The French Debt and the Young Plan

Report Outline
French Debt Pacts with Britain and America
French Debt Payments and Reparation Receipts
Special Focus

At the end of the fiscal year 1919, two days after the signing on June 28 of the Treaty of Versailles, the debts of foreign nations to the Government of the United States totaled a little more than nine billion dollars. The public debt of the United States stood on the same day at $25,482,034,419,

By the end of the fiscal year 1929, ten years after the signing of the Treaty of Versailles, the public debt of the United States had been reduced to $16, 931, 088, 484. In the meantime, the indebtedness of foreign nations, as carried on the books of the Treasury, had increased to more than $11, 825, 000.000. The increase in foreign indebtedness during this period was due in part to additional cash advances made after June 30, 1919; in part to the acceptance of new foreign obligations in exchange for surplus American war supplies, and in part to the accrual of interest on outstanding obligations without payment by certain of the country's foreign debtors.

Agreements have been signed with fourteen nations for the funding of their indebtedness to the United States. In addition, the debts of Austria and Nicaragua are regarded as being substantially in funded form. However, one major funding agreement-the Mellon-Bérenger agreement with France-remains to be ratified by the debtor nation. Russia is the only major debtor that has taken no step to regularize its indebtedness to this country. Armenia has ceased to exist as a nation, but the principal of the Armenian debt, plus accrued interest, is still carried on the books of the Treasury.