The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1922-10-27
EVERY FOREIGN LOAN MADE BY
DEMOCRATIC ADMINISTRATION
WAS MADE ILLEGALLY.


cancellation of loans made by the
United States government to foreign
countries will probably result in a
thorough airing of all circumstances
connected with those loans.
The history of the negotiations is
bitter indictment of the Democratic
administration. The facts disclosed
in the documentary evidence present
ed convict the Democratic admins
tration of continuous wilful violation
of the law governing foreign loans.
They convict the Democratic admin
istration of making foreign loans
without any authority or right under
the law, and shows by their own Off
cial statements that at the time they
made these loans they knew they had
no authority for SO doing.
The correspondence convicts the
Democratic administration of squan-
dering hundreds of millions of the
money of the American people in
that it loaned this money to foreign
countries not for the purpose of win
ming the war, but for the purpose OF
fighting American trade abroad; for
the purpose of buying political intiu-
ence at the Paris conference; for the
purpose of sustaining fictitious gov
ernments and enabling individuals to
live in riotous extravaganza; for the
purpose of repaying the international
bankers money they had loaned to
foreign countries; and for other pur-
poses both Illegal and hurtful to Am
eriean interests.
In brief, the records show the
Democratic administration literally
threw away hundreds of millions OF
dollars of American money in know
ing violation of the federal statutes
and in utter disregard of the rights
and interests of the American gov
eminent and the rights and interests
of the American taxpayers
Taking advantage of the unusual.
powers vested in the executive offices
during the war; various high. officials
of the Democratic administration
fagrantly and knowingly violated the
laws in connection with the loans
made to foreign governments. In
fact, there was scarcely anything IN
connection with making these loans
that was done legally.
The whole question was thoroughly
investigated by the Republican Con-
gress, elected in 1918. The Senate
Committee on Judiciary made the
most searching inquiry into the facts.
the astounding revelations OF tnat
inquiry are set forth in an official
document. This document contains
correspondence and memoranda OF
cabinet officers and other high 9th
cials connected with the Democratic
administration which concluslvely
proves the irregularity and illegally
of the actions of the administration
in it's dealings with foreign govern
ments. Briefly, the situation was, as
What Law Provided
During the progress of the war Con
Dress passed four acts, known as Lib
erty Loan Acts The provision OF
these several acts are practlcally
identical. Each was entitled:
AN act to authorize an issue OF
bonds to meet expenditures Ior
the national security and de-
tense, and for the purpose OF as
sisting in the prosecution OF the
war; to extend credit to foreign
governments, and for other pur-
poses"
That section of the act which cover
ed the extension of credit to foreign
Governments provided that the United
States might extend credits to such
foreign governments as were then
engaged in war with the enemies OF
the United States" The method OF
extension of credit was specifically
fixed. 1t was provided that out OF
the proceeds of the Liberty Loans
raised from public subscriptions, the
limited States might furnish funds to
foreign governments by the purchase
of their government securities, bear
ING the same rate of interest and con-
tanning in their essentials the same
terms and conditions as the Liberty
Bonds, and maturing at date not
later than the Liberty Bonds. /
Under the procedure the United
States would have had as security for
each of it's foreign loans, bonds OF the
government to which the loan was
made, which bonds would have eX-
pired simultaneously with the LID
erty Bonds in this country, and the
interest rate of which would nave
been identical with the interest paid
on Liberty Bonds by this government;
Had these provisions been followed
there would have been no such prop i
lem existing today as that of refund
inc the foreign debt or of trying 70
secure from foreign nations some
agreement as to when and how they
will pay the interest and prlncipal
on these loans.
Every Foreign Loan Illegal.
The correspondence and the otticlal
memoranda, dragged reluctantly from
the officials of the Democratic ao-
ministration by the Senate com
mittee, proves that without any ex-
ception all loans made to foreign
governments by the Wilson regime
were made illegally In no case were
securities of foreign governments
purchased In no case was there any
Stipulation as to the time OF matur-
itv of the loans. In no case was TINS
government secured III any way other
than a written memoranda signed by |
individuals, some of whom represent