The New York herald., 1921-03-01
HOUSTON REFUSES
LOANS DATA UNTIL
COLBY GIVESWORD
Senate Committee Had Re-
Guested Correspondence
Since Armistice.
PASSES THE BUCK
Seeks to Put All Response
bility on His Successor,
Is judiciary View.
SAFEGUARDING PUBLIC
Secretary Says State Officials
Should First Pass On All
Foreign Letters.
SAFEGUARDING PUBLIC
syecsal Despatch to THE NEW Yorx HEnALp.
New York Herald Bureau,
Washington. ID. C., Feb. 20.

New York Herald Bureau,
Washington. ID. G.. Feb. ~.
Secretary of the Treasury Houston
declined to-day to furnish the Senate
Judiciary Committee with copies OF
correspondence as to loans made by
the United States to France, Italy,
Greece and Liberia since the armistice
until the Secretary of State has given
his permission. The correspondence
is at the State Department, and 1t was
made known there to-day that II the
making public of any Of the corre-
spondence is considered to be ''incoH-
patible with the public interest" It will
be withheld from the committee.
Mr. Houston's refusal was made
known to the committee when 1t met
to-day and expected to have the cor
respondence before 1t and to hear ex-
plantations of it's purport from either
Secretary Houston or Assistant Secre-
tary Kelly. He sent a letter to the
chairman of the committee together
with a copy of the letter to the Secre-
rary of State from Mr. Houston ex-
planning the situation.
The meeting became ore OF indigna-
ton rather than investigation. and SEN
ator Reed Immediately moved the chair
man be instructed to order Mr.. Houston
TO appear forthwith Senator Nelson
said he thought 1t was a matter of such
grave Importance that II should be con-
sdered by the full committee. and 1t
was agreed to meet again at o'clock
TO formulate decision
Case Of Buck Passing.
Senator Reed said he had been In
too many lawsuits not to know that the
action of the Secretary was intended
merely to delay the proceedings until
he had gone out of Office next Friday"
Apparently the Secretary intends to
pass the buck to the Secretary of State
remarked Senator Cumniins (ls). Re-
publican.
Replying 10 a suggestion that the COM
mittee ask the Secretary OF State for the
papers, Senator Shields (Tenn.) said
1T is not our duty to so hunting for
tho Secretary of State We should call
Mr.. Houston to account. We should find
out how much longer he intends to defy
the mandate of a committee In Congress.
Mr.. Houston should be made TO give
full explanation before he leaves ONCE"
Later Senator Reed insisted that he
was determined 70 have the whole mat
ter threshed out before March 4.
Secretary Houston'a Letter.
In his letter TO the Senate Judiciary
Committee Mr., Houston said:
II have had prepared files OF copies of
the correspondence which / understand
Senator Reed desires. and have asked
the Secretary OF State to examine them
and transmit to the committee as much
thereof as in mis- opinion Is no. incom-
patibie with the public interest TO make
public. venture to suggest that be
fore making public the Ale which waa
handed to the committee at the last hear
ing Of the copies of correspondence con-
cerning the loans 10 Czecho-Slovakia the
committee submit the same to the Secre-
tary OF state for his opinion as TO
whether there IS any portion that 1t
might be incompatible with the public In
terest to make public"
The .ettcr which the Secretary OF the
Treasury sent to Mr.. Colby says
80 far as the Treasury Is concerned
for its own sake, there is no reason
whatever why its files should not be
made public. The correspondence con-
cernins foreign loans however. involves
the affairs OF foreign governments and
has TO do with our foreign relations with
them In these circumstances il appears
proper that the Department of State
should have an opportunity to advise the
Judiciary Committee whether there Is
any part OF the cor, csponderce for which
Senator Reed has asked which II Is in
compatible with the public interest 20
make public.
II have therefore prepared copies OF
files OF correspondence as | understand
Senator Reed desires concerning the
loans OF France. Greece, Italy and LIZ
IBERIA and hand them to you herewith
with the request that you examine them
and transmit to the committee 80 much
of the correspondence therein contained
as in your opinion It IL not incompatible
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