Newark leader. ([Newark, Ohio]) 1917-1946, 1921-09-23
Morgan Teaches Lesson
TO PRESIDENT FOR DELAY OF
FOREIGN WAR LOAN
INTEREST

Foreign governments now owe this
government. on money loaned to them
during the war ELEVEN BILLION
DOLLARS, principal and interest.
Our government is staggering un-
der war debt of it's own, aggre-
eating MORE THAN TWICE THE
AMOUNT of this foreign loan. Our
Treasury is forced to borrow money
to meet it's obligations.
In the face of this deplorable situa-
tion President Harding and his Secre-
tary of the Treasury, Mr.. Mellon, are
allowing our foreign debtors to pay at
THEIR OWN CONVENIENCE, if
they are to pay at all, the BILLIONS
OF PRINCIPAL they owe US, and are
NEGLECTING AND REFUSING
ALTOGETHER TO COLLECT A
DOLLAR OF THE HUNDREDS OF
MILLIONS OF LONG OVERDUE
INTEREST.
More than this, the President in
sists upon the enactment of a law
granting to his Secretary of the
Treasury BLANKET AUTHORITY
to make ANY SETTLEMENT with
these foreign governments he may
CHOOSE TO MAKE.
A majority of the Senate Finance
Committee has voted to report this
administration bill to the Senate for
passage. This is to lodge in the hands
of one manor at best two, a power
| so VAST AND FAR-REACHING IN
IT'S INFLUENCE UPON THE FL
NANCES OF OUR OWN COUNTRY
AND so INEVITABLY POTENTIAL
IN INTERNATIONAL POLITICS,
THAT 1T UTTERLY DESTROYS
ALL CONFIDENCE IN THE
STANDARDS OF THE STATES
MANSHIP THAT COULD PRO-
POSE 1T.
No President, even in time of war,
was ever invested with tithe of the
power, with which this legislation
would clothe Mr.. Mellon, his Secre-
tary of the Treasury.
In proof of this, note the limita-
tions which Congress imposed upon
the Executive when these foreign
loans were authorized following our
entry into the war. 1t provided that
the Secretary of Treasury should, in
advancing money to the Allied govern
ments accept only such obligations of
the Allies as should bear "THE SAME
RATE OF INTEREST and contain in
their essentials the SAME TERMS
and CONDITIONS as those of the
United States issued" to raise the
money to supply the foreign govern
ments. 1t was further provided that
"if any of the bonds of the United
States issued and used for the pur-
chase of such foreign obligations
shall thereafter be converted into
other bonds of the United States bear
ing a higher rate of interest" THE
RATE OF INTEREST UPON SUCH
FOREIGN OBLIGATIONS SHOULD
LIKEWISE BE INCREASED.
| Now in TIME OF PEACE the Pres
ident INSISTS upon giving to Mr.
Mellon, his Secretary of the Treasury
UNLIMITED POWER as to the dis
posal of the eleven billion of dollars
involved in these foreign loans, ano
FIX TERMS, RATES, and conditions
JUST AS HE PLEASES.
Would any sane man. be willing tt
shut his eyes, tie his hands, gag him
self, and turn over his most important
affairs to any agent, to do with as the
agent pleases?
The bank or other business institu
ton that would irrevocably assign t(
an employee, the ABSOLUTE AMI
SECRET DISPOSAL of it's CONNER
cial credits to the amount of THREE
TIMES IT'S ANNUAL INCOME
would forfeit all confidence in the in
tegritiy of it's management and i'm
mediately find itself in the hands O.
a receiver.
The eleven billion dollars tied up il
these loans to foreign government
is THE PEOPLES MONEY.
If the terms and conditions control
ling the payment of principal and in
terest of these foreign obligations ar
to be altered or modified in any re
spect the authority for such action
under the Constitution, MUST CONF
FROM CONGRESS.
The founders of our Government il
their wisdom determined that this Re