The Washington times., 1922-05-08
loan
To BE OPPOSED
. BY DEMOCRATS
House Committee Members
Declare Lady BountifuI'
Role Is overplayed.
by Universal service.

ny Universal Service.
"We believe it decidedly to the
best interest of the United States
to notify all the nations Of the
world that we have ceased to be
a Lady Bountiful and that from
henceforth no foreign nation can
obtain 4 loan from the United
States Treasury"
Democrats Demand Action.
This 10 the ringing demand made
upon Congress and the Administra-
ton In minority report. signed by
the eight Democratic members OF
the House Ways and Means Commit.
tee, denouncins the Administration
resolution to authorize q loan Of
IS, 100000 to Liberia.
The report was presented by Con-
gressman Crisp OF Georgia. Others
joining in II were Congressman
Kitchin, North Carolina; Garnsr,
Texas; Collier, Mississippi; Oldfield.
Arkansas; Csrew. New York: Mar
tin, Louisiana, and Tague, Massa-
chusetts.
The Republican members of the
Ways and Means Committee
originally were opposed to the pro-
posed loan. A personal appeal by
Secretary OF State Hughes, how
ever, swerved q sufficient number
OF them to give a majority for
favorable report. Mr.. Hughes con.
tended that this Government IL
morally obligated to make the loan.
The minority report. expressing
"unalterable opposition" to the
passage Of the resolution, declares
the United States 10 neither legal.
iy or morally obligated to advance
$1,000, 900 TO the African republic.
The report continues:
Neither the President nor any
other official OF the Government,
when acting without authority of
law, can create either a moral or
legal obligation requiring the legis-
lattve branch OF the Government to
tax the citizens of the United
States to obtain money to loan to
foreign nation. II this loan Is
made. such precedent will be
established. and 10 tho estab-
lishment Of such an unsound pre-
cedent we will under no circum-
stances become a party"
Credit Once Withdrawn.
The minority report points out
that the credit to Liberia was au.
thorized by the Wilson Administra.
ton in September. 1918. but that Ii.
IBERIA never consented to the terms
laid down by the United States. and
the credit was withdrawn when the
new agreement was reached on Oc.
| tahAVr % 1901 RAnoIlln2 hAu
that President Hardinss proclama.
ton formally terminating the war
had previously terminated the au.
thority under the Liberty Loan Acts
to make loans to foreign nations, the
report says:
The distinguished Secretary of
State, recognizing this fact. that
neither the President nor the Secre-
tary of State nor any other govern
ment official was at that time au.
thorized to make a loan to Liberia.
has appealed to Congress for legis.
lation ratifying the action Of the
State Department in agreeing. on
October 2s, 1921, to make the loan.
I'VE are clearly OF the opinion
that neither tho last Administration
nor the present was authorized legal.
ly under the Liberty Loan Act or
any other act OF Congress to extend
any credit to Liberia
I'VE cannot give our consent to
any legislation that may be con.
strued as establishing a precedent
whereby either the President or the
State Department can enter into ne
| gotiations with q foreign country
with q view to making II a cash
loan from the public Treasury, that
| udll hfV1d Can nvs t,irA 70 IN
pass laws further burdening our al.
ready over-burdened taxpayers to
raise money to loan to a foreign gov.
ernment to pay it's existing national
Indebtedness or for the purpose of
rehabilitating or developing the
country.
Charity begins at home We be-
lieve IL our Government has any
surplus funds. II will best subserve
the interests Of it's own citizens by
expending such funds in rehabiii.
tation and development work IN our
own country. instead OF doing 1t in
foreign land.
| Halt Extravasance.
I'm view Of the statement which
Secretary Mellon made public on the
18th Of April to the effec. tha: there
would be a $500, ,000, 900 deficit in
the Treasury of the United States for
the fiscal Lear 1873, We think Il Is
time to all a halt on all extravsgant
expenditures and that the Govern.
msnt should practice the str,ctest
economy IN governmental activities.
THE loan agreement provides
that a commission of American citi-
zens, at high salaries, shall! 60 to
Liberia and act as fiscal agents. We
are opposed to our, Government
supervising the running of foreign
governments by commissions com.
posed Of American citizcns or army
and navy officers. Our SID .xpcri-
ence in regard to the Haitian re-
public Is case in point.
I'VE loaned Haiti several million
dollars some years ago, and for the
last several years we have had ma.
rines there collecting customs taxes
and running that republic. Many
conflicts between our marines and
the natives have resulted; much
bloodshed has resulted, and there
have been frequent Investigations of