The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1914-11-04
Administration Keeps Out
of Problem.
UNDERSTOOD TO OPPOSE PLAN
The Nations Now Engaged In
War Would Spend
Millions Here.
THE BANKS ARE INDEPENDENT

Washington, Nov. 2.-viewin
credit loans to belligerent countrie
as private transactions. the Wash
ington Administration will not at
tempt to interpose its influence
against such transactions on tn,
part of American bankers.
This was learned on the highes
authority after it became know
that German financiers were contem
plating the establishment of cred
ii loan in this country similar to the
100000 credit fund negotiated
by the National City Bank of New
York and other bankers for the
French Government
The decision of the Washington
Administration may lead to the pur-
chase in the United States OF about
$50, 100000 worth of supplies by
Russia and an equal if not a greater
amount by Germany. Details of the
expected transactions are lacking
here.
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 loaning of money to bellig-
erents would be inconsistent with
the true spirit of American neutrali-
ty."
A distinction was drawn by the
officials, however. between the loans
referred to at that time-such as
bond issues offered for public sale
and credit transactions intended as
checking account against the pur-
chase by belligerents of foodstuffs
and supplies from American firms.
The President realizes that this
Government has no legal right to OPP
pose loans of. any character, nor is
there any obligation of internation-
al law forbidding them. During the
Russo-Japanese War loans were
fioated for Japan in the United
States through public bond issues.
The President is understood, howev-
er. to be opposed to that form of
loan as liable to stir up i'll feeling
and prejudice.
Officials have unanimously decid-
ed to refrain from discussing the
subject of loans, as the position of
the Government in the circumstances
is an embarrassing one. When j. p,
Morgan & Co. asked the opinion of
the State Department several months
ago as to whether the Administra-
ton would approve of loan TO
France. the Washington Government
expressed itself against il. Bankers,
however. are not obliged to ask the
advice of the Washington Admins
tration and are Just as much at lib
erty to engage i'm credit loans as
American ammunition firms or horse
dealers are permitted to send NUM-
'OhS VI wal anu hOTSeS 10 DelllSer-
ent armies. The American Govern
ment is under no obligation to pre-
vent their shipment nor has il any
power under the laws of the United
States to prevent commerce in con-
traband. The burden rests in such
cases on the belligerents affected,
who can seize contraband. including
cargoes of gold on the high seas if
destined TO belligerent ports.
Under what is known as credit
loans, there is no intention, il is I'M
derstood, to export gold from the
United States. Large funds will be.
by the belligerent coun-
tries with their financial agents here
who will pay the bills of the Euro
pean nations to American dealers in
of war and supplies. The
bankers will be given short-time
notes by the belligerent govern
ments with a much better rate of in
terest, IL Is said, than ordinarily
could be obtained In return for
these considerations European gov
ernments will agree to spend large
sums of money in the United States
for supplies.
For All Kinds ar