The Miller press. [volume] (Miller, S.D.) 190?-current, 1914-11-05
GOVERNMENT HAS NO POWER
TO OPPOSE SUCH ACTION ON
PART OF AMERICAN
BANKERS.
VAST SUPPLIES WILL BE
BOUGHT HERE AS RESULT
Russia and F%atheriand Alone May
Purchase $1oo,ooo,o o0 Worth
Pointed Out Proposed Transac-
tions Do Not Clash With
Views of Wilson.

Washington, Nov. 2. - Viewing
credit loans to belligerent countries
as private transactions, the Washing
ton administration will not attempt to
interpose it's influence against such
transactions on the part of the Amer
tcat bankers.
Germany Seeking Loan.
This was learned on the highest au-
thority after 1t became known that
German financiers we're contemplate
ing the establishment of a credit loan
III this country similar to the $10,-
100000 credit fund negotiated by the
National City bank of New York and
other bankers for the French govern.
ment.
The decision of the Washington ad-
min%istration may lead to the purchase
in the United States of about $50, 0OO,-
300 worth of supplies by Russia and
an equal if not a greater amount by
Germany. Details of the expected
transactions are lacking here.
Presidents Views Considered.
High officials of the Washington
administration insist that President
Wilson has not changed his view an
nounced at the outbreak of the war
that the l~oaning of money to bel
ligerents would be inconsistent with
the true spirit of American neutral
lty." A distinction was drawn by Of
hcials, however, between the loans
referred to at that time-such as bond
issues offered for public sale and
credit transactions intended as a
checking account against the u
chase by belhgerents of foodstuffs
and supplies from American firms.
The president realizes that this gov
eminent has no legal right to oppose
loans OF any character nor is there
any obligation of international law
torbidding them. During the Russo
Japanese war, loans were loated for
Japan in the United States through
public bond issues. The president is
understood, however, to be opposed to
that form of loan as liable to stir I'D
ill-feeling and prejudice.
Position of Government Embarrassing.
Ofhclals have unanimously decided
to refrain from discussing the subject
Of loans as the position of the govern
ment in the circumstances is an EN-.
barrassing one.
Under what is known as credit loans,
there is no intention, it is understood.
to export gold from the United States
Large funds will be established by the
belligerent countries with their inan-
clal agents here who will pay the bills
OF the European nations to American
dealers in munitions of war and sup
plies. The bankers will be given short
time notes by the belligerent govern
ments with a much better rate of in.
%terest, it is said, than ORDINARILY could
be obtained. In return for these con.
siderations European governments will
agree to spend large sums of money in
the United States for supplies.
Chicago Bankers Interested,
Chlcago.-Chicago bankers who are
taking part in the negotiations of some
OF h ~belligerent nations Of Europe
for supplies in this country, said u
chases for cash have reached a large
volume and there is every reason to
believe the demand will continue. Chi.
cage alone is said to have come in for
s7,OO0.OO0 or $4,000. 900 of this bust.
ness to date and more large orders are
pending. Great Britain is taking large
quantities OF supplies here, but that
country is not a buyer in a cash sense.
payments being made through the
workings of the trade balance OK.
change plan.