The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-09-15
Government WON'T 7
I OPPOSE BIG LOAN
On Basis That II Moro Arrangement
OF Credits There WIN BE No OBJ
lection Urged.
WON'T INVOLVE NEUTRALITY
Under Mr.. Bryan's Original Rnling No
Loan Could BE Made Direct 70
European Nations AZ War-No
Publicity As TO Plans Thought
Desirable.

Washington. Sept. 14.--It may be
stated on authority that the Washing
ton government will not attempt to
discourage the placing Of the huge
loan desired by the allied financiers
now in New York, provided the loan
sought is In the nature Of an arrange
ment for credits. There are no i'm
dications at this time that the con-
templated loan Is anything more than
a credit loan, SO this disclosure of the
governments attitude Is regarded as
sufficient to put at rest reports which
had arisen to the effect that the plans
OF the bankers might meet with OPP
position at Washington.
While It was said officially today
that the matter of the aspects OF the
loan plan which might involve Ameri-
can neutrality has not been brought
to the attention OF the State Depart
ment in any formal way, there were
reasons for believing that some high
ofilcials of the government have al
ready acquainted themselves with the
fundamentals OF the plan for the loan
and the attitude of the government
has been fixed.
Don't Want Too Much Publicity.
Offlcials are hopeful that the ques-
ton will not be placed before the gov
eminent in any way calculated to
necessitate . formal disclosure OF its
policy. In the view OF some State
Department officials 1t will be far hap
rier for the relations between Ger
many and the United States II the
American bankers and the visitipg
commission 20 forward with the for
mutation OF their plan without turning
TO the government for advice. 1t seems
safe to state that II the bankers pur-
sue this policy in arranging for a
credit loan OF whatever proportions
no volunteering OF unfavorable sug-
gestions from tho State Department
need be anticipated.
The policy Of tho administration
toward the loaning OF money to Euro
pean powers after the outbreak OF the
war was disclosed by Secretary OF
State Bryan In response to an inquiry
from tho Swiss minister a. to whether
an effort to secure a loan to the Swiss
Government in the United States
would meet with opposition. Score.
tary Bryan let It be known that the
government would not Oppose loan
to any European country at peace,
but 1t was understood at the time that
he expressed opposition to loan OF
31oNooo.ooo to the French Govern.
mont, which q New York Arm, said
to be J. r. Morgan & Co.. had under
consideration. The project wa
abandoned.
1. Mr.. BryAn's View.
Later Mr.. Bryan stated the position
OF the government with respect te
loans to beligerent governments IN
more detail In 4 letter to Chairrnan
Stone, OF the Senate Committee on
Foreign Relations. substance hs
said that the government could moi
oppose credit loans which were de.
signed to accoxpmodAte the actual
purposes Of these governm ents In tbs
United States, but that the loans o,
sums In gold directly to tho govern,
ments, to be used by them In carrying
on the war. would be regarded by the
government as inconsistent with the
Spirit. II not the letter. Of neutrality
The plan OF the New York bankers
as indicated this morning 10 to ar
range a loan Of billion dollars. to
be expended In purchases in the United
States It Il not know whether tbs
state Department would take steps ia
discourage the loan should 1t eventual
Nv be disclosed that It IL not In fact
a credit loan. No definite statement
in this regard was obtatnabie today.