The labor journal. [volume] (Everett, Wash.) 1909-1976, 1922-11-10
BY ROBERT NJ. LA TOILETTE,
In La Follette's Magazine.

J. Pierpont Morgan, speaking to
the American Bankers, through his
partner, Mr.. Lamont, recently made
a knowing appeal for the cancel
lation of all the debts which the
allies owe to this government.
And now another "great banker"
is out in a statement in which he
flatly declares that we "must can
eel Great Britains debt"
What is the amount of this debt?
How much are we called upon by
our beloved friends the bankers to
give to our European debtors?
Principal and interest the allies
owe us the tidy sum of TWELVE
BILLION DOLLARS. Great Brit
aims share of this indebtedness is
in round numbers FIVE BILLIONS.
Immediately after our entry in
to the war, this government sold
its interest bearing bonds in order
to raise the money loaned to the
allies. Those bonds have passed
into the hands of our big bankers.
Day by day, the people are being
taxed to pay the interest on the
bonds and in the end must pay the
entire principal sum.
The peoples debt to these banker
bondholders will not be cancelled.
1t will be paid to the last dollar
paid in toll and sweat
Now what is back of this proposal
by Morgan and his associates to
cancel the debt which the allies owe
the peoples government?
Can it be that their tender re-
gard for our dear allies is a cover
for some selfish purpose? Tut, tut,
perish the thought!
And yet, every school boy knows
that Morgan and his friends were
financing the allies from the very
beginning of the European conflict
Their loans to those governments,
and to foreign municipalities whose
financial stability depends upon the
integrity of those governments, even
before we were swept into the war
amounted to billions of dollars. In
fact, so heavily We're they loaded
up with foreign investments by the
close of 1916, and so desperate was
the outlook for the allies, that oul
masters of finance who had backed
the allies to win, were well nigh
in state of real panic. Added tC
this, eminent authorities in gov
ernment finance. writing in leading
magazines freely predicted the vi
innate bankruptcy of the belliger
ent nations. as the inevitable result
of the frightful waste of the Euro
pean war.
The specter of REPUTATION
of allied debts spread terror through
the Wall Street banking groups tha
were deeply involved with the al
lied governments. There were hur
ried conferences in high finacia
circles. The wires were kept no
between New York and Washing
ton. In one of these banker con
ferences. a prominent government
official was reported as confident
ly asserting that if the United
States could be put into the wa
at once, it would save the allies, ent
all talk of reputation and max
these bankers foreign loans secure
At that time, the only loans to tn
allied governments were the privat
loans made by or through Morgal
and other American bankers.
These patriotic bankers mad
their program, and their press an
their organizations carried forwar
the nationwide propaganda to fore
this government into the Europea
war. 1t was executed with fur
that swept the country with IRE
sistible power.
We were thrust into the war t
"save civilization" and the foreig
loans Of our money oligarchy. Gu
entry into the war made these bank
ers so secure on their existing foI
eign investments. that they subsC
uueutlv increased by large amount
their loans abroad.
These foreign loans made by ou
American bankers. hungry for hig
interest rates, have been stated VI