The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1918-12-05
EXTENSION OF LOANS TO-
ALLIED GOVERNMENTS
NEED HELP UNTIL NOR.
NAL CONDITIONS.
Secretary McAdoo Announces
He Will Ask for Neces.
sary Authority.

| Washington, Dec. So. N, ST.
The United States must continue The
] extension Of loans to the allied gov
I ernments, even after the declaration
| of peace, 1t was definitely learned
today. Legislation granting such ap-
| thority will soon be asked of congfVBs
by the secretary of the treasnry.S
Further loans to the allies are
requisite for the reconstruction PEE
, riod. The governments associaHd
with the United States in war must
! have food for their peoples and raw
materials to rebuild their countries.
! Until certain of the allied coun-
| tries can resume their normal accyi-
! ties, the United States could be pre-
| pared to sell them. on credit, even
after the declaration of peace. foqq-
4 stuffs, raw materials and manufff-
| tured products Of which they nl8y&po
| in need" said Secretary Of tke Ttes
iury McAdoo. VI shah .re00snfn6da
| the enactment of legislation extend
| ing the authority to establish credits
| in favor of foreign governments for
| reasonable perioh and within rea-
sonable limits to meet needs growing
out of the war;"
The total of credits extended by
the United States to the allies to date
amounts to $S,196,576,666. These
credits were established during the
period from April "a, 1917, to date,
approximately nineteen months.
At the beginning of the war con-
| gress provided an appropriation OF
| $4,000, 100000 for the purpose OF es-
| tablshing credits in favor of foreign
governments at war with the enemies
| Of America. The balance of this ap-
| preparation, therefore, is now $l,SO3,-
| 423,334.
officials declined to comment on
| whether Mr.. McAdoo's decision TO
ask congress for authority for con-
! tinuation of loans meant that Amer
| lea would be called on to grant loans
| to the allies in excess of the remain
ing credit balance, or whether the
authority was necessary, because the
allies will soon be no longer officially
at war with the present enemies or
America. Such comment was with
| held, as it cannot be accurately de-
| termined now to what extent the al
| lied governments will require further
| credits.
Total Loans.
| It is known, however, from Secre-
| tary McAdoo's annual report that the
treasury expects that all of the pres,
| ent credit balance of the original
| $40, ,00O, 900 900 appropriation must be
extended as credit to the allies DUR
| ing the present fiscal year.
No estimate of further loans in ex-
cess of the S10,00O.000,000 approprla-
| tion was recorded in the report, how
| ever
Secretary McAdoo has said that it
is important that foreign loans be
| discontinued as soon as may De-
"having due regard to the conditions
| of our industries and the essential
needs OF the foreign governments:
and in the meantime the loans should
! be held down to a minimum" How
ever, under this government policy,
the imperative needs of the foreign
countries will be provided for by
! America, now holding the purse
strings of the world, so as to prevent
the possibility of internal strife In
| the foreign countries, 1t was said
| Future Needs.
| Valuable information as to the fu-
| ture needs of the allies, their urgency
| and the necessity for meeting them
from advances from the united
| States is expected to be furnished
| from Europe by the inter allied coun-
| Gil on war purchases and finance OF
which Oscar r. Crosby. former as
sistant secretary of the treasury ana
| now special finance commissioner Oh
| the United States in Europe. is chair
man. This commission was constl-
| tuted in August. 1917, and through
| relationship of the commission to the
war industries board. the purchases
of the allies have been co-ordinated
! with those of the United States.