Concerning the problem of the interallied indebtedness to the United States, Herbert Hoover has said: "The question is one
of the most complex and difficult in character that the American
people have ever confronted." The United States has learned
through disputes that have centered around the debts, as much
as from any other matter, that it cannot enter a great world
war, intertwine its economic affairs with those of allied governments, and then at the proclamation of peace retire to its former
solitude. No question with which this government has to deal
is more baffling to the average citizen, none more portentous,
and to none are the principles of foreign policy learned by the
American people in the days of isolation less applicable.
THE COLLECTION OF THE INTERALLIED DEBTS: A
PROBLEM IN INTERNATIONAL FINANCE AND
THE GENERAL CHARACTER OF THE LOANSThe Reasons for the Loans. --When the United States entered
the World War, there were three considerations which prompted
it to give large credits to the allied governments:
|1. ||The allies were in dire need of munitions, supplies, food, and
shipping. They had been actively fighting for nearly three
years and their stocks were depleted almost to the point of
exhaustion. The United States during that time had been
building up a huge productive plant, which was capable of still
greater expansion under the stress of actual participation in the
war. The United States was the natural source from which the
needs of the European allies were to be met. President Wilson
in his War Message made this point clear. He said:|
In carrying out the measures by which these things are to be accomplished we should keep constantly in mind the wisdom of interfering
as little as possible in our preparation and the equipment of our own
military forces with the duty--for it will be a very practical duty--of
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Economic Foreign Policy of the United States.
Contributors: Benjamin H. Williams - Author.
Publisher: McGraw-Hill Book Company, Inc..
Place of publication: New York.
Publication year: 1929.
Page number: 217.
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