The New York herald., 1921-05-27
HARDING DISCUSSES
OANPOuClES With
BANKERS AT DINNER
First Of White House Con-
ferences With Financiers
and Business Leaders.
SOUND BASIS SOUGHT
Mellon Announces Funding
of Ten Billions Foreign
Loans Within Year.
WORKING FOR NORMALCY
Schwab Visits President and
Urges Relief to Reinspire
American Shipping.
Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau,
N. MAJ [

Special Despatch to The NEW YORK HERALD
New York Herald Bureau,
Washington. ID. G.. May 20.
President Harding last night called
In some OF the leading f1nanciers OF
the country to hear them and question
them on the industrial outlook, par
ticularly as to the means and ad-
visibility of extending further loans to
foreign Governments.
The President had as his guests at
the White House for dinner and dis
Hoover. ]. Pierpont Morgan of ]. p.
Morgan & Co, Paul NJ. Warburg Of
Kuhn, Loeb & Co.. James A. Alexander
of the National Bank of Commerce.
Charles A. Sabin of the Guaranty
Trust Company, Governor Benjamin
Strong of the New York Federal Re-
serve Bank, c. f. Mitchell of the Ma
tional City Bank William Kent of
the Bankers Trust Company all of
New York, and II. C. McEldowney of
the Union Trust Company. Pittsburgh.
While consideration was being given
to the matter of loans from private cap
ital to foreign nations President Har-
ding made 1t known that his policy
would be to restrict such loans unless
the proceeds are to be used to aid Ameri-
can production and industry.
Most of the fnanciers held that such
loans presented the most practicable
means TO place foreign finances on d
.,f- aiI
Some, however, expressed concern over
the possibility OF the credits being used
to buy the products of other countries
Conference Is Harm monious.
The administrative policy in this re-
gard and the fundamental reasons for
its conception were outlined by the
President. The bankers we're not, 1t
seems. in entire accord with hard and
fast policy of this kind. They argued
that the best way to aid agricultural
and other producers In this country and
industry in general was to help the
financial situation abroad. Tho confer
ence was entirely harmonious. and the
President and his guests left the table
In accord upon questions of general pol
icy and with assurances OF mutual sup
port and cooperation II bringing the
United States back to normalcy In
financial and economic way.
Official announcement of the confer
ence to-day was n complete surprise
The dinner had been quietly arranged
and was not scheduled in the usual way.
Half 4 score of the country's leading
financiers came and went without pub
lie notice. Other conferences OF sim
liar nature are to be hold with bankers
and business men from other sections of
the country
. wouId Fund Allied Loans.
Many questions were touched upon in
cidental to the primary discussion In
vited, 1t is understood. Among them was
tho Administration proposal 10 so fund
the allied Indebtedness to America that
the permanent securities accepted might
In the future. when conditions permitted
such course. be distributed 10 tho
American people. II ls the conviction
of the President and his advisers as ex-
pressed In New York that private holding
Is much better than public holding OF
these securities
Secretary Mellon made II plain again
to-day that this latter proposal is one
that looks to tho future, however. and
that no plan OF spreading the securi-
ties has or can be made at this time.
The allied loans, the Secretary said.
would be funded within year. Rapid
progress on the British loan Is expected.
Preliminary negotiations, the diplomatic
phases. have been largely cleared UP
o a result Of conferences between Sir
Auckland Geddes and State and Treas
ury Department officials.
The funding programme with Great
Britain will furnish O basis for agree
ments with the other allied Powers. and
II is known that Secretary Mellon con-
templates taking them up one by one
as speedily as possible. The loans, with
interest due. aggregate approximately
10000. 10000. Maturitles will be ar
ranged as nearly as possible to coincide
with maturity OF our own Liberty bonds
and small denominations will be asked.
This will make Il possible TO distribute
the foreign holdings to the American
people when the financial markets and
other conditions make such a course
feasible.
One OF the topics touched upon was
the general decline OF transportation.
both land and water. In It's effect upon
world business. Charles M. Schwab met
the President to-day. the conference fol-
lowing much along the line of that OF
last night Mr. Schwab holds the view
that restoration and pu.fding up of the
railroads our steamship lines and trans
portation I'm general Is the fundamental
factor In the building up OF trade and in