Show ANOTHER BAG TO HOLD 1 according to dr ma max winkler noted international economist I 1 whose book foreign bonds an autopsy was published recently I 1 the total amount of defaulted government state and municipal obligations in this old world of ours by the first of next year will have reached the staggering sum of 22 T this h I 1 s amount it is pointed out is i only I 1 a little less than the entire expenditures tures of the united states government from its inception up to the outbreak of the world war of the defaulters default ers russia heads the list according to dr winkler and the land of the dig big bear accounts f for or n more than 77 per cent of the total default all of this should be very interesting to the american reader at this particular time when we are arc being told by sonic some of our aident propagandists that the proposed recognition of communist russia prussia at tins this time will mean a great deal to the foreign trade of the united states we are arc informed that russia is prepared to buy a half billion dollars worth of goods at once some propagandists make it a billion and a few of the more optimistic ti ones two billion just how russia is going to pay for all the things she gets from us does not bother these enthusiasts in the least they talk more or less vaguely about a government credit now it is a good bet that the cagey american manufacturer or producer is not going to sell to russia on credit unless the communists have some security better than their own promissory notes then it would seem to be necessary that the united states government extend credit to russia or in other words underwrite dussias Rus sias credit if uncle sam is willing to do that of course russia 9 ia will buy until it hurts A similar procedure has been followed by other ir nations in dealing with russia the result in each instance has been that russia has bought liberally so long as it had credit and when the credit was exhausted has turned to some other nation which was willing to extend her credit if uncle sam gets in on this he will have the distinction of holding the last bag some friends of russian recognition claim that the present government has not yet decaul defaulted ted on any colimer commercial cial credits whether this is technically true or not it is a fact that she owes gwei various sums in different countries and is only paying interest where she pays anything and the total debt is tremendous of course it may he be argued that russia can pay us in goods but the only commodities she could send us in exchange would be lu lumber oil coal and other raw materials of which we already have a burdensome surplus at this stage of the worlds history when general default def fault of international ter national obligations seems to be the order of the day it certainly behooves uncle sam to be careful about extending credit for it is to be remembered that when default comes it is the me american taxpayer who has to pay the bill |