The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-18

tions which have come to his once In
the line OF promoting commerce, he said
II was the desire of the War Department
to sell to Belgium some rolling stock
that Is now in France.
1T is no good TO US and Belsium-not
the money available to buy that rolling
stock" said Mr.. Rathbone.
The chairman: II do not think there
would be any objection on the part of
the committee II you limited the amount
OF this loan TO purchases of our prop
erty in Europe. You would not object
to that, would you, Mr.. Sloan?'
Mr.. Sloan: mo. would not object
TO the Government selling and think
the Government could probably take Bel
gian bonds and take those bonds with a
maturity OF about the maturity of our
bonds chat is one thing in which am
very much ihterested), so II will be car
ried out in such a way that at the ex-
piration of the maturity of our bonds we
will have a foreign bond with which to
pay that bond. And / would not OBJ
ject. of course. to selling any machinery
or any supplies whatever and taking for
eign securities. but that Is not the pur-
pose OF this bill.
Mr.. Rathbone: TT IL only a part Of
the purpose"
Question of Authority.
The Chairman: I'm fact I doubt very
much whether the bill itself would per-
init that, because tho language of the
bill is not to permit us to sell articles
we already have over there and take
bonds for them"
Mr.. Rsthbone: Then there are OF
course a number OF commodities here
which are Government owned and for
which II has no use?"
Mr.. Sloan: "But that II a Govern
ment function rather than the building
up OF commerce so far as private In
dividuals are concerned. The large fea-
ture of this bill Is to build up private
commerce instead of the Government
adjusting its affairs"
Mr.. Rathlone: ut Ia the policy of
The Secretary OF the Treasury that so
far as possible. even IL this authority is
granted, the various foreign nations will
be asked to finance their requirements
through. private channels. They have
been asked already to do that. and to q
certain extent that has been done. But
during the transition period. before our
investors could be educated to take the
foreign investments, the slack has to be
carried to some extent by our banks, by
our exporting concerns, getting accom-
modations through the banks, and still
there will be something left. as far az
We can judge. that the Government will
have to carry. The proposition really. as
| see II, il the question OF whether we
want to continue to sell abroad. We
cannot sell them without extending
credits and II We do not extend credits
the inevitable effect has got TO be that
our goods are rot going abroad in any
where near the volume they have in the
past.
Line of Distinction.
Mr.. Moore: 81 would like TO distin.
guish between tho Government control
plan--I think I am speaking advisedly
before using that term-proposed by this
bill and the plan hitherto prevailing OF
establishing credits. that they are not &c
he established as they were hitherto
through banking houses
Mr., Rathbone: "Oh, no this does moi
contemplate any different plan. so far
as foreign loans are concerned. This
bill extends the time for the making OF
the loans and tho purpose for which ths
loans are TO be made. In selling rail-
way material or in selling cotton you
can hardly say now that would be ir
aid of the prosecution of the war or for
the national security and defence now
We are limited in making advances &c
aid in tho prosecution OF the war or fol
the national security and defence. and
| that Is the reason we inserted the pro.
vision we might make loans to promote
foreign commerce"