New-York tribune., 1919-09-19
Morgan Opposed to
T.. S. Guarantee of
Foreign War Debt
Replying 10 Wood, Finan-
cier Says Policy Would
Be Unwise and UnsOund
for All Concerned

In behalf of J. r. Morgan, who IS
abroad, Thomas W. Lamont, of j. Z
Morgan & Co., yesterday publicly
stated Mr.. Morgan's views on the pro-
posal to guarantee the war debts of
European governments. The statement
was issued to correct the impression
that one might get from reaGing letters
referring to the financicr's views by
Henry A. Wise Wood to the press and
to members Of Congress.
"Thc views attributed to Mr. j. 7.
Morgan (who is at present abroad) by
Mr.. Henry A. Wise Wood, in letter
to "Thc Evening Mail" Of September 16
are precisely contrary to those which
Mr.. Morgan holds" according to Mr..
Lamont. "Mr. Woods letter has, | am
tod, been sent for publication to sew
eral other newspapers and circularized
among members of Congress. The let
ter declares that certain Mr.. O'Nell
land) Guardian" stated to Mr.. Wood
that Mr.. Morgan was in favor of a plan
by which the United States should
guarantee war debts of foreign nations
''Unsound and Unwise''
lievcs, as do all Of his partners, that
to have the United States guarantee
foreign debts would be as unsound anil
unwise economically for the foreign
nations as It would be for tho United
States.
Last spring general publicity was
given to a plan, tentatively suggested
in Paris By British economist. Ac-
cording to this plan, Germany shouI1
make a bond issue, in order to obtain
funds for the purchase of raw materials
in America, and Great Britain, France,
the United States and the other allied
nations should guarantee this bond
issue. This suggestion, which was
purely informal. was, as the newspapers
stated at the time, laid tentatively be-
fore the American financial delegates
at Paris. My colleagues and | immedi-
ately took the ground that no PROPOSE
tion implying tie guaranty IN any way
by the United States of foreign in
debdtedness coLld, or would, be consid-
cred.
ANY question. such as the interna-
tionalization of war debts, is of far too
great Importance to be made the sub
ject of idle rumor. J cann,t, howeve
find that any attempt was made by the
writer Of the letter to obtain by in
q Try from him or from some Of his
partners Mr.. Morgan's actual opinion
~ hiSpdlCH IOU W dSllliElOl NeSlPT-
day carried the report that Great Brit
ain and France had started to pay off
their Indebtedness to the United States
Treasury, which advanced almost S1O,-
600 100000 to the Allies during the war.
It was said that Great Britain has paid
back S22,500,000 and France $500 900.
The total amount advanced to Great
Britain was S4,3l6, 6,000,000 and to France
SO ,047 ,794 900.
Report Denied
The best. informed international
bankers here denied knowledge Of the
reported payment of funds back to the
Treasury, and all inquiries were re-
ferred to Washington officials.
The details of Uncle Sans part AS
banker for the Allies are not known
outside of government circles. Bankers
here are uncertain to when interest
Oh the loans would start. 1t was SAID
yesterday that interest did not begin
Immediately. and reports have per-
sisted for some weeks that an arrange
mcnt had been made to abate interest
charges for the time being