Lapas attēli

Of the $10,300,000,000 of loans and other credits extended since 1933, $9,300,000,000 has been granted and used since 1945. The principal exceptions were loans made by the Export-Import Bank, which was established in February 1934, and loans by the Reconstruction Finance Corporation, of which the largest was the loan to the United Kingdom in 1942. Since the end of World War II, the loan of $3,750,000,000 to the United Kingdom has been the largest. Export-Import Bank loans to many countries, lend-lease credits partly for postwar shipments and partly in payment of inventories of lend-lease goods suitable for postwar use, and sales of surplus property have accounted for the bulk of credits utilized and indebtedness outstanding (see table 1). The $10,300,000,000 of credits include $7,200,000,000 actually disbursed or utilized by the borrowers prior to June 30, 1947, and $3,100,000,000 not yet utilized on that date. Much of this $3,100,000,000 was utilized during the 5 months following June 30.

Other financial assistance to foreign countries by the United States Government was dominated by lend-lease assistance to our Allies during the war, amounting to $47,806,000,000 (see table 2). The United States contribution to the United Nations Relief and Rehabilitation Administration and the provision of civilian supplies for the prevention of disease and unrest by the War and Navy Departments in occupied areas are also important. Some of the amounts shown in table 2 represent outright grants, while others are items as to which terms of repayment were to be negotiated but have not yet been settled. Postwar utilization of these forms of aid amounted, up to June 30, 1947, to $5,364,000,000. The unutilized balance as of the same date, amounting to $2,236,000,000 is comprised principally of civilian supply commitments for occupied areas, aid to the Philippine Republic, the aid to Greece and Turkey, and the post-UNRRA aid.

TABLE 2.-Other financial assistance to foreign countries by the U. S. Government, through June 30, 1947

[In millions of dollars]

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1 Some of these items were outright grants, while others were subject to negotiations as to terms of repayment. The amount of credits extended or cash received as a result of negotiations have been deducted from these amounts.

2 Committed but not all appropriated (see explanatory notes, table 18). Utilizations in the quarter ending Sept. 30, 1947, are estimated to reduce the unutilized balance on Oct. 1, 1947, to about $1,700,000,000. 3 Excluding cash lend-lease.

4 Utilizations here reported reflect lag in fiscal records; authorizations are understated to extent of the same lag, estimated at about $150,000,000 as of June 30, 1947, which would bring the total authorization to $2,700,000,000.

Source: Clearing Office for Foreign Transactions, Department of Commerce.

UNITED STATES (1917–21)1


The United States made loans to the Allied Governments before and after the Armistice for the purpose, in general, of assisting those governments to purchase supplies in the United States in connection with the prosecution of the war. In addition the United States, after the Armistice, sold surplus war and relief supplies on credit to various countries of Europe, including some of the Allied Governments. At the conclusion of the war period the Treasury held obligations of 20 nations, payable either on demand or within a short period of time.

The United States acquired obligations of foreign governments as a result of (1) cash advances made under authority of the various Liberty Bond acts; (2) sales on credit of surplus war material under authority of the act of July 9, 1918; (3) sales on credit of relief supplies under authority of the act of February 25, 1919; (4) sales on credit for relief purposes of flour by the United States Grain Corporation under authority of the act of March 30, 1920; and (5) services rendered by the United States Shipping Board Emergency Fleet Corporation.

TABLE 3.-Principal amount of obligations of foreign governments originally acquired under the various acts of Congress

[In millions of dollars]

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1 Includes $12,167,000 authorized under the act of Feb. 14, 1929.

2 $26,000.

3 Includes $289,898.78 canceled under treaty of Apr. 14, 1938, between the United States and Nicaragua.
4 Includes $3,736,628.42 acquired by the United States Shipping Board Emergency Fleet Corporation for
services rendered.

Exclusive of $5,000,000 conditional advance not availed of and returned.

1 The following account of the origin, development and present status of the World War indebtedness of foreign countries to the United States, is taken from a "Memorandum covering the World War Indebtedness of foreign governments to the United States (1917-21) and showing the total amounts paid by Germany under the Dawes and Young Plan" prepared by the Treasury Department, Fiscal Service, Bureau of Accounts, revised July 1, 1944, and the July 1, 1947, supplement to that memorandum. Further information on the subject may be found in that memorandum and in the Combined Annual Reports of the World War Foreign Debt Commission.

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Cash advances

The Liberty Bond acts authorized the Secretary of the Treasury with the approval of the President, to establish credits in favor of foreign governments engaged in war with enemies of the United States, and, to the extent of those credits, to make advances to such governments through the purchase at par of their respective obligations. The total principal amount of obligations acquired under this authority, including a loan of $12,167,000 to Greece authorized by the act of February 14, 1929,2 was $9,610,403,575.45. Of this total, the sum of $7,077,114,750 was advanced up to November 11,1918, and $2,533,288,825.45 was advanced after the Armistice (see table 3).

