The Washington herald., 1921-06-24
CHICAGO BANKER
RAPS WALLSTREET
AT HARDING DINNER
Reynolds Opposes Ex-
tending Credits of Debt
Ridden Countries.
MELLON HEARS TALK
Declares Improvement in Eu-
rope Is Not Worth
Buying.
MELLON HEARS TALK

George NJ Reynolds OF
chairman Of the board OF the Con
tfnental and Commercial Natlonai
p.rk touched off a verbal bomb
shell at the dinner given by Presi-
dant Harding to Western bankers
AZ the white House last night.
Nincing no words, he, attacked as
falIacious, chimerical and destruc--
tive of American prosperity many
Of the schemes of domestic anu
foreign financing being urged upon
the President by Wall street inter-
ests. Reynolds pronounced uh-
sound and injurious to American
welfare projects for stimulation OF
an unnatural volume Of foreign
trade.
Pie, to Husband Resources-
A plea to husband our resources
for our own needs primarily was
voiced by Reynolds in the course OF
an onslaught upon the proposals
for extending additional credits to
the debt-ridden countries OF Eu-
rope, which, he said, would not re-
/. vive trade, but only increase for
eign debt to the United States that
can be discharged eventually only
in goods.
Improvement in Europe is not
worth buying at the price of Amer
ica's impoverishment," said Reyn-
olds, when the discussion was at
its height
Nor did the Chicago banker hesi-
tate to express, in the presence of
the President and Secretary of the
Treasury Mellon. his disapproval of
the administration plan to sell to
the American public the bonds of
the funded 10000, 100000 allied debt
to the United States. He opined
that the bonds would find no ex-
tended market unless the United
states were to guarantee them,
which would be only adding a fur
ther complication to the existing
situation.
Fayors CancelIing Debt.
There is sound logic" Reynolds
told the President and his guests,
"in the proposal to cancel Europe's
debt to the United States govern
me1t. 1t may be diplomatically un-
wise, but it would be economically
sound and certainly not altruistic /"
The views OF Reynolds, clashins
not only with the notions of Cabi-
net members, but the proposals of
the Eastern bankers, were echoed
by many Of the other financiers
- from the Middle West. In fact.
there is good ground for stating
that Reynolds uttered a declaration
OF independence of Chicago banks
from the domination of the New
York banking interests which are
heavily interested in foreign trade
and foreign financing.
Guests at Dinner.
Those dining at the White House
were President Harding, the Secre-
tary of the Treasury: the Secretary
of Commerce; John Sherwin, chair
man Union Trust Company, Cleve-
land: F. H. Goff. president Union
Trust Comapny, Cleveland; W. s.
Rowe, president First National
Bank, Cincinnati; George NJ Rey-
nolds, chairman Continental and
Commercial Bank. Chicago; Frank
o. Wetmore, president First Ma
tionaI Bank. Chicago: f. d. Hubert,
president Merchants Loan and Trust
Company. Chicago; John j. Mitch
ell. chairman Illinois Trust and Saw
ings Bank. Chicago: Richard s.
Halves, vice president First Nation
al Bank, st. Louis: ]. G. Londs-
dale, president, National Bank OF
Commerce, st. Louis: f. F. Swinney,
president Omaha National Bank,
Omaha: George II. Prince, chairman
Merchants National Bank, st. Paul:
John S. Drum, president Mercantile
Trust Company, San Francisco;
John T. Scott. president First Ma
tional Bank, Houston. Texas: Oliver
C. Fuller. president First wiscon-
sin National Bank. Milwaukee; Fes-
tus j. Wade. president Mercantile
Trust Company. - Louis; w. w.
Head. president Omaha Nationa,
Bank. Omaha: John ". Barton, Mer
ropolitan National Bank, Mfnneap-
oils: Charles G. Dawes. chairman
Central Trust Company, Chicago;
William T. Abbott. Central Trust
Company, Chicago; John r. Mitchell
Federal Reserve Board. and Milton
r. Allies. Riggs National Bank,
Washington.