Evening star., 1914-08-16
NeutraIs May Obtain Money in
This Country, BeIIigerents
Barred by Wilson.
ADVANCED ATTITUDE
ON A M00TED QUESTION
BRYAN Issues Statement at Direction
of the President-Bankers Will
Follow Administration's Wishes.

Belhger6nt countries may not nave
loans foated for them in the United
States.
Neutral countries may negotiate such
loans.
Switzerland has been told that being
a neutral nation, there is no objection
to her floating a loan. This was In
answer to inquiry made at the State
Department by the Swiss charge DAFT
faires.
Official announcement of this policy
was made by the administration last
night. 1t was held that loans by
American bankers to foreign nations
at war would be in violation of the
strict spirit Of neutrality.
]. p Morgan & Co. were approached
by a group of private bankers, who
wished to know If a loan ever should
be desired by the Frensh government
whether 1t could be floated in the
United States.
gardless of it's legal right to engage In
private commercial transactions at its
own risk. 1t would take no action
which the State Department might dis
approve.
INQUIRY was made of Secretary Bryan
several days ago by the bankers as to
what the attitude of the American gov
ernment would be. The Swiss charge
d'affaires also presented an inquiry yes
terday.
To cover both inquiries the following
pronouncement of policy was issued by
Secretary Bryan at the direction OF
President Wilson:
q. S. Policy Outlined.
Inquiry having been made as to the
attitude of this government in case
American bankers are asked to make
loans to foreign governments during the
war In Europe, the following announce
ment is made:
There is no reason why loans should
not be made to the governments of neu-
trail nations, but in the judgment of this
government loans by American bankers
to any foreign nation which Is at war IS
inconsistent with the true spirit of neu-
trality."
attitude on the part of the United states
on a much mooted question. hitherto
loans have been foated in the United
States as well as other neutral countries
for the benefit of belligerents.
During the Russo-Japanese war. loans
for japan were foated in this country and
in Europe while Russia obtained money
from different countries in Europe.
International authorities have been
agreed that while the loaning OF money
is forbidden to any neutral govern
ment, her subjects might engage in
the practice without involving the re-
of their government.
Many writers. however have argued
that by furnishing the wherewithal 10
continue a war the loaning OF money
was inconsistent with a true spirit OF
neutrality and the Washington govern
ment has decided to adopt this view.
Reason for Loan.
DR.. Charles Paul Hubscher, the Swiss
charge d'affaires. who had long con-
ference with Secretary Bryan. said he
had no information as to the amount
of money desired by Switzerland or
through what firm it would be OBJ
tained in the United States. He said
it was not a governmental loan. but
a private banking transaction. He de-
clared that Switzerland, like the United
States, would, of course. observe strict
neutrality and refuse to loan any OF
her funds to belligerent countries. he
said Switzerland needed money to keep
her forces in the field to preserve her
neutrality and for her internal needs
inasmuch as she was hemmed in Wy
warning countries and money was
dire necessity on account of the gen.
eral paralysis in internatioal finance
that had visited Europe.