The Washington times., 1921-02-14
HOUSTON TOBE
GR|[LED AGAIN
Secretary Summoned to Explain
Loan Status TO Senate Com
mittee Tomorrow.
CONTINUED from First Psge)

conferences.
To all proposals either at Paris or
since the peace conference that IN
er-governmentsl debts be Cancelled.
the United States had turend a dear
ear. IL WAS stated.
The nrm attitude Of this Govern
ment Throughout. the Paris negotis-
tions was. and stili Is. that the
United States did not enter the war
until 1917 and 10 therefore not re-
sponslble for what took place before
that time.
The only formal proposals ever
made by the allies thai the debts De
Cancelled was tho suggestion spoken
Of by Chancellor Chamberlain that
Great Britain wound be glad TO CO.
operate In any proposition looking
10 cancellation on the ground mat
she believed such action would i'm
prove the economic condition CT
Europe and would better interns-
tionai relations. Doubt was eS-
pressed today by officials as to
whether such a cancellation would
realty improve relations.
HARAssING CREDITS.
'I have noticed" said on official.
that the best way in business to make
an enemy Is TO do too much for some
one. | believe public opinion in Great
Britain would resent a gift from the
United states Of 100000 and that
relations would not be improved.
Those who propose the cancel
alton seem to think that the United
States merely had to wipe the slate
clean. While America does not owe
the allies anything. she does owe
$40, 900. 600. 900 to the American peo-
pie, and the American people must be
repaid.
"Even admitting for the sake of ar
gument that the allies were fghting
for the United States prior to 1917,
they were repaid for II by the spoils
awarded them at the peace confer
ence. The United States asked for
none OF these spoils and received
none: therefore, II would seem as
though the least the allies could do
would be to repay the amount lent
them with interest.
Three victorious powers, the
greatest in Europe, owe US 100000
OOO, 900. They propose to collect from
Germany $4,000. 100000. They GER
tainIy should be able to pay 10000
900 900 out OF that sum.
81 do not believe, however. that the
United States should be harrassing
creditor She should allow all the
time necessary especially as there Is
some doubt whether IL would be to
our interests to receive such large
sums with the resulting arrangement
of exchange. A credit Of 10000, ,000.-
900 would be very handy thing in
case the United states got into war
and needed to call upon the allies for
munitions. The amount would soon
be wiped out in that way
nnNNyrnQ
So convinced was William G. McAdoo
that he had not the smallest authority
to make further loans to European gov
ernments without special authorization
BY Congress when he was Secretary Of
the Treasury that he personally drew
up q provision in the Fifth Liberty
| loan act giving himself what he de-
scribed as broad powers in Taking
such loans.
Mr.. McAdoo appeared in person be-
fore the House Ways and Means
Committe at secret sessions and tried
to persuade it's members to report the
measure favorably. Later Carter
Glass, who succeeded Mr.. McAdoo'
also appeared before the committee
and advocated that the powers of the
Treasury Department be extended.
The proposed provision was unani.
mousIy rejected by the committee,
which felt that the United states had
already advanced more than enough
money to the bankrupt nations who
arc now endeavoring to repudiate
their debts.
BILLS NOW COMING IN.
The attitude Of the Treasury De
partment toward the action brought
by Mr.. Hearst to restrain II from
making further loans to European
governments became apparent today.
One high official snid that the bills
these loans nre intended to IiQuidate
nre now coming in, md that the
Treasury Will endenvor to make fur
ther advances to meet them.
When they appeared before the
secret meetings OF the House COM
mittee. Mr.. McAdoo and Mr.. Glass
vigorously defended the policy OF con-
tinuing loans on the ground that IL
was necessary to prevent the collapse
Of European finances and the destruc-
tion Of American foreign trade. Mr.
McAdoo testified:
1T seems to me that part OF pru-
dence and wisdom. as well as en-
lightened self-interest to make the
balance of the existing appropriations
for the purchase of foreign obiiga-
tions available for purposes growing
out Of war needs.
This includes the supplying Of
foodstuffs and materials to such ex-
tent as may( be necessary to tide