The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-12-27
EXPLAINS REASONS
OF LOANS TO ALLIES
Maintains Their Economic System,
and lima bles Them to Maintatn
Military Effectiveness.

There is much popular interest and
great public ignorance Of the manner
this country b. lending money TO the
allies, and about the benefit II any
that win accrue 30 the United States
from the financial assistance that has
been planned OF already given 10 for
sign countries
The Virginia council Of defense
gave out statement Yesterday deal
ing with these matters 1t Is based
ON a statement received few days
ago from The United States treasury.
II is stated. In the frat place, that
the loans made by the United States
70 the governments az war with Ger
many are arranged by Secretary OF
the Treasury McAdoo and submitted
TO the president and made with his
approval
The secretary states that his judg-
nent in making these loans IL de-
termined largely by the monthly re-
quirements OF the applicants The
several powers, through their duly
authorized representatives.. make their
representations as TO their Necessities
for carrying on the war. and after
discussion the various amounts are
arrived at.
These loans, says the secretary. are
essential for our own protection. not
only for our protection In a military
way, but for our economic protection
and welfare. The production of the
United states has been speeded up
and greatly stimulated. We are pro-
dncing more than our own needs. and
our own economic protection and well
fare demand that we sell much of
our products 10 our allies. TO ac-
complish this we must extend these
credits to enable them to buy our
products.
Their commercial salvation is an
essential part OF their effectiveness In
the war. and their commercial we'll
being demands that their export trade
be maintained In a considerable Mas
ure. They must keep their civil popu-
lstIon engaged to the extent necessary
TO sustain their Industrial and eco
nomic existence. II is sound economic
policy on our part to assist them In
maintaining their Industrial life and
economic welfare
Very little OF the money loaned to
our allies, the secretary states. goes
put OF the United States. Most of II
IL spent here for war materials and
foodstoffs. The money We are ad-
sancing Is NOT contribution: 1t is a
loan. on which they will pay interest
and which ultimately will be paid In
full Our allies are looked unon by
us as solvent peoples, without ready
money but with perfectly good credit
Their expenditures OF this money
In this country are supervised nv US.
Their purchases are mado with the
ADVICE and assistance Of our war In
austries board. This system not only
protects the borrowing ally but pre-
vents competitive bidding against the
other allies and the United States
Itself, and obtains for the borrower
he same prices, the same terms. ana
tho same treatment our own govern
fuent demands !a making It's own pur-
>hases
When one remembers THAT the loans
de he Fighting that otherwise the
American army would have 70 10 ~
mach expense. not only Of men but
'f money money which would not he
-ef grue3 Il rs and lives that could
ever he restored the wisdom % our
policy III financing our allies is plain
e. everyone l. is not only a duty 10
hen that We are performing IN loan
Wg them part Or our great wealth
Z ss "a Sres; duty We are perform IN x
a oar soldiers and sailors and our
fv "a ua'inu III baking our allies pow
.r'-' and effective thus lessening the
s.IN and danger and suffering for
rnr OVID n1oH and in bringing the war
u an earlier close.