The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-02-21
HOUSTON BLAMES
M'AD00 FOR LOANS
Secretary Of Treasury Says he
Followed Policies Laid Down
BY Predecessors.
CONTINUED from First Psss.)


had or were being made oy the Treas
ury Department"
''Mr McAdoo evidently imagined
new loans had been made" Houston
continued, (which, OF course, was not
true. Since I have assumed offi,e
only two loans have been made TO
foreign governments. and thsy were
for very small amounts"
Houston explained he had merely
carried on" policies insugurated by
his predecessors, and which, he had
meen Informed by Kelley and his as
sista ats, were apparently tustined or
authorized by the fact that the state
OF war had not been ended by Presi-
Dental proclamation
REED E1PRHssEs SURPRISE.
Il am very much surprised when 1
read Mr.. MeAdoo's statement In the
Newspaper recently" Senator Reed.
Democrat, of Missouri. . member OF
the committee. remarked
Houston declared the judgment OF
the Treasury Department Ia that the
armistice did not cause 4 situation
that prevented tho department from
establishing foreign credits or max
ing advances to foreign governments
Houston said he had to rely upon
the files OF the Treasury Department.
and upon correspondence entered into
between the department and foreign
governments before he took office
for most OF the Information he was
abls TO furnish the committe rsla.
tive TO the present and past status OF
foreign commitments
He produced 0 thick shesf OF let
ters he said concerned the financial
negotiations between tho Treasury
Department and Cseeho-slovakia.
He Indicated that this was the DE
ginning" OF the voluminous CORE
spondenee in the possession OF the
Treasury Department. and that, while
he himself hadn't the time" to go
personally into all OF the correspond
ence. Nicholas Kelley. assistant SOC
rotary. in charge of the foreign loan
division. who was present. could fur
nish the committee with all the In
formation that might be desired.
when these loans or credits and
advances were made for the purpose
of winning the war. did our Govern
ment attempt to supervise or keep
track OF themr' inquired Senator
Brandegee, Republican. of Connec-
ticut
TERMS OF ADVANCES.
Yes. FIRST by the allied purchasing
commission, and then by the War In
dustries Board" Houston replied.
They were supposed to be for the
purcha se of supplies by foreign gov
ernments in this country, although l
believe the purchase of supplies in
neutral countries was also author
ICED"
Every time they used the credit.
SO made to them was the approval of
gee pursued.
THAT is my recollection" Houston
replied.
Houston quoted from the McAdoo
reports to show the former Secretary
of the Treasury held the view while
he was In office that IL was per
fectly apparent" extensive credits
would have to be extended to Euro
pean governments with whom the
United States was associated in the
war "even after peace was established
and the reconstruction period had
begun"
He aiso referred to McAdoo's inten-
ton, expressed in the reports. OF 60
ing before Congress and seeking its
authorization of such additional cred
it's as McAdoo. Houston said, "evi-
IDENTIFY had in mind"
ADVOCATED NEW LOANS.
Houston pointed out that In the
reports McAdoo had advocated
making OF new loans and the estab-
lishment of new credits. Houston
denied that he himself had done so.
and reiterated "it was not true he
had made either new loans or ex-
tended new credits since he became
Secretary Of the Treasury a year ago,
except for two small loans he ad-
mitted having made.
The ID" used In the phrase pounds,
shilling. and pence is derived from the