The Washington times., 1922-10-13
HAVE
SHUT DOWN on
FOREIGN loans

Always, Consult State Depart
mont When Aliens Ask for
Cash, They Say.
BY JOHN C. KLEIN.
Cosmepolitan News Service.
NEW YORK. Oct. 13.-American
bankers are making no loans to for
eign governments or to European in.
dividuals or concerns without the ap-
proval Of the United States Govern.
ment where the least suspicion exists
that such loans might be used either
directly or indirectly for such pur.
poses as might add to the present I'M
settled economic or political condi-
tions in those countries, leading New
York bankers asserted today. Thcir
comments followed publication Of
Washington dispatches announcing
that the making Of such loans by
bankers Of this country would he
frowned upon by the Government
where It seemed the money might be
used for stirring up war.
One instance which New York
bankers believe the Government had
in mind was the reported loan Of
money by France to Turkish ma
tionais. .....- ..
Another incident which it 10 be-
lieved determined the Government at
Washington was the recent news
paper advertisements announcing
that the Rumanian government in
tends seeking to float q loan Of
so. ZOO. 900 in this country. -
Should Pay . Little.
Bankers here said It was the
opinion of the Washington Govern
ment that before France loaned large
sums to Turkey with which to carry
on war. II should have repaid at least
part Of the immense debt II owes
the United States, incurred during
the world war, and on which It has
repaid nothing up to this time.
In the case Of Rumania. which also
owes this Government $40 900 900
Of a war debt. II is felt should seek
to discharge some Of its obligations
before adding to It.
II cannot believe that tho Gov.
ernment wishes to be understood as
placing itself In the position Of
seeming to advise American
bankers how to manage their
affairs" said Frank H. sisson.
vice president Of the Guaranty
Trust Company. cor to tell them
to whom they shall make loans.
That has never been it's attitude.
Bankers in this country have long
been making loans to foreign gov
ernments for entirely legitimate and
non.warlike purposes, on approved
collateral. Such loans, Of course,
are entirely different from loans
made them directly by our Govern.
ment. Bankers have long been
acting entirely in accordance with
the suggestions made by Secretary
Of Commerce Hoover. when he
called q number Of them to Wash
ington and suggested that before
loans be made to foreign govern
ments they confer with the De-
Of ascertaining II II would approve
such loans.
Always Ask State Office.
Alvin w. Krech. president Of the
Equitable Trust Company. said:
Bankers in this country have
at no time gone over the head OF
the Government in making loans
to foreign countries We have al
ways advised the Department Of
State Of applications for loans COM
ing from countries overseas. and II
objection was found, have declined
to make the loans. That has been
the custom for q long time, and
there has never been any inclina-
ton to depart from It,"
Otto T. Barnard, chairman Of
the board of the New York Trust
Company said:
American bankers have never
gone contrary to the wishes OF the
Government In the making OF
loans to foreign governments. Why
should they? know Of no loans
having been made without the
approval Of the Department OF
State. Bankers in this country have
no desire to still further compli.
cate conditions in Europe by max
ing loans which might be used
for warlike purposes.
James B. Clews, resident partner
Of Henry Clews & Co., said:
mo American bankers would act
in opposition to the wishes Of the
Government in making foreign loans,
but apart from that, there 10 no
reason why we should loan money
to governments of other countries to
be used in making more war. doubt
II the Turks would have gone as far
as they have had 1t not been that
France supplied them with money
Notwithstanding the fact that FraLce
owes the United States a huge debt
Most Of the foreign nations owe
money to the United States. Before
borrowing more, whether II be from
the Government or from private in
dividuals, let them use the collateral
they have, with which they would
secure the proposed loans, to repay
what they already owe.