Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-10-16
KEEPS ABSOLUTE CHECK
ON WAR SUPPLY ORDERS
Committee Sitting In London Con-
trolls Purchases In All Parts
Of World.
EXISTENCE JUST FOUND OUT
Seeks to Eliminate Positively COM
petitire Bidding by Allies In Exist
ing Open Markets, First of All i'm
United States.

NEW YORK. October l5.-Of the
country by the allies for war supplies.
not dollar, II was learned authori-
tatively to-day, can be spent without
iirst obtaining the official sanction Of
tho British government.
This sanction is obtained from p
committee sitting In London and hold
ing frequent sessions. Although tho
committee has been In operation for
MANY months. fits existence has not
heretofore been generally known out
sidc of governmental circles. Only
once. SO far as can he learncd--and
mandate OF this body been disre-
Earded
The personnel of this committee con-
sists of representatives of each of the
allied nations and controls absolutely
the purchase of all war supplies in
whatever section OF the world .hcy
may he bought. acts as financial
check and supervisor over all the war
chests OF all the allies and seeks to
eliminate positively competitive bid
ding on the part of the allies for war
supplies in the few open markets of
the world. first of all. in the United
States.
The committee is designated by a
French title. the English translation
of which is the International War
Supplies Committee"
Under It's guidance. Great Britain.
France, Russia and Italy. in seeking
munitions of war i'm the United States
and other supplies. refrain from com
petition in bidding.
Instead of coming into the American
market when supplies are needed and
wnging a financial contest for 81
premacy in obtaining the supplies the
allies have adopted n system OF plac-
ing one big order at time in this
country. When the contract for this
order is signed, the next allied ma
tons needs are taken up for consii-
Grafton.
COMMITTEE DOMINATED
ny GREAT BRITAIN
Great Britain. MS banker for the ul-
lies, dominates this committee Brit
iSh purchases. where convenient are
made in this country without consult
ing the committee.
One of the chief functions of the
British members OF the committee is
- act as Il mouthpiecc of the British
Treasury in alloting to allied nations
the amounts advanced by Great Bri-
TAIN TO them for the purchase of war
supplies in this country. Each couu-
try is financed TO a certain cxtent-in
the case OF Russia. almost wholly-by
Great Britain.
The only time the commItto..e Man
failed of operation was about six
months ago and the effects Of the fail
ure have not yet been eradicatcd
Russia had been notified BY the Brit
ish members OF the committee that she
might spend certain sum OF money
for war supplies I'm this country. The
sum Is believed to have been between
S200.000,00 and 5000 600 600 Whether
the allotment was fully understood ny
the Russian government Is not known;
but what Russia did was TO spend the
sum allotted and, in addition. make
huge commitments in this country for
further supplies. These commitments
were said to run into the hundreds OF
millions of dollars.
When the contracts came due. in
part, Russia had insufficient funds 10
meet them, and the committee. not
having authorized the making of the
contracts. had to devise quickly some
method OF paying the bills. This was
extremely difficult, and the demoraliZa-
ton OF the foreign exchange markets
in this country recently was attributed
in no small measure to this cause
single financial institutional r.
Morgan * Co.---acts as the disbursing
agency of the British government in
this country. Its disbursements are
understood to cover payments Of all
goods purchased for tho allies here.
The S500,000.0o0 Anglo French credit
loan just negotiated. it is said. will
provide payment for a large quantity
of goods purchased mere for Russia
Some experts estimate that as much
a half Of the loan. or $3.50. 900. 600, may
he used in paying for supplies for Rus
sia, chiefly for those for which she con-
tracted without the knowledge of the
"a nrnatiOpll fomnigSjop