262 THE ECONOMIC CONSEQUENCES OF THE PEACE cn.

debt, however, there are interested parties on bothsides, and the question is one of the internal dis-tribution of wealth. With external debts this is notso, and the creditor nations may soon find theirinterest inconveniently bound up with the mainten-ance of a particular type of government or economicorganisation in the debtor countries. Entanglingalliances or entangling leagues are nothing to theentanglements of cash owing.

The final consideration influencing the reader'sattitude to this proposal must, however, depend onhis view as to the future place in the world's progressof the vast paper entanglements which are our legacyfrom war finance both at home and abroad. The warhas ended with every one owing every one else immensesums of money. Germany owes a large sum to theAllies ; the Allies owe a large sum to Great Britain ;and Great Britain owes a large sum to the UnitedStates . The holders of war loan in every countryare owed a large sum by the State; and the State inits turn is owed a large sum by these and other tax-payers. The whole position is in the highest degreeartificial, misleading, and vexatious. We shall neverbe able to move again, unless we can free our limbsfrom these paper shackles. A general bonfire is sogreat a necessity that unless we can make of it anorderly and good-tempered affair in which no seriousinjustice is done to any one, it will, when it comes atlast, grow into a conflagration that may destroy much