New-York tribune., 1921-12-29
Hoover Confers
WithBankersOn
Foreign Loans
Administration WishesTo Be
Consulted on Financing
Abroad to Insure Con.
sisicnt National Policy
More Cooperation Asked
Cabinet Officers Have, With
Few Exceptions, Passed OH
Operations Since March

Better correlation of American COM
ments abroad was discussed yesterday
at a luncheon at o downtown club given
by Herbert Hoover, Secretary Of Com
merce, to small group Of representa-
tives of the Investment Bankers AS
sociation Of America As a result of
the conference fuller measure Of
teamwork between investment bank
ing interests and the Administration is
in sight.
The purpose of the meeting was to
arrive at clearer understanding and
broader recognition of the policy re-
specting foreign financing in this mar
ket, which was inaugurated in the early
days of the Administration. This pol
icy, involving consultation of the State
Department and of the Department of
Commerce by bankers expecting to
| offer foreign loans here. was formu-
lated at conferences participated in by
President Harding, various Cabinet Off
GERS and financial and industrial lead
erS.
Informal Teamwork
There never has been hard and
fast rule governing Snis situation, the
Administration for obvious reasons
preferring to obtain the voluntary CO.
operation of bankers. The policy,
based on an informal suggestion, has
been generally adhered to, but on two
or three occasions houses floating for
eign loans have not regarded the prece-
dent thus established.
The proceedings at yesterdays s
luncheon were not public, and, aside
from the fact that this policy was dis
cussed, just what transpired was not
disclosed. Secretary Hoover is under
stood, however, to have been entirely
satisfied with the assurances received
from the bankers.
One result of the meeting is expected
to be that members OF the Investment
Bankers Association will be advised of
the Importance which the Administra-
tion attaches to the policy and that it
will be more closely observed here
after.
Little objection to the procedure has
been raised by bankers since its inaug-
uration last spring. On the contrary,
it has generally been appreciated that
acquiescencc in it would probably re-
suit in that degree of cooperation be-
tween the government and representa-
tives of capital invested abroad which
has been regarded as an important
basis of British banking prestige
abroad and the lack Of which has been
lamented here.
The arrangement as it exists to-day
is purely informal A banking house de-
string to float foreign loan here com
municates to the departments Of State
and Commerce details of the proposed
transaction. If these do not conflict
with the diplomatic and commercial
aims of the Administration the loan is
forthwith approved. The outstanding
example of piece OF foreign financing
that may have been deferred in defer
ence to the Administrations wishes is
the loan to Cuba. This does not fall
strictly within the scope of the new
policy, however, as under the Platt
amendment the borrower was pre-
vented from floating a loan here with
out the approval of the United States.
Moreover, the conditions antecedent to
Cuban loan required by bankers have
not been met and there is little likeli-
hood that the business could have been
arranged had the Administration pur-
sued a poicy of hands off.
Would Help Trade
The principal standards which the
Administration imposes upon foreign
loans are understood to be that thew
should not adversely influence diplo-
matte questions and that so far as pos
sible they should benefit American ex-
port trade. Direct expenditure Of the
proceeds in this country by the borrow
ing nation is held to be desirable but
has not been a rigid requirement.