Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1918-11-03
NO BONDS TAKEN
FOR THE MONEY
LOANED ALLIES
Congressman Sloan Calls At
tention to Fact That the
Law Has Not Been
Complied With.
BY EDGAR G. SNYDER.

Washington, Nov. 2-When Con-
gresham Sloan called attention OF
the house during the debate on the
last bond bill, TO the fact that ST.
600 100000 had been loaned to the
different allied nations, and not a
single dollar in bonds had been
taken from any one OF them, as pre-
scribed by law. look OF inquiry
showed itself on the faces OF the
members, but little further atten-
ton was then given. congressman
did not seem to remember. or grasp
the real significance of the delay.
Some months later when the last
revenue bill was being considered,
Mr.. Sloan in a speech called atten-
ton to the fact that the secretary
OF the treasury had not yet taken
a dollar in bonds from any nation
for the money loaned but had mere
" taken demand memoranda"
1t will be recalled that the'law
provided bonds of the same tenor
and effect as to interest. maturity,
etc. should be taken as were being
issued to American citizens when
they loaned their money to the gov
ernment.
The purposes in this requirement
were, first that no bond should be
taken that did not have the legisla-
tive authority of the borrowing
country expressed and evidenced
upon it. Second, the interest
should be coming to meet the
interest of our own obligations, and,
third, that-at the time, 10. 20 or 50
years from now. when our boys had
returned from the war and others
would be called upon to pay on our
bonds, there would be a substan-
tial fund in the treasury from which
to do it.
No Explanation Given.
No satisfactory explanation was
given why bonds were not taken.
More than a year has elapsed since
II. loans began to be made. 1t was
thought best that little be said until
after the fourth bond drive was over.
Meanwhile interest was becoming
manifest in different quarters.
May Cancel Debts.
1t may be recalled that an eJ
governor of Virginia, now menu
Der of the house, had suggested CAN
ceiling the debt to France. A reso-
luton had been introduced by a
western senator to forgive the debts.
The day after the bond drive was
over a Wall street lawyer. who fig
ures in international affairs. VS. re-
ported as setting a Y. NJ. G. A. au-
dience wild over the suggestion that
W. forgive these debts. Eastern and
southern papers have begun to dis
cuss the question.
Many c0&p.e the -.. ire to take
legal securities with the debt-can-
G ing propaganda. A . at m ny
people believe the legal evidence
of these bonds belong to our chill
dren and we, their guardians should
preserve and defend rather than sac
rifce it.
The magnitude of this question
and its possibilities may be COM
pre-. nded when it is said that the
amount of these loans, now 81
,5G0000,000 is 90 per cent more
than all the other assets in
GLIDING gold, currency and trust Sc
curities in the United States treas
ury.
Copies of Presidents Letter.
Three hundred thousand copies of
the presidents letter. calling on the
electors in the several states to elect
democratic congress. are being
sent out free under the frank of
Congressman Scott Ferris. chairman
of the democratic national congress
sional committee. This, while an in
teresting fact in itself, is doubly so
from the precarious and desperate
footing it has as public and frank
able document.
On the twenty-ffthe day of Oe-
tober one T. ]. Heflin of Alabama,
who has several times been rebuked
! by the house for abuse of record
privileges" caused this letter to be
pub.ished in the Congressional
Record. His right was challenged
by Congressman Gillett If Massa-
chusetts, not because the document
was what it is but that its insertion
was surreptitious and against the
rules govern matter to be in
serted in the Record.
Moved to Strike Out Letter.
Gillet moved to strike it out and
the house was ready to carry the
motion when Hehin in desperation
raised the question of no quorum
Democracy's majority was scattered
to the four corners Of he United
States. A So,500,0O0,0O0 appropria.
ton bill for support of the
army and navy awaited action. The
fact of mo quorum i..zisted upon
meant its failure of passage.
Here was dilema-Heflin, the
presidents acknowledged spokes,
man, defending political point o.
vantage obtained by subterfuge
while the boys in France and on the
seas interest counted not an iota BY
those defending the course pursued
Gillett, republican, could have pill
loried the president and Hefin il
their partisan folly, but no, repub
lican that he was, leading patriot,
party, placed patriotism above part,
and withdrew the motion amid thu
approval of nine-tenths of the house