The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-16
BRITISH OK. NEEDED
TO SPEND CASH HERE
Committee in London Must
First Sanction All Purchases
of Munitions.
DISREG.ARDED ONLY ONCE

Of al the vast sums which the Allies
are spending in this country for war
materials. 50 il was said here yesterday
on seemingly excellent authority. not
a cent can be paid out unless first the
British Government officially consents
t" the expenditure.
\ comnitte. with headquarters in
London. It was further learned, alone
gives such sanction. one and only one
case on record could toe found where
the dictates Of the committee IN the
matter of expenditures had been dis
regarded the country concerned in that
particular case being Russia.
Representatives Of all the countries
allied against Germany and Austria are
represented on the committee but so
far it has been Impossible to learn the
names OF the committee .Een. The COM
m!ttee has French name which might
he translated to the International War
supplies committee.
The body does not seek 20 control pur-
chases of Wa. materials made IN the
HON" na.kste Of "A nation Of the Allies
but It's sanction is necessary where ma
t,rialS are bought from others than the
nations at war or their colonies. Not
only purchases uf arms and ammunition.
hut OF all supplies needed 10y an army.
such as food. clothing. &c are super
viscd by the comm ttee.
The great banker for the Allies. Great
Britain. dominates the body. As one
of it, chief duties the committee acts
for the British Treasury in allotting
to the other nations of the Allies the
amouns Great Britain will allot in
given cases for buying war materials
tn America.
The only time the committees plan
failed of operation was about six months
ago, aud the effects OF the failure have
not Yet been eradicated. This was in con-
nee, on with purchases 10y Russia In the
United states.
Russia had been notified by the Britt
iSh members Of the committee that she
might spend "A certain sum of money
for war supplies In this country. The
sum was not disclosed yesterday. but II
is believed to have been between $780,
ou0,0n0 and $500. o00.o00 Whether the
allotment was fully understood by the
Russ an Government is not known but
what Russia did was to spenG the sum
allotted and in addition. make huge
commitments In this country for further
supplies, These commitments. covering
many months. We're said to run into the
hundreds of millions of dollars--a sum
far N excess of the amount allotted her
by the British Government
In making these contracts apparently
Russia failed To consult IN. committee.
When the contracts came due in part
Russia had insufficient funds to meet
them and the committee, not having
authorized tn" making of the contracts.
had to devise quickly some method OF
paying the bills This was extremely
difficult. and the decentralization of the
| foreign exchange markets in this coun-
! try recently WAS attributed in no small
/ measure TO this cause.
Since that time Russia has adhered
strictly to the wishes OF the committee
Not It dollars worth of war supplies is
purchased by her IN this country with.
out the con mttec's approval In return
Great Britain is paying her bills here
/ Not only these bills. hut those of Italy
and, more recently, France, are being
paid to-day by Great Britain.
\ single financial house.. 4. Morgan
! n co.--aCts as the disbursing agency OF
d the British Government in this country
! Their disbursements are understood e
/ cover payment of all goods purchased
for the Allies here.
b The $500, ,000, 900 Anglo French credit
= loan Just negotiated, IT is said. will pro-
vide payment for a large quantity of
goods purchased here for Russia,
Edward Il, Stettnius, who represents
I j, T.. Morgan " 90. in the purchase OF
/ supplies fog the Allies. was asked by n
reporter for THE SUN last night about
I the workings OF the committee which
/ had just come to light
81 have nothing t. say on the matter, -
! Mr.. Stettinus replied. 81 can tell YOU
| absolutely nothing.