The Inter-Ally Debts

374 Pages·2011·7.7 MB·English

by  Harvey E. Fisk

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THE INTER-ALLY DEBTS
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Federal Reserve Bank of St. Louis
THE INTER-ALLY DEBTS
An Analysis of War and
Post-War Public Finance
1914-1923
By
HARVEY E. FISK
BANKERS TRUST COMPANY
NEW YORK-PARIS
1924
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Copyright 1924 by
BANKERS TRUST COMPANY
NEW YORK
All rights reserved
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Foreword
T
HIS book has been prepared in response to many requests
for information regarding the cost of the World War, how
this cost was met, and more particularly for information about
the debts between the allies, which are going to be of great
international importance for many years to come.
We have analysed the accounts of some twenty nations,
using for the purpose, wherever possible, their official statis-
tical publications. In some cases official statements were
especially prepared for us. As all statements were in national
currencies—pounds, francs, lire, drachmae, dollars and so on,
it became evident early in our study of the problem that to
make the figures comparable they must be expressed in one
currency. We decided to state them all in dollars, converting
each foreign currency at the rate of exchange current before
the war, i.e. practically at exchange parities. However, in
view of the fact that prices in each country were inflated by
war financing, but in varying degrees, it also seemed desirable,
in order to make them comparable^as to purchasing power, to
adjust the figures to the price level of 1913, that is, to put
the statistics all on a pre-war gold basis. Thus the reader
will find most of the statements given at their face or currency
value just as published by the several governments, only
expressed in dollars at par of exchange instead of in national
currencies, and he will also find them expressed in "1913",
or gold, dollars.
We hope the book may fulfill the purpose for which it was
created, and be of value to our friends. We also wish here
to express to the officials of the various governments who have
furnished us with the necessary statistics, our appreciation of
their helpful co-operation.
BANKERS TRUST COMPANY
April, 1924 New York and Paris
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Contents
CHAPTER PAGE
I Eighty Billion Dollars 1
II The Cost of the War 11
III The War Expenditures of Each Great Power 21
IV How the War Was Paid For 40
V The Revenue Receipts of Each Power
45
VI Borrowing in Home and Foreign Markets 7i
VII Market Borrowing of Each Belligerent
79
VIII The Inter-Ally Loans, 1914-1917 120
IX The United States Becomes Financier for the
Allies, 1917-1920 150
X Great Britain as Borrower and Lender, 1917-
1920 189
XI French Loans From and To Foreign Nations,
1917-1920 208
XII Financing Belgium, 1914-1923 217
XIII Loans for Relief, 1918-1923 237
XIV Payments Under the Treaty of Versailles 242
XV The Status of National Debts in 1923 254
XVI The Wealth and Income of the Belligerents 261
XVII The Wealth and Income of the British Em-
pire 271
XVIII National Wealth and Income of France 283
XIX National Wealth and Income of Italy 228899
XX The Wealth, Income and Foreign Indebted-
ness of Russia 293
XXI The Wealth and Income of the United States 330055
XXII The Wealth, Income and Foreign Invest-
ments of Germany 313
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Statistical Tables
PAGE
Expenditures of Each Belligerent 322
Pre-War Status Receipts of Each Belligerent 323
Debts of Each Belligerent 324
For the Six Years, "Currency" dollars 325
For the Six Years, " i<m" dollars 13
Year by Year, " 1913" dollars 19
Expenses Classified, " 1913 " dollars 16
Cost of the War First Part 'Tiirrptirv flnllars 326
First Part, "1913" dollars
Second Part, ''Currency" dollars 328
Second Part, " 1913" dollars 329
Six Years, "Currency" dollars 330
Six Years, " 1913" dollars 33*
Year by Year Receipts, "1913" dollars 43
How the War First Part, "Currency" dollars 332
Was Paid For
First Part, " 1913" dollars 333
Second Part, "Currency" dollars 334
Second Part, "1913" dollars 335
" Currency M dollars 336
"1913" dollars 1917 337
Basis New York Exchange 338
"Currency" dollars 339
National Debts "1913" dollars [1920 34°
Basis New York Exchange 341
"Currency" dollars 342
"1913" dollars 1923 343
Basis New York Exchange 344
April, 1917 121
Inter-Nation November, 1918 345
Debts In 1920 346
In 1923 348
Wholesale Price Index Numbers, 1914 to 1923 350
Payments Due Annually by Great Britain Account of Debt to the
United States 35»
Estimated Wealth of the States of the United States 352
All money statistics are expressed in dollars. Unless otherwise noted,
foreign currencies have been converted at exchange parities. Such figure*
are stated as "currency " dollars, or simply as dollars. Where the expres-
sion "1913" dollars is used, it means that the actual or currency figures
have been re-stated in terms of the purchasing power of money in 19*3-
For detailed explanation, see pages 14 and 319.
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THE INTER-NATION
INDEBTEDNESS IN 1923
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THE INTER-NATION INDEBTEDNESS IN 1923
In dollars at par of exchange—00,000 omitted
BORTRHOEW ERS H | TLHEEA DERS BGrrietaatin Caadna- France Italy Russia USntaitteeds GTroatnadl
British Empire
Gieat Britain 69.7 359.8 133.8 1.365,3 4,661,0 66666666,,,,,,,,444444448888888899999999,,,,,,,,55555555
444444443333333399999999........88888888
666777,,,333 6666666677777777........33333333
111444333...555 111111114444444433333333........55555555
South Africa 555777...SSS 5555555577777777........88888888
