New-York tribune., 1918-12-10
McAdOO Asks
Peace Loans
To Aid Allies
Secretary Declares Share of
u. S. Is Not Ended With
Cessation of Warfare
New Laws Are Needed
Extension of Credits to
Other Nations Urged OH
Congressional Committee

WASHINGTON, Dec. e.--Congress
was asked by Secretary McAdoo in n
letter made public to-day to authorize
the continuation of loans to the Allies
for one year after the termination of
the war to finance the purchase of food
stuffs and reconstruction materials in
this country.
NO additional appropriation for loans
to Allies was sought, but it was sug-
gested that the proposed peace-time
provision apply to the $1,000, 900 900
of the $10,000,0oO,OOO appropriated for
Allied loans, which Secretary McAdoo
estimated will remain unexpended when
peace is declared. Under existing law.
the United States may lend to the
Allies only for war purposes and dur
ing the war
In line with this policy the Secretary
also sought to have new legislation
provide that credits extended after
december 10 be for purposes growing
out OF the war;" 70 make their use more
flexible.
Other Changes Proposed
The present law requires that the
securities of foreign governments
which the Secretary of the Treasury
ls to take in exchange for loans must
be of the same maturity as that of the
preceding Liberty Loan from which
the funds came. Mr. McAdoo would
change this to give the Treasury linn
tied authority to determine the ma
turtles, in view of the prospective is
suance of short term bonds for the
fifth loan
Treasury officials have ascertained
that 1orelgn governments are prepared
TO Duy great quantities of food, iron
and steel, machinery, cotton and other
materials from the United States dur
ing the next few years, to aid in their
physical reconstruction programmes.
Since the United States has absorbed
much of the worlds supply of gold in
the last few years, the nations have
not the resources, either in cash or
ready credit, to pay for their purchases
without these loans, officials main
tain.
sl,50O, 100000 Available
Of the ,O0O.OOO,0OO authorized by
Congress for Allied loans, $7,6o8, $780,
1873 has been paid out as cash, and
SOL ,647,218 represents credits estab-
lished, but not yet advanced in cash
or otherwise made effective Secre-
tary McAdoo allowed $279 9,659,298 for
further credits for war purposes.
This made S8,50O,O00, 900, leaving
81 ,500,000,000 available out of credits
already authorized to be affected by
the legislation now proposed.
Secretary McAdoo wrote to Chairman
Kitchin of the Ways and Means Com
mittee as follows:
"The gross needs of the governments
of the Allies from the United States for
after -thewar purposes they have esti-
mated at a much greater total than
$1,000, 100000, but l believe investga-
tion will show considerable reduction
in such estimates. part of their re-
quirements may be provided by the
treaty of peace through awards in their
favor for reparation, either in money
or materials; a part will be provided
out of dollars equivalent of our mill
tary expenditures abroad, and a part
should prove possible for these coun-
tries to finance through sales of pri-
vate credit. A balance, however, is
likely to remain which it may be i'm
possible to provide other than by the
use of loans from the government of
the United States, and the above