South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-12-05
international News Service:

international News Service:
WASHINGTON. Dec 5. - The
United States must continue the ex-
tension of loans to the allied gov
ernments, even after the declara-
tion of peace, it was definitely learn
ed today. Legislation granting such
authority will soon be asked of con-
gress by the secretary of the treas
ury.
Further loans TO the allies are re-
quisite for the reconstruction pc
riod. The governments associated
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 activ-
tiles the United States should be
prepared TO sell them on credit, even
after the declaration of peace, food
stuffs, raw materials and manufac-
turing products of which they may
be in need" said Sec'y of the Treas
ury McAdoo. I shall recommend
the enactment Of legislation extend
ing the authority TO establish credits
I
a reasonable period and within rea
sonable limits to meet needs grow
ing out of the war"
Total Now over Eight Billions.
The total of credits extended by
the United States to the allies to
date amounts to $8,196, ,666.
| These credits were established dur
ing the period from hyril "a, 1917,
10 date, approximately 19 months.
AT the beginning of the war con-
gress provided an appropriation Of
$40, 900, oO0,0 900 for the purpose Of
/ esta ablishing credits in favor OF for
eign governments at war with the
enemies of America The balance
of this appropriation, therefore, is
now 81. 1.S03.423,334.
Officials declined TO comment on
whether Mr.. McAdoo's decision to
ask congress for authority for a
continuation Of loans meant that
America would be called on TO grant
loans to the allies in excess of the
remaining credit balance, or whether
the authority was necessary because
the allies will soon be no longer
officially at war with the present
enemies of America Such com
ment was withheld as il cannot be
accurately determined now TO what
extent the allied governments will
require further credits.
VIII Use All This Year.
I II is known. however, from Sec'y
/ McAdoo's annual report. that the
treasury expects that all Of the pres
ent credit balance of the original
/ $40. 100000 appropriation must
I be extended as credit 10 the allies
I during the present fiscal year.
7 No estimate Of further loans in
! excess Of the $4,000. 600. 900 appro-
priation was recorded in the report.
I however.
Sec'y McAdoo has said that IT is
important that foreign loans be dis
continued as soon as may be, "hav-
ing due regard 70 the conditions OF
7 our industries and the essential
needs OF the foreign governments;
and in the meantime the loans
should be held down TO a minimum. ''
However. under this government's IS
policy. the imperative needs Of the
foreign countries will be provided by
Americs.. now holding the purse
strings OF the world. so as 70 pre-
vent the possibility Of internal strife
in the foreign countries. il was said.
Expect Valuable Information.
Valuable information as to the
future needs Of the allies. their
urgency and the necessity for meet
ing them from advances from the
United States. Is expected 20 be fur
nished from Europe by the inter
allied council on war purchases and
finance. OF which oscar 7. Crosby,
former assistant secretary Of the
treasury and now special finance
. commissioner Of the United States in
Europe. is chairman. This commits
sion was constituted in August, 1917,