(1) The sums which the British Treasury borrowed from the American Treasury, after the latter came into the war, were approximately offset by the sums which England lent to her other Allies _during the same period_ (i.e.excluding sums lent before the United States came into the war); so that almost the whole of England's indebtedness to the United States was incurred, not on her own account, but to enable her to assist the rest of her Allies, who were for various reasons not in a position to draw their assistance from the United States direct.[167] (2) The United Kingdom has disposed of about $5,000,000,000 worth of her foreign securities, and in addition has incurred foreign debt to the amount of about $6,000,000,000.

The United States, so far from selling, has bought back upwards of $5,000,000,000, and has incurred practically no foreign debt.

(3) The population of the United Kingdom is about one-half that of the United States, the income about one-third, and the accumulated wealth between one-half and one-third.

The financial capacity of the United Kingdom may therefore be put at about two-fifths that of the United States.

This figure enables us to make the following comparison:--Excluding loans to Allies in each case (as is right on the assumption that these loans are to be repaid), the war expenditure of the United Kingdom has been about three times that of the United Sates, or in proportion to capacity between seven and eight times.
Having cleared this issue out of the way as briefly as possible, I turn to the broader issues of the future relations between the parties to the late war, by which the present proposal must primarily be judged.
Failing such a settlement as is now proposed, the war will have ended with a network of heavy tribute payable from one Ally to another.