New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-16
LOANS TO RIVAL
POWERS BANNED
J. p. Morgan & Co. to
Abide by State Depart
ment's Wishes.
NEUTRAL NATIONS
TO HAVE FREE HAND
Lending to Belligerents Held In
consistent with True Spirit
of Neutrality.

Washington, Aug. l5.-The United
States announced its opposition to-day
to the floating of loans in this coun-
try for the benefit of any of the bel
ligerent powers of Europe.
Switzerland. a neutral country, in
ouired through her charge d'affaires II
she might float loan here, and was
informed that the restriction Would
not apply TO neutral countries.
J.P. Morgan & Co. were approached
by a group of private bankers who
wished TO know if loan should be
desired by the Frer III government
whether it could be foated in the
United States. The Morgan firm an
nounced that, regardless Of its legal
rights TO engage in private CONNER
cial transactions at it's own risk, II
would take no action which the State
Department might disapprove.
Inquiry was made Of Secretary
Bryan several days ago by the bank
ers as to what the attitude Of the
American government would be. To-
dav the Swiss Charge d'Afaires also
presented an inquiry.
To cover both inquiries, the follow
ing announcement of policy was issued
by Secretary Bryan at the direction OF
President Wilson:
ENQUIRY having been made as to tht
attitude of this government IN case
American bankers are asked to make
loans to foreign governments during
the war in Europe, the following an
nouncement is made:
"There is no reason why loans should
not be made to the governments or
neutral nations, but in the Judgment
of this government loans by American
bankers to any foreign nation when Is
a. war is inconsistent with the true
spirit of neutrality
This principle represents an al
vanced attitude on the part OF the
United States on much mooted ques,
tion. Hitherto loans have been hosted
i'm the United States as well as otne.
neutral countries for the beneht OF
belligerents. During the Russo-Jap,,
snese war loans for Japan were hoated
in this country and in Europe, WINE
Russia obtained money from dinereho
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 respoh-
sibility of their government. Many
writer's. however, have argued that by
furnishing the wherewithal TO continue
war. the loaning of money was IN
consistent with a true spirit Of neu-
trality. and the Washington govern
ment has decided to adopt this view.
DR.. Charles Paul Huebscher, the
Swiss charge d'affaires, who had long
conference with Secretary Bryan, said
he had no information as TO the amount
of money desired by Switzerl and or
through what firm it would be obtained
in the United States. II was not
governmental loan, but a private bank
ing transaction. He declared that
Switzerland, like the United States,
would, of course, observe strict neu-
trality and refuse to loan any Of her
funds to belligerent countries. Switzer-
land needed money to keep her forces
i'm the field and for her internal needs,
inasmuch as she was hemmed in by
warning countries.