HIGH FINANCE: Sober Advice

Britain's Economist gave Britain's young Labor Government some advice on how to pay off its staggering $16 to $20 billion external war debt: 1) Britain should ask that a portion (20-25%) of each debt be forgiven—because Britain often had to buy at grossly inflated foreign prices; 2) Britain should then agree to pay an equivalent amount of the debt immediately, and in cash; 3) Britain should give her note for the remaining 50-60%.

Asking itself where Britain could hope to borrow the cash to pay the initial amount, the Economist soberly answered itself: "Clearly, there could be only one source—the...

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