The Washington times., 1921-11-08

and within reasonable limits for these
needs growing out OF the war;
The report continues:
I'm accordace with the statement
made in the 1918 report above re-
ferred to, Secretary McAdoo did ap-
pear before the House Committe On
Ways and Means on December ~,
1918, and asked for legislation to ex-
tend his authority to make foreign
loans. He stated in part:
1T seems 10 be the part OF prudence
and wisdom as well as enlightened
self-interest, to make the balance of
the existing appropriation for the pur-
chase Of obligations of foreign gov
ernments available for purposes grow
ing out of the war needs. CThere was
a balance OF 81. SOC, ,000, 900, the amount
later loaned)
~ only ask that the Treasury be
put in a position to take advances
up to the amount for purposes which
may be approved, with, of course the
approval Of the President, always.
"'And. therefore. l think we ought
to have the power necessary for that
act IL an exigency arises.
"'The purpose of this amendment
is to enlarge the power so that you
may lend for other purposes than
those necessitated by the war. II
we are given the authority in the
proposed amendment here to lend
money to the Allied governments for
reconstruction purposes, food, or any
other purposes contemplated by the
amendment to the extent such loans
may be made in the fiscal year 1920,
we might have to sell more bonds
or war savings stamps on short-time
paper.
"'I have answered we have no power
to consider such loans now-we have
no authority to make such loans.
| do not know that we have at all,
even If this authority is granted
The report of the Judiciary Commit
tee goes on:
shortly after the above testimony
was given in the House Ways and
Means Committe, on December 16,
1918, Secretary McAdoo resigned and
Secretary Carter Glass took his place.
p Glass Wanted Power.
Secretary Glass appeared before
the Committee on Ways and Means
of the House Of Representatives Febru.
ary 5, 1919. on a hearing on the fifth
Liberty Bond bill, known as the Vic.
tory Loan bill.
AT the outset OF his testimony
before this committee he presented to
the committee n tentative draft of a
bill which gave him the additional au.
thority referred to in the McAdoo tes.
timony, namely, the authority to con-
tinue the loans authorized for war
purposes during peace time for re-
construction and food relief"
For these reasons" the report
quotes Secretary Glass as having
testified, II urgently ask the authority
to broaden the purposes for which the
loans to foreign governments may be
made"
Albert Rathbone. then Assistant Sec.
retary of the Treasury, in charge OF
foreign loans, the report declares, tcs.
titled at the same time, as follows:
AT the present time our authority
TO advance is limited to the purpose OF
the national security and defense and
the prosecution of the war. The au.
thority we ask now is to make ad.
vances for the purpose Of promoting
commerce."
Authority Refused.
The report then points out:
"The House Ways and Means Com.
mittee did not agree with either Se,.
retary McAdoo or Secretary Gloss,
and refused to grant the authority re.
quested.
"The attitude of the House Ways
and Means Committee was shown
by the speech of Congressman Kit.
chin, chairman Of the committee, In
the House Of REPRESENTATIVES on Febru.
arv 25, 1919"
Mr.. Kitchin said:
Secretary McAdoo before he left
the Treasury Department, and SIC.
rotary Glass. asked the Ways AMI
Means Committee to authorize the
Secretary of the Treasury to establish
credits in the United States In behalf
OF foreign governments TO the amop,t
OF the nnexnended balance OF Tho