BBrriittiisshh SSoouutthh AAffrriiccaa CCoo.. .. 000...777 99999999........77777777
111...999 11111111........99999999
CCCCrrrroooowwwwnnnn CCCCoooolllloooonnnniiiieeeessss .... .... ........ 333...777 33333333........77777777
TTTToooottttaaaallll BBBBrrrriiiittttiiiisssshhhh EEEEmmmmppppiiiirrrreeee .... 733.6 69.7 359,8 133,8 t.365.3 4.661.0 7.313,1
AAAArrrrmmmmeeeennnniiiiaaaa 4444444.......5555555 11114444....3333 1111111111111111111111188888888888888888888888,,,,,,,,,,,,,,,,,,,,,,,88888888888888888888888
Austria 66666663333333..............1111111 000,,,111 6622,,66 33338888....4444 111111111111111111111115555555555555555555555533333333333333333333333.......................44444444444444444444444
BBeellggiiuanm Congo . . . . .. 4444444111111133333337777777.......,,,,,,,33333338888888 66,,33 777111111,,,000 444455554444....5555 11111111111111111111111.......................3333333333333333333333311111111111111111111111111111111111111111111115555555555555555555555577777777777777777777777.......................,,,,,,,,,,,,,,,,,,,,,,,3333333333333333333333366666666666666666666666
Czpcho-Slovakia 6666666.......7777777 111111000...888 3344..88 111111110000....9999 333333333333333333333336666666666666666666666633333333333333333333333.......................33333333333333333333333
Esthonia , 1111111.......3333333 222...000 11116666,,,,8888 3333333333333333333333300000000000000000000000,,,,,,,,,,,,,,,,,,,,,,,00000000000000000000000
Finland 9999....0000 99999999999999999999999.......................00000000000000000000000
France . . . . . . . .. 3,927,6 5.7 99996666,,,,6666 3333,,,,999999990000....7777 77777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000002222222222222222222222200000000000000000000000,,,,,,,,,,,,,,,,,,,,,,,66666666666666666666666
Franco Polish 3333....4444 22222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,44444444444444444444444
Germany . . . . . .. cccc ccccccccccccccccccccccc
Greece IIIIOOOO9999....0000 77..55 111166666666,,,,2222 dddd 1111111166666666,,,,,,,,55555555 222222222222222222222229999999999999999999999999999999999999999999999.......................33333333333333333333333
Hungary . . 0000....6666 0000....2222 22222222,,,,,,,,00000000 22222222222222222222222.......................88888888888888888888888
Italy 3333,,,,555566668888,,,,6666 111166663333....9999 22222222,,,,,,,,000000001111111155555555,,,,,,,,00000000 44444444444444444444444.......................777777777777777777777774444444444444444444444477777777777777777777777.......................55555555555555555555555
LLiabtevriaia oooo....tttt 3333....2222 //////// 66666666,,,,,,,,00000000 ///////////////////////ggggggggggggggggggggggg,,,,,,,,,,,,,,,,,,,,,,,
Lithuania . . aa 11,,33 66666666,,,,,,,,00000000 77777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,33333333333333333333333
NPoiclaanrda gua 222222000000,,,,,,777777 220033,,88 1133..77 11111111888888880000000022222222,,,,,,,,........3333333344444444 44444444444444444444444222222222222222222222220000000000000000000000000000000000000000000000,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,3333333333333333333333366666666666666666666666
Portugal 999999999999......666666 0000000000000000000000099999999999999999999999.......................66666666666666666666666
Roumania . . . . . . .. 111111333333555555......999999 333000,,,555 333322227777....9999 333333333333......666666 44443333....8888 444444444444444444444445555555555555555555555500000000000000000000000.......................77777777777777777777777
Russia 444444......333333222222333333......000000 666 1111....111166665555,,,,7777 777777......333333 222244441111 9999 SSSSSSSSSSSSSSSSSSSSSSS.......................777777777777777777777773333333333333333333333366666666666666666666666.......................88888888888888888888888
SSeerrbbss,, CCrrooaattss aanndd SSlloovveenniiaa ,, 111111333333777777......999999 333344448888,,,,9999 333333......444444 66661111....6666 5555555555555555555555555555555555555555555555ttttttttttttttttttttttt,,,,,,,,,,,,,,,,,,,,,,,88888888888888888888888
UUkkrraaiinnaa eeeeee eeeeeeeeeeeeeeeeeeeeeee
United States 333333,,,,,,888888 33333333333333333333333.......................88888888888888888888888
GGrraanndd TToottaall TL.171,4 109.8 3463.7 390,0 1.265.3 II.86I.O 28,261,1
aJ82,ooo. 6J55.000. cSs.ooo. d$2 7,000. <58,000,
/J31.O00.—These are whole figures.
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The Inter-Ally Debts
CHAPTER I
Eighty Billion Dollars
HE war cost $80,680,000,000 gold. The purchasing
power of the currencies of every combatant nation was
affected in varying degrees by inflation caused by the use
of paper money and bank credits in financing the war. Tak-
ing the figures of each nation as reported from year to year
and reducing them to dollars at par of exchange, the expen-
ditures for war totalled $208,600,000,000 in currency. To
arrive at a uniform basis of statement, we have divided the
figures for each nation for each year of the war by the whole-
sale price index number of that nation. Thus we have ob-
tained a statement for each nation in terms of 1913 prices.
The sum of these figures, $80,680,000,000, may be called the
gold cost of the war.
How can we realize the magnitude of such a sum ?
Eighty billion dollars would reproduce all of the railway
mileage of the world and there would still be over twenty
billion dollars to spare for some other use—enough to build
and equip a railway system as great as that of the United
States.
In 1914 English economists estimated the wealth of the
people of Great Britain to be about seventy billion dollars.
All of the property of every kind in England, Wales, Scot-
land and Ireland, the railways, the docks, the shipping trav-
[1
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