TABLE 4.-World War I debt owed the United States as of July 1, 1947

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1 Includes principal postponed under moratorium agreements and principal amounts not paid according to contract terms.

2 Also includes interest postponed and payable under agreements of May 1, 1941, and Oct. 14, 1943. 3 The German Government was notified that the Government of the United States would look to the German Government for the discharge of the indebtedness of the Government of Austria to the Government of the United States.

4 Advance payment of interest June 15, 1933, amounting to $29,061.46 deducted.

5 This Government has not accepted the provisions of the moratorium.

NOTE.-Indebtedness of Germany to the United States on account of costs of army of occupation and awards under Settlement of War Claims Act of 1928, as amended, not shown in above statement.

Sale of war supplies on credit

Under authority of the act of July 9, 1918, the President, through the head of any executive department, was authorized to sell any surplus war supplies on such terms as the head of such department deemed expedient. Sale was carried out by the United States Liquidation Commission (created on February 11, 1919) and by the Secretaries of War and of the Navy, who received in payment obligations of the purchasing governments. The total principal amount of obligations thus acquired was $595,386,104.79. (This amount is exclusive

This loan, made out of credits established by the Liberty Bond acts, was specifically 'authorized by Congress in connection with settlement of the Greek war debt to the United States.

of $3,736,628.42 acquired by the United States Shipping Board Emergency Fleet Corporation for services rendered.)

Sale of relief supplies on credit

American Relief Administration. The act of February 25, 1919, appropriated $100,000,000 as a revolving fund until June 30, 1919, for the participation by the United States, in the discretion of the President, in the furnishing of foodstuffs and other urgent supplies to populations of certain countries of Europe or countries contiguous thereto. The American Relief Administration was given the authority of equitably distributing the relief supplies in accordance with the provisions of the act. Out of the appropriation of $100,000,000 the sum of $95,050,391.08 was expended, for which there were delivered. to the Treasury obligations in the principal amount of $84,093,963.55 from various foreign governments. Approximately $10,900,000 was spent for child feeding and other charitable services for which no obligations were taken.

United States Grain Corporation. The act of March 30, 1920, authorized the United States Grain Corporation, with the approval of the Secretary of the Treasury, to sell or dispose of flour in its possession, not to exceed 5,000,000 barrels, for cash or on credit at such prices and on such terms or conditions as considered necessary to relieve the populations in the countries of Europe or countries contiguous thereto suffering for the want of food. The American Relief Administration acted as the fiscal agent of the United States Grain Corporation in dispensing this relief. For these supplies there were delivered to the Treasury obligations of foreign governments in the principal amount of $56,858,802.49.

Transportation services

The United States Shipping Board acquired obligations in the net principal amount of $3,736,628.42 from the Government of Poland for transportation services rendered that Government in connection with the shipment of supplies to Poland. The Shipping Board transferred these obligations to the United States Treasury for collection. Summary

Table 3 shows the principal amount of obligations originally acquired from each foreign government under the acts of Congress specified above including those acquired by the United States Shipping Board.


Recognizing the fact that in the financially disordered years of 1921 and 1922 the debtor nations could not pay on demand, Congress originally authorized the debts to be funded on not longer than a 25-year basis and at not less than 44 percent interest. A World War Foreign Debt Commission was created by act of February 9, 1922, amended February 9, 1923, to deal with refunding. This Commission negotiated settlements with the various debtor countries on the basis of their estimated ability to pay. Each settlement received the approval of Congress before it became effective.


TABLE 5.-Principal and interest computed at the rates specified in debt agreements with foreign governments, credit allowances, cash payments,

and the total debt as funded

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1 Amount of interest written off in compromise settlement with Czechoslovakia. 2 Allowance for total loss of cargo of steamship John Russ sunk by a mine in Baltic Sea. 3 Includes 4 percent 20-year loan of $12,167,000 authorized by act of Feb. 14, 1929.


$24, 614, 885.00
417, 797, 234.66
117, 858, 413.94
15, 764, 365. 33
9, 009, 315. 27
4, 025, 386, 686. 89
4, 604, 128, 085.74
30, 294, 922. 67
1, 939, 753. 04
2,042, 199, 466. 34

5, 779, 562. 76
6, 031, 546. 97
178, 565, 025.99
44, 594, 451. 54
62, 857, 112.39

11, 586, 820, 828. 53

4, 768, 606. 14 4, 791, 337. 39

9, 559, 943. 53

11, 577, 260, 885.00

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