New-York tribune., 1922-03-04
L. S. Seeks Data
On Alien Bonds
Sold by Banks
State Department Makes q
Request for Information
Before Investment Firms
Conclude Negotiations
Big ISSUES Bring " arning
Gov ernment, After lnyes,i-
CATION, viii Determine
if Loan Is Objectionable

Fror, 7tc Tribures Washington Bur~1u
WASHINGTON, March 3.-Americar
banking and investment interests uere
warned today by the Administration
that the government had 'ital inter
CT in the hotation Of foreign losrs in
this country, and .hat before arr noco-
tia:icn1 are consDmmatcd. fu'l informa-
ton should be supplied 10 the Stat De
partment. The dumping Of huge lssues
o fforeign bonds in the Ame ricar mar
ket is believed 10 have prompted the
warning. ohich VAS Voiced in an oAicia al
statement by the State Department and
supplemented b. the White House
}e7-..
At Z conference last GUNNER between
President Harding and members Of his
Cabinet With . pun'ber Of Investment
bankers, the intereat Of the govern
menf in The ppoiic notation Of foreign
bonds "as informally discussed. a.
that TIME She bankers we're Informed 4
that the :overnncrt desired 10 CO op
crate With them in the matte Of Tor
elgn loana. subsequently. the Pres
ldent rsa Informed b he banker ths4
.heY we're in harmon Nth The govern
men IS alaneg and would act accord
ineiy.
AZ the hi.e House to- de- il nss
learned that there IS ? constant turn
ing 70 the United Star f,r 'oa7- ind
there L an incress'ng OF, 5atlon on the
part Of the government to asce.ta,n
tho stability of each issue. As rule
the larger banker have been irforn,
II the state Department Of the char
sc'er OF the loans contemplated. but
there have becn some Who haze not
Official approval Desired
rho foLat ton of foreign bond isgues
IN the American market" the STATE De
partneNt's warning aid. "is assuring
al increasing importance and on ac-
count Of the bearing Of such opera
irons upon the proper conduct Of
AFFAIRS. 1T is hoped tnat American con.
Germs that contemplate making foreign
loans Will inform the Department Of
state in due time Of the essential facts
and OF subsequent Developments Of i'm.
portsncc. Ecs ponsiblo American bank
cr5 Nli' h. competent 70 determine
T9at lnformatior they should furnish
and when 1t ahou'd 5e supplied.
Nhierlcar concerns that wish TO
s5ecrtain the attitude Of tie depart
mcNt regarding any projected loan
ihouid request th7 Secretary Of State
III writing For sn cAprc ssiol Of the de
partncnta view. The department vill
men give the mater cor, ,ideration.
and. III the ight Of Tho information in
Its possession. endeavor to saw whether
OBJ lecton tn the loan in question does
or does not cAist. but it should be care
fullE noted that the absence of :
statenent from the department. even
though tha depsrtment mar have been
fully inlor'aed. does not indicate either
acoulesccnce or objection The depa~t
ment XII replr a. promptly q possible
to such uquirla-.
To Assume No Responsibility
"Iho Department Of State cannot. Of
course, require American bankers to
consult It. 1t will not pass upou the
merits Of foreign loans as business
propositions nor assume any respon0i-
bll'ty wfatevcr in connection With loan
transactions. Offer for foreign loans
should not. therefore. state or imply
that they arc contingent upon al eN-
presslon from the Department Of State
regarding them nor should any pros
pectns or contract refer TO the att itlde
of tins gorcrnmcnt The dcpa IT nent
believes that, in 1icn. Of the possible
natioNai interests invoked. Il should
have tuc opportunity OF saying 10 tho
under" ~ite"s concerned. should Il az
pea rI iaanlc 10 do %, Chat there i
or = 10 objection 10 any partiguiar