The New York herald., 1921-02-22
NJ AD00 AND GLASS
COMPLETED LOANS,
ASSERTS HOUSTON
Secretary Says All His Acts
Met Objections of
Predecessors.
'ALLIES ARE SOLVENT
Capital Officially Hints
They Are Capable of
Paying Debts.
GERMAN BONDS OPPOSED
Would Have to Be Guaranteed
by Allied Powers. 1t Is
Held.
GERMAN BONDS OPPOSED
SpccidI Despatch to THE NEW YoRK HERAIp
New York Herald Bureau,
Washington, ID. C.. Feb. 81.

Spccidi Despatch TO TIE NEW iokk itEhALb'
New York Herald Bureau,
Washington, ID. g.. Feb. Fl.
Secretary Houston appeared before
the Senate Judiciary Committee to-
day to furnish further facts regarding
his conduct of foreign loans. credits
and advances. His predecessors in
office. Secretaries McAdoo and Glass
completed arrangements for all loans
and commitments, he said.
Commenting on the recent interview
of Mr.. McAdoo in which the former
Secretary is quoted as saying he OPP
posed further loans. Mr.. Houston de-
MED he had made any new loans. All
his acts. he said were in pursuance OF
obligations entered into either by Sec
retary McAdoo or Secretary Glass. He
thought Mr. McAdoo had spoken "un-
DER a misapprehension."
1t was officially suggested to-day
that the United States regards the
allied countries as wholly solvent and
capable of discharging their indebted
aess to this country.
The suggestion carried the idea that
this payment need not necessarily be
made either in money or goods.
Attention was called TO the fact that
the allied nations among them own
something like 10000. 900. 900 worth of
securities in foreign countries. offering a
possible means of settling with the
United States In the event they wish to
dispose of them
The suggestion is understood to have
been made in answer to objections that
have been raised in this country to col
lection of the allied debt on the ground
that payment made either in money or
goods seriously would disturb business
conditions in the United States.
While Government experts say II
would be an asinine policy TO collect
the indebtedness In goods, they point
out that an American invesement OF
something like 10000. 900. 900 in foreign
securities would be equivalent to the
Importation of so much In goods without
the consequent dislocation of American
markets, as would be the case I'm the
importation of commercial articles.
Even IL the investments abroad were
limited to the amount of interest pay
ments it Is suggested these investments
would cover the exchange market
Government officials repeated the
statement that the plan for the payment
of the Allies debts TO the United States
in German bonds would not be accept
able to the United States unless guaran-
teed by the allied Powers. II was said
that before acceptance OF German bonds
could be considered this Government
would have to ascertain:
The amount of bonds TO be issued by
Germany.
Whether the allied Governments would
guarantee the German bonds.
How the Allies would treat Germany.
making it possible or impossible for Ger
many to redeem the bonds.
The possible psychological effect of
American acceptance OF German bonds.
Acceptance OF them. II was said. might
create in the minds OF the peoples OF
the allied countries .he idea that they
were not obtaining indemnities from
Germany and the money was going to
the United states.