Every evening, Wilmington daily commercial., 1921-02-21
RUSSIAN LOAN USED
TO PAY DEBTS IN U.S
Brief for Secretary Of Treasury
Filed in Hearst Suit. Explains
Status of Funds.

nv A.sociatAd Press to Every Evening.
Washington. Feb 2I.-Denial that
any portion Of the money advanceo 10
the Kerensky government or RUSSIA ~
atill under the control or Secretary
Houston was made by Solicitor General
William L. Frierson. in brief hied
today with the District Supreme Court
IN rcsponse 10 the suit brought by VIII
liam Randolph Hearst of New YORK
- +. taxpaver. TO enioin the Secretary
- IN, Treasury from further financial
transactions with foreign governments
Th, brief also denied there was any
intention on the part of the Secretary
Of permitting funds under his control
L. h.. paid 10 tho KerenslSy or any other
Russian government. Mr.. Frierson de-
clnrcd there was no occasion for an IN
junction as the defendant has no IN
tcntion OF establishing further credits
- any foreign governments, "as must
have been known TO the plaintin when
hc nled his bill
With regard 10 the payment OF the
uncxpcndcd balances now existing in
favor of Czccho- -SlovalSia. France.
Greece. Italy and Liberia. the solicitor
General contCnded the faith of the
government was pledged" because these
credits we're established under author
ny of Congress.
Describing the transactions between
this government and the Kerensky
government. the Solicitor General de
clared the credits were established and
aa,ances mad, ''lust as they were made
t. any other foreign government, and
whom made were entirely free from tho
control of the Secretary of the Treas
my.
~ is not true Mr.. Frierson said. that
tEar, * any existing credit in favor of
ih kcrcnsky OF other Russian govern
la..t nor that any funds belonging TO
th. I niiCd States have been placed in
sh, National city Rank OF any other
lar3 subject to the check OF the
k,r.nsky OF other Russian govern
iu,nt with the approval Of the secretary.
the time of the overthrow Of the
I>tI.usky government. Mr.. Frierson ex-
p.aired tho balance Of the credit in its
fs,or was withdrawn and there re-
maiucd IN the hands Of the kerenslIy
representative in this country about
$50. .o0o. 900.
while this money had been paid over,
vast as advances tn other governments
vcre paid. thc Solicitor General as
rt.~d. and the Secretary Of the Treas
8N had no control over II. he was
..>.ous - sec that il was applied to
r satisfaction of obligations which
t.. ,<,rrrsky government had incurred
ihls country. and succeeded in secur-
.rA an agreement by which 1t was
a.pnsited in the National City Rank to
l1e credit Of the kercnsky government
~ it's representa- tivcs. with an under
tanding that the Secretary OF the
@rrea sury should ho notified before with
drawals were made from the deposit
This money did not belong 70 the
United States. since il had been pre-
iously paid to the representative of the
KerensNy government, and the arrange
ment referred 10 WAS made because that
representative was willing 70 have the
funds then in his hands applied 20 the
satisfaction Of American debts,
In submitting that no induction
should be issued. Mr. Frierson assorted
hat the Secretary did not admit that
The plaintiff had status emitting him
- call in question tho various credits
or that the court has any jurdisdictfon
70 determine tho controversies.