The Washington times., 1921-02-12
SECRECY ON LOANS
ATTACKED DByB0RAH
Senator Indorses Hearst Suit in
Hearing Before Foreign Re-
Iations Committee. =
CONTINUED from First Page

iIoih II st deN''
gime by the Bolsheviki, obtained
money from Treasury Department
sources and is about to obtain further
funds, the money being drawn on
is not wholly furnished by the United
States Government, Treasury officials
say. 1t Is admitted, however, that
some of it is United States funds, but
it has all been thrown together in
the general fund, and 1t would be
difficult to ascertain just how much
of the fund has been obtained from
sources which owed the money to
the Russian government before the
war and have during the war settled
their obligations.
N. y. FUND SUPERVISED.
1t is well-known fact. it is said,
that the funds on deposit in New
York city which have been drawn
upon by the Kerensky ambassador,
Boris Bakmeteff, have been rigidly
supervised by the Treasury and that
no check was honored unless the
Treasury Department here gave it
permission. This money, it is said.
by officials Of the Government. who
are close to the financial situation,
has only been allowed to be paid out
to manufacturers in this country,
who supplied material and munitions
to Russia in the early stages of the
war, and IL was to prevent them from
losses that 1t was supervised.
Commenting an the shutting down
Of money to foreign governments. one
Government official said that at this
time more than and other, the United
States should pay strict attention to
its financial obligations to foreign
governments otherwise we might have
to send a fleet and an army to some
OF the European countries to collect
the debt owed us. 1t was contended
that as the United States Government
has already paid out to foreign gov
ernments more than nine and a half
billion dollars, that IL any of the re-
naming half billion is due the foreign
governments the United States should
rigidly stick to its agreement so that
when the time came for payment, we
would be free from any suspicion that
we had ever tried to dodge out finan-
ctal obligations.
Officials Of the Treasury Depart
ment in refusing to comment on the
suit Of Mr.. Hearst against the Secre-
tary OF the Treasury said that any
thing the Secretary would have to
say in reply would be made to the
Supreme Court Of the District OF Co
lumbia, as the supoena requires him
to reply to the court and not to news
papermen.
TECHNICALLY At WAR
In commenting on the principal
charge brought out by Mt. Hearst
that the money was appropriated only
TO be used by nations which were at
war with an enemy of the United
states, officials said that the United
states was only technically at war
and that no warfare between the
United States and the entente powers
was now going on and no warfare was
being waged by any nation with the
entente powers. That the money
which was being sent abroad for
civilian relief was a military measure,
=, was one OF their contentious. They
said that the money was being used
for welfare, which was one OF the best
bmeans OF combating the Bolshevik
movement which 10 allowed to go on
would mean armed warfare in Europe
again and possibly would reach this
country.
The Secretary OF the Treasury, they
say. has gone into the foreign
financial situation and the loans by
his Government to foreign govern
.hents in great detail In his annual
eport which was submitted to Con-
aress last December and In that they
point out the Secretary says that all
loans to foreign governments has
practically ceased.