THE REPAYMENT OF WAR LOANS
[To the Editor of the SPECTATOR.] SIR,—From time to time, as a regular reader of the Spectator, I have noticed suggestions that War. Loan Stock, which it is said was subscribed for in paper money, should Le repaid at something less than its par value, or that the interest be reduced, and in your last issue Mr. St. Loe Strachey, reviewing Mr. J. M. Keynes' latest book, seems to support this proposal. strongly.
To my mind the proposal seems to savour of neither justice nor honour. For, 1, is it not true that the Government in 1914 demanded and took away all our gold at the beginning of the War and created the paper money ? 2. Did they not also take away from us all our American, Canadian and even Argentine securities saleable in America and give us, those of us who were willing, this very War Stock in exchange ? 8, Were we not adjured by everything we held dear to deny ourselves and lend what we could spare from the high cost of living for War Loan Stock and War Savings ? Some I believe even parted with their jewellery to do so.
This being the case, how is it consistent with the honour of Great Britain, which has made such a point of paying its debt in full to America, to deny the right of its own citizens to be paid in full ? We paid in gold at first, and later in its equi- valent—an equivalent ordered to be used under penalties by the Government be it remembered. Why, therefore, should we not receive gold or the full face value of the stock in return ? —I am, Sir, &c.,
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