New-York tribune., 1921-02-22

mained an ava liable authorization for
tae establ shmeNt of credits IN favor
OF foreign governments, amounting 20
sl,S2S, ,o2S,3Si TO what extent taese
governments Will require further cred
its before the Termination of the war
depends upon factors that cannot noSv
be determined. 1t is important that
our foreign loans be discontinued as
soon as may be, having due regard TO
the essential needs of the foreign
governments; in the mean time they
should be held down to L minimum
Nevertheless, until certain OF the
Allied countries can resume thSir
normal activit es, the I'm ted States
should be prepared to sell on credit,
even after the declaration OF peace,
foodstuifs, raw materials, and manu-
factuTed products of which they may
he in need / shall recommend the
enactment Of legislation extending the
authority 20 establish credits in favor
OF foreign governments for 81 reason
able period and W ia reasonable
limits to meet needs growing out OF
the war"
Senator Reed said that without
criticizing Mr.. McAdoo he was sur
prised when recently he saw him
quoted as not favoring further loans.
Loan Policy Defended
"T am informed that the credits es-
tablished an6 advances made grow out
of the policies then inaugurated," said
Secretary Houston, referring to the
administration of Mr.. McAdoo IS head
of the Treasury Department.
81 am inclined TO think that Mr., Nc
Adoo was iabocing under the apprehen-
sion that we are making new loans and
new credits which we are not said
Secretary Houston.
The Secretary testified that in The
time of Mr.. McAdoo, as already indi-
Gated. TIE credits established exceeded
$4,000 100000 In the admin tration Of
Garter Glass, as Secretary of the
Treasury, they were something less
than $2o0o,000, 600.
Secretary Houston testified that since
he has been head OF the Treasury on Y
two small credits had been established.
That was in response TO arrange
ment that had been made" said the
Secretary.
defending the general loan policy,
the Secre eary said one OF the things
when was conspicuously III mind on
the PAL. Of the Treasury and govern
ment during the war was to make GER
tain the support OF peoples and coun-
tries not in sympathy with Germany or
Austria, He ciEed such instances as
the Czechs and the Poles. He re-
minded lha committee that the Root
comm sin advocated advances be
made TO Russia before the armisrice.
Mpaey Allow ed Liberia
with respect to the S. coo GOO credit
allowed Liberia, it was developed that
tie Secretaries OF the W2I AND Navy
departments did not approve it on the
ground Liberia would make but q neg
ligib coNtri sutton toward winning
wer Nevertheless the Pres. dent
approved it and 81 600 has been ad
vlnced Senator Reed said the Ebe-
rian lean WAS desirod D. American and
British hnanciers to reeoup them on
cd ns m1.e to Liberia.
Asss staut Secretary Kelley, who fol-
lcwed Secretary Houston on the stand,
tock . first the loans to France. lie
rad brought only a small part of the
correspondence which Senator Reed
wa. ted and the Senator and Mr.. Kelley
clashed Sen Reel sharply critl-
c.zed the witness for taking so much
tina and talking so much but revealing
little.
-. Kelleys testimony showed there
Is so coo 000 rem aiming to the credit
ID France. France seeks So 900 GOO
Of this 70 rcim5urse the War Depart
n ent fer supp les furnished b the de-
rartment to the French.