The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-09-10
SENTIMENT AGAINST
MORE FOREIGN LOANS
Members OF Congress Surprised When
president Endorses Hoovcr's
statement.
NOW FACING DEFICIT
Prominent Representatives say Any
Further Loans WIN Have to be
Made Through Private Channels.
fBx WINpER n. HARRIsl

Washington, Sept 9.-President
Wilson's announcement in St. Louis
Friday night that he endorsed the
statement OF Herbert Hoover, that II
will be necessary for the United States
to Immediately advance four or hve
billion dollars for the rehabilitation o.
European credit and industry was re-
ceived with great surprise by mem-
bers OF congress-.
The statesmen were unaware that
the President entertained any such
idea, and they were not slow In let
ting It be known that II he recon-
mends an appropriation for that pur-
pose, 1t will receive scant considerA-
ton. Republicans and Democrats
alike were quick to declare that con-
gress would not vote for another cent
to be loaned to the European gov
ernmenta Now that this country has
financial difficulties OF it's own to con-
tend with and the people are clam
oring for relief from the heavy bur-
dens of taxation there Is all the more
reason. 1t was stated, why congress
should decline any further Authori-
zation of loans to foreign govern
ments
II Europe must have money from
America, 1t was the consensus Of
opinion that she will have to arrange
for il through private channels
Whatever financial assistance Is to be
rendered will have to be extended
through the banks and foreign cor
pcrations, it was made plain.
Indications now are that there viii
be a gap of Mt least $4,000. 900. 900 be-
tween receipts and expenditures by
this government during the coming
year. Some members Of the ways and
no AA1l 30
that the difference will be nearer $3,-
oo0, 900, 900. Bills already contracted
and which must he paid before July l..
1890, it is stated. aggregate $1,000
600 900.
The certainty that the treasury de-
partment will be confronted with this
deficit will necessitate either another
loan of $4,000, 100000 or $4,000, 0oo.-
900 or the rates OF taxation will have
TO be increased. The view in congress
is that there will be another loan.
Among the members Of congress
who took issue with the president on
the proposed loan to Europe were
Speaker Gillett and the following
members of the ways and means COM
mittee:
Representatives Longworth. OF Ohio.
and Green, of Iowa, Republicans, and
Kitchin, OF North Carolina, ranking
Democrat Representative Fess. of
Ohio. chairman OF the Republican
congressional committee, also took
this attitude Their views follow:
Speaker Gillett: ANY further ad-
vance for the rehabilitation OF Eu-
rope, which undoubtedly win have to
be made, because the United States Is
the great reservoir of free capital
must be made by banks and banking
corporations and combines, and not by
the United States government"
Representative kitchin Europe
will not get another copper cent from
the United States government by my
vote. The United States has done
enough. 1t has done more In this re-
spect than any nation or combination
of nations ever has done. We win not
tax our people any more for the BEN
eft Of other nations"
Representative Lengworth: This IL
the first time l have heard the presi-
dent on tho subject since he asked di-
rectiy for 81 500 900 900 in bonds to
be used as he saw At in helping the
allies to finance their foreign trade.
This request was made by the presi-
dent lust before he sailed for France
last December. The ways and means
committee unanimously refused to
grant it.
TN my opinion. the views OF the
cnsra1nistee members have not underr
gone change In this regard Congress
liz not going to advance any SUM at
all for this purpose
THE great trouble with the foreign
situation Is that 1t has been financed
heretofore on short time notes ex-
tending over a period OF three to six
are unable to pay for goods they need
within six months.
The house last week passed a bin
permitting National banks to invest
not exceeding five per cent OF their
capital and surplus in a corporation
or corporations financing foreign
trade. In doing this the government
is indirectly lending its aid through
the national banks