The Washington herald., 1921-02-09
DRIVE OPENED
TOSHEDLIGHT
ONLOAN FACTS
Full Information Is De-
manded in House and
Senate Resolutions.
SIR GEORGE PAISH'S
VISIT is RECALLED
Secretary Houston De-
clares Public Hearing
Would Be Unwise.

Two elements in the United States
Sent went to the mat" yesterday
on the issue of American loans to
the allies.
Secretary Houston appeared pe-
fore the Senate Foreign relations
Committee to testify "confidentially'
on Europe's financial obligations to
the United States.
HoustOn's appearance was the sig
nal for the Inauguration of a drive
led by Senator eed, of Missouri. to
force publicity on the Treasury De-
partment's dealings with the al
lies. Supporting eed were Senators
Hoke Smith, of Georgia, and Walsh.
of Massachusetts. the latter the au-
thor of a resolution demanding fun
information on American European
loan negotiations.
Defend Treasury Department.
Senator Overman, Alabama. is
among the group attempting to
steer the loan hearings into execu.
tive session. The sentiment of this
group indicates an opposition to any
tendency which would seem to
threaten embarrassment among
Americas former allies. They also
feel, it is understood, that an effor'
is being made to unjustly criticize
the Treasury Departments handling
of the allied loans.
1T would be very unfortunate, ="
Secretary Houston said, "if we were
to produce publicly everything
which has passed between tho
Treasury Department and the allied
governments. 1t would not be wise
to go into everything in public
hearing
The executive session of the For
eign Relations Committee was a re-
suit of his attitude, although Reed
said yesterday he was determined to
bring the story Into the open"
Senator Smith, criticizing the
Treasury Departments negotiations
for converting the allied loans into
longtime obligations, declared that
"fooling with demand eertifcates 4
had created the inlpressfsn tfsat we
didn't expect payment on oru obli-
cations"
Calls for Correspondence.
Representative Fish. of New York.
introduced resolution in the
House directing the Secretary Of
the Treasury to furnish the House
with copies of all correspondence
that has passed between the United
states and foreign governments in
regard to loans since our entry into
the war in April, 1917.
The resolution also is intended
10 ascertain what "feelers" in this
direction have been extended and
from what sources they emanated.
Representative Fish recalled that
Sir George Paish visited this cour-
try some months ago with an elab-
crate plan for the cancellation of
all American loans to tAe allies
and the extension of all add;tfon,,
credits amounting to billions for
their rehabilitation.
1t has never been revealed bv tho
Treasury Department whether Sir
George ever submitted his plan to
the government, btu this point and
the nature of the negotiations that
he conducted would be definitely
determined by his resolution. Rem
resentative Fish said. The measure
was referred to the Ways and Means
Committee for action.
In response to the Walsh reso1u-
ton. Secretary of the Treasury
Houston was to have appeared be-
fore the Senate Foreign Relations
Committee yesterday with informa
tion as to the formal overtures that
have been made to this government
for the remission of the war debts
but he was unable to attend be-
cause of illness.
Reveals Russ Embassy Expepse.
The disclosure that it cost 5000.
900 in 1920 alone for the upkeep of
the old Russian embassy here was
made last night in an official state
mcnt issued by Assistant Secretary
of the Treasury Kelley, who has
charge of foreign loans. It has been
generally known that this govern
ment has been supporting the So
called Aussian Ambassador. Poris
Bakhmeteff, and a large staff in the
pretentions embassy quarters since
the overthrow in 1917 of the Keren-
sky government which he repre-
sented.
The purpose of the Assistant Sec
retary's statement was to correct
the reports of his recent testimony
before the Senate judiciary Com
mittee. He said he had been erron-
eously quoted in reference to the
credits made to the Russian govern
ment