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To: Ilaine who wrote (306)	5/24/2001 1:11:10 AM
From: JF Quinnelly	Respond to of 443

The US was still accepting gold as money at $20 an oz (and at easier terms than that with FDR), so borrowers in those countries weren't at the mercy of a dollar shortage. They simply couldn't pay their debts. This is not unlike what we in the US did to the British one hundred years earlier in the great railroad bubble. The Brits threw money at anyone in America who wanted to build a railroad, and lots of people did. Most roads hadn't a prayer of working out, and the British lenders got stuck when the majority of borrowers defaulted. Another more recent lesson for that generation of bankers was the Russian default of 1917, which I think is the largest default on record. Apparently no one learned that yes, countries can default.