Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1921-12-29
CONGRESS TAKES ACTION LOOK
ING TOWARD COLLECTING
IMMENSE WAR DEBTS

let us go outside again this even
ing"
Speaking of New Years Resolu-
tions," began Uncle Ted. reminds
me of resolution Congress and the
republican administration have TAX
en- in Washington. You have heard
me speak before of the big debt ow-
ed the United States by dozen
countries in Europe. 1t amounts
to something over ten billions of
dollars, and on practically all of it
not dollar of interest has been paid
for over two and a half years. II we
add the interest that is now due us,
the total would reach to eleven and
a quarter billions.
President Harding promised
while he was running for election
that he would do everything in his
power to secure the repayment to
our treasury of that huge amount.
In his address 20 Congress on De-
cember 9Th he laid stress on the mat
ter, and asked Congress to grant him
all necessary authority to make
agreements with Che debtor coun-
tries for the payment of interest and
the principal. A bin has been in
troduced, and will become law
very soon, that creates what is
known as the foreign debt refund
ing commission. The Secretary OF
the Treasury will be its chairman
and will direct its activities.
Il speak Of all this as New Year
resolution on the part of the govern
ment, and really 1t is just that, for
the New Year will mark the first
reflective efforts on the part of our
officials at Washington to bring that
money back home. For two years
after the close of the war the Wilson
administration did not think it worth
while to safeguard those loans, and
the pressing necessity of making i'm
mediate changes in the internal tax
laws did not give opportunity to the
Harding administration to take up
the matter in the special session of
Congress last summer. But now the
collection of those debts will be taxi
en- up in earnest and not put aside
until very definite arrangements
have been made with the debtor ma
lions for the payment of what they
owe"
Freddie says his father told
him." broke in Jack, that although
Congress told President Wilson 20
that were with us in the war against
Germany, he turned over hundreds
of millions of dollars to nations that
were not heard of during the war,
and even loaned about billion and
a half dollars after the war had come
to an end. Is that so, Uncle Ted?"
"Yes. that is all very true" re-
piled Uncle Ted. "All of those facts
came to light during the hearings on
the foreign loan held before the ju-
dietary committee of the Senate.
Not only that, but there were many
other things done by Secretary OF
+ the Treasury McAdoo and hts sue
cessor, Mr.. Glass, that were not au-
thorized by law and were contrary
TO the most simple business prac-
tees. Just let me tell you OF some
of the facts discovered by the COM
mittee. Referring to what you just
asked me, let me read this from a
memorandum prepared for the
committee.
Approximately $500, 100000
was loaned to foreign governments
after all hostilities had ceased. This
money was raised from the Ameri-
can people by Liberty Loan drives
and taxation and was authorized to
be used for the purpose of the pros
ecution OF the war and loaned to
governments then engaged in war
with enemies of the United States.
Treasury officials were aware OF the
fact that they had no authority to
make such loans after hostilities had
ceased
"Official letters are on file with
{,,I tnta fnn IN
that statement, and show that Mr..
MCAdoo and his subordinates in the
treasury deliberately violated the
law of Congress and used the peo-
ple's money in a way for which they
had no authority whatever.
Here are some other facts the
government found out: Millions OF
dollars worth of food purchased
with our money loaned to foreign
countries was sent into Germany
while we were technically at war
with her, and Mr.. Wilson and his
advisers gave their consent to II.
Supplies worth s4S,000,000 we're
sent into Austria while that country
was our enemy. Millions of dollars
OF the loans were turned over by
foreign governments for various re-
lief and reconstruction work, in d.
rect violation of the act Of Congress.
Much of the money was loaned to
enable debtor countries to use 1t In
the payment Of interest on sums
previously loaned. The expenses OF
the Russian and Liberian delega-
tions to the peace conference were
paid with money raised by Liberty
Loan drives. Czecho-Slovakia was
not nation until June, 1919, eight
months after the close Of the war,
hut huge loans were made to her,
nevertheless. Three separate gov
ernments in Russia were given mon
ey from our treasury, but they have
TALL disappeared now and there is very
little chance OF getting the money
back again. The treasury officials