations with our Allies and Germany, more particularly at a. time when an Ally shows a disposition .-to be greedy. “Was not almost the entirety of the money we borrowed from the United States lent at once to our Allies?” the Chancellor was asked. “1 think,” was the significant reply, “that if we had not had to meet any calls for assistance from our Allies, it would have been unnecessary for us to have asked assistance from the United States.” So if America wiped out the loan, the effect would be that she would accept the burden of giving that much assistance to Powers which were her Allies as well as ours. She lias probably lent them money directly. On ’the other hand, it was this country that bore the burden of the war, before the United States took a hand at all, and when they were doing a by no means unprofitable war trade with ourselves and other belligerents.