The Washington times., 1921-11-12


for the first time In this article on
the disclosures OF the foreign loan
scandal contained In AN official re-
port now before the Senate Judiciary
Committee.
Here are some Of the more startling
disclosures set forth In the Russian
chapter OF the report as complied py
the committees counsel, Don NJ. Hunt
from the official Treasury Depart
ment records:
Moneys from this fund raised
from liberty loan drives and taxation
for prosecution of the war and au'
thorized To be loaned 10 foreign gov
ernments then at war with the
enemies OF the United States) went,
with the approval of the Treasury De
partment, TO the aid OF three sepa-
rate de facto governments In Russia,
namely, the Kerensky government
the Kolchak government and the
Wrangel government.
sIS7, ,129, $50 Advanced.
During his term of office here as
de facto Ambassador of the Russian
people Mr.. CBoris) Bakhmeteff has rep
resented first the Milyukoff- Kerensky
government. second the kolchak gov.
ernment OF Russia, third the Wrangei
government, and at the present time
there is no faction In Russia strong
enough to set up de facto govern
ment which he could possibly repre-
sent"
The official figures cited In the re-
mort TO the Senate Committee show a
total of $lS7.729.15O was advanced 10
the provisional government or Russla'
all on Bakhmeteffs or his assistants
/. o. US.
Not a cent of interest has been paid
on these loans except out OF credlts
specifically advanced for that purpose.
The report before the Senate JUDICIARY
Committee further says:
1--WE also hold obligations OF the So
called Provisional Russian Govern
ment for war material sold by the
War Department to various branches
of that GOV ernment, dated August 3,
1918. S4O6 092. We also hold oblga-
tions of the provisional government
for foodstuffs sent through the Amer
lean Relief Administration the sum
of si,465 ,465. This obligation IL dated
July |. 1919. This money was taken
from the Presidents fund OF $l5O,-
000, 900
Private Loans Floated.
I'm addition to these sums, there
were private loans in this country
through J. L. Morgan, the Guaranty
Trust Company. the National CITY
Bank and other large banking lnsu-
tutions prior to our entrance into the
war. These private loans to Russia
aggregate over s96, 900 900. Summing
up all these obligations, we find that
we are now holding Russian obliga-
tions aggregating over 1902 900 ,OO0.'
An official Treasury Department
statement submitted to the House
Ways and Means Committee in con-
nectiOn with the pending Foreign
Loan Refunding bill accounts for Rus
sian obligations to this Government
aggregating 1892, 60l.297. The accrued
interest was given as s26,l20,56O, max
ing the total debt OF the Provisional
Russian Government to the United
States Government 1921 1851.
The report to the Judiciary Com
nlittee has this to say further OF
moneys loaned to Russia:
I'm addition to these loans to the
Provisional Government of Russia
dlrcct. we hold the obligations ~
various subdivisions Of what was
formerly the Government OF Russia,
in the aggregate of over S3O,OOO,OOO
These obligations are from the GOV
ernment of Esthonia, Finland, Latva
and Lithuania.
Large War Contracts.
IF these governments remain as
separate governments, then. of
course, these obligations will eventu-
ally be paid by them, il at all. But
II Russia, when it finally energies from
it's present chaotic condition. insists
on recognition of it's original bounds
ries, these governments will be par
OF Russia"
The report continues:
when the United States Govern
ment first started making advances
to the Kerensky provisional govern
ment, that government then had TO
its credit in the National City Bank
os New York approximately $l1.ooo'-