The Washington times., 1915-06-08
Exchange of Bonds By
Nations Is Possible
Diplomatic Credit Plan
Dollar Diplomacy Achieves New Significance When
Bryan's Suggestion Is lndorsed By Wander
lip at Uruguayan Dinner During Pan
American Conference.
By JUDSoN C. wELLIvER.

by JODSON ~
Dollar diplomacy acquired a new sig
nificance, a new and distinguished con-
vert and a new and remarkable CO.
operation in It's support. during the re-
cent Pan-American financial conference.
The incident has not had the attention
II deserves. for 1t Is already regarded
in Washington as Of the most wide
reaching significance. Perhaps the story
Of how the thing happened ought to be
related very briefly by way of prelimi-
nary.
1t was at a dinner. given In honor OF
the Uruguayan delegation In the con-
ference. Secretary of State Bryan was
among those in attendance. When 1t
came to him to speak he ventured. very
modestiy and tentatively. q suggestion.
He admitted that he made 1t on his own
personal behalf alone; did not speak
for the Administration or his colleagues
in power. He did not commit himself
to the development and support OF the
idea; but he did put 1t forth as worth
thinking about in this time of world
wide financial stress.
Lend u. s. Credit.
Mr.. Bryan's suggestion was that II
the republics of the Americas we're In
need Of money in such a time as this,
they might very naturally turn to the
United States for help. He suggested
that given country. in need Of help.
Issue Its bonds at say per cent, deposit
them with the United States Govern,
ment. and take in exchange an equal
amount of 3 per cent bonds Of this Gov
Tho a.
would have ready sale II any nations
securities on earth would sell. and the
transaction would cost nobody any
thing; 1t would amount to lending tho
credit Of the United States. on the Sc
curity Of the bonds of the other country.
When Mr.. Bryan ventured this hair
raising suggestion the faces OF the din
ers presented study. Nobody laughed.
though 1t was evident from expressions
ana the whispered exchanges that the
iuea was regarded as quite more fam
tastlc than anything that had yet come
even from the Bryan brain. Still. ey-
erybody maintained q respectful atti-
tude. as one must do when the secre-
tary OF State speaks at the same table
The very next speaker was Frank A.
vanderlip. president OF the greatest
company looked relieved at the prospect
OF some financial sanity by way of an
tidote-but also bit worried, lest Mr.
vanderlip might tell Just a bit Of what
posals in populistic finance -
He did, too: but II wasn't what tho
company was expecting.
Mr.. Vanderlip looked the expectant
company over with unusual elaboration.
squared himself to his business, and be-
gan: .sr.s- =. .
The Secretary Of State has either
risen to the heights or fallen to the
depths don't venture to say which
of real financier."
Gives 1t Seal Of Approval.
The company gasped.
1t was as still as a funeral bowing
for the benediction. Mr.. Vanderiip pro-
ceeded to set the stamp OF his complete
and sweeping approval on tho Bryan
idea He discussed II as n big and
workable proposal. one that he as a fl
nancier. interested in the expansion Of
American business. and the closer re-
lationship of the American countries,
not only could indorse. but could en-
Enthusiastically approve. He suggested
the bsness ,d Of the 5nt crisis s. II which G the
for correspondingly big and effective
measures to meet It. He alluded to the
fiscal statecraft OF Mr.. Lloyd-George.
chancellor of the British excheduer. who
ueNl8cu eAptuitnLS HlceIlHB tne IL
nancial necessities Of the war. brought
the fiscal authorities of the allies pow
ers into great cooperation that
amounted to pooling their credit and
faith. and to the fact that England had
been made the head Of this cooperative
scheme. The parallel between what
they have done, in behalf Of their war.
Mr.. Vanderlip showed. and what Mr..
Bryan had suggested the American ma
tions should do In behalf Of their peace.
was complete.
So much for the incident OF the
Uruguayan dinner. The company was
small one. and while the remarks Of
Mr.. Bryan we're generally quoted. those
of Mr.. Vanderlip indorsing the Bryan
project have received nothing like so
are still imagining that Mr.. Bryan sug-
gested something that no sane financier
on earth would indorse. But the facts
are beginning to be understood and
they are highly interesting.
Big, Practicable Idea.
1t develops, according to mutual
friends of the Secretary and the head
of the greatest bank in the new world,
that during the Pan-American gather
ing Mr.. Bryan and Mr.. Vanderlip not
only got we'll acquainted. but develop
ed a disposition to be thoroughly chum-
my. They managed to get together at
dinners, receptions, conferences. and to
have a vast deal TO talk about. Every
body who was at all regular in at
tending the gatherings noted their in
timacy, and 1t was good deal COM
mented upon commonly as one OF the
amusing tncidents. Had Nebraska
radicalism won over Wall Street, or was
Wall Street ingratiating itself with
trans Missouri populismf
1t develops that neither or these ex-
plantations quite reaches the facts. Mr..
Bryan had ventured his idea to Mr..
Vanderlip and the latter liked It. He
declared that It was, a big. practicable
proposal that would do more to cement
the interests of the Americas than
anything else that could be done at
such time as the present 1t would
provide the South American govern
ments the credit they need now. and
make possible to draw on the great re-
seyes, in wealth and fiscal stability.
of the United States. to establish the
verv kind of relations that both sides
insist they desire.
T Serious Consideration.
As a result, the proposal is getting
most serious consideration, especially
among washington leaders who know
how favorably it is regarded in financial
circles, The National, City Bank ctrcu-
lar. for lime has given unqualified In