FISCAL: Hungarian Debt

Only the Allies borrowed money from the U. S. during the War. But in 1920 onetime enemy Hungary, on the brink of famine, bought on credit 13,890 tons of flour from the U. S. Grain Corp. at a price of $1,685,000. Increased by the time it was funded in 1924 to $1,939,000 (including interest), Hungary's debt went into default with the War debts during the world crisis that provoked the Hoover Moratorium in 1931.

Last year Hungary caused a mild flurry at the State Department by making a token payment of $9,826.16 (TIME, Sept....

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