Evening star., 1920-01-02
VAST j. s. LOANS
TO HER ALLIES
OUT OF QUESTION
Sensational Story Regarding
Advance Is Seen as Drive
at League.
BY DAVID LAWRENCE.


Loans by the government of the
United States to England or France
are out of the question. Publication
of story to the effect that Viscount
Grey went home with the pledge of
the Wilson administration for
s13. 900. 0OO, 900 loan has revived the
subject of international finance and
given the Treasury Department an
opportunity to place it's views un-
equivocally before the public. Here
is the way one of the assistant sec
retaries of the Treasury phrased IT:
IF England really wanted $13.O0O,-
she could not spend that amount in
five years. If she wanted that sum
the Treasury would certainly not
agree to recommend such loan TO
Congress. If the Treasury did rec
ommend it, Congress would certainly
not agree to it. And If Congress did
agree, the money could not be raised
from the people of the United States.
That's all there Is to it."
Suspected Purpose OF story.
The purpose of the story is con-
sidered here to be interviewer with
the campaign against the league CT
nations. Opponents of the treaty have
sought to make it appear that the
United States is yielding everything
and giving away everything to Eu-
rope, and particularly Great Britain.
For instance, in the last two weeks
much discomfort has been aroused, in
quarters where anything anti British
matter of the big German ships which
were ordered returned to England. AS
matter of fact the solemn word of
the United States was pledged to give
those ships back to England immedi-
ately after our War Department got
through transporting troops to Amer
lea. The fact that England was delay
ing the return of some ships belong
ing to America was the fundamental
reason for the Shipping Boards dis
of the big German liners. but Presi-
dent Wilson took the position that
America would keep her pledges re-
gardless Of the outcome or merits of
the controversy which had separately
arisen over other ships. Indeed, the
England to adjust that question in
due time.
But the publication of the story
about a $4,000. 100000 loan does not
have even the basis which attaches
to the controversy over ships. Yet the
and parcel of the campaign to keep
antipathies alive between the United
States and England.
AS far as financing Europe is con-
cerned, a great deal of misrepresenta-
ton has been let loose in an effort
Of the executive branch Of the gov
ernment today Is merely the out
growth of a desire to keep on%loan-~
ing American funds to rehabilitate Eu-
r'ss Since ths armistice ths N 'tsifsd {
States government has loaned about
s2,32s, 100000 to the allied govern
ments, mostly as credits for American
foodstuffs, so that America can hard
ly be accused of illiberality. On the
other hand, the viewpoint Of the
United States government cannot be
Of Secretary Glass himself, who says:
Secretary Glass View.
The Treasury believes that the
need of Europe for financial assist
ance, very great and very real though
here and abroad. Our hearts have
been so touched by the suffering
which the war left in its train. and
our experience is SO recent of the
financial conditions which existed
during the war (when men were de-
destruction) that we are prone to
overlook the vast recuperative power
inherent in any country which, though
devastated. has not been depopulated,
and the people of which are not
starved afterward We must all feel
Europe today. but we must not allow
our sympathy to warp our judgment
and, by exaggerating Europe's finan-
cial needs. make it more difficult to
fill them. Men must go back to work
in Europe, must contribute to in
Europe. of course. cannot be set to
work without raw materials. machin-
cry, etc, and to the extent that these
are to be secured from the United
States the problem of financing the
restoration of Europe belongs prima-
rily to our exporters"
Exception In Central Europe.
The only exception to the above
which has been made is in the case Of
central Europe. where starvation is
already beginning. Congress has been
asked to loan a few hundred million
dollars to relieve the food situa
ton in Austria. Great Britain has
will share in the effort. Outside of
the distressing condition of the small
er countries in central Europe. how
ever, which involves at best only
relatively small sums, the viewpoint
of the Treasury is unchanged.
The United States is through with
large loans to her allies. The Treas
ury believes it would be unsound
finance to continue them. Europe is
fully expected to finance herself, first,
by domestic loans designed to re-
move some of the large amounts of
inflated currency that were made
necessary by the war; second. by in
tensive taxation. something that
Europe neglected during the war.
and. third, by buying raw materials
in the United States as reasonably
as possible and sending back to US
finished products at prices low enough
to attract American consumers. so
that America will start buying some
thing from Europe, and thus begin to
offset the tremendous export balance,
which is keeping the rate Of ex-
change so low.
Production in Europe depends most
ly, however, on political conditions.
And back of that are the factors of
labor and mass unrest European
governments say that until the treaty
can be put in operation and the moral
support of the United States is as
sured as against the political disin-
tegration of the allies there will be
no definite progress toward recon-
struction. Anyway. the government
of the United States has ceased loan
ing money to foreign governments,
and the problem is entirely one for
private financial concerns and export
houses, .and the truth is the officials
of our government are keeping as
close a watch on Uncle Sans pocket
book as they can.
Copyright, 1912