The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-12-31
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ing settlement Of their public debts
to our public authorities.
On this point, 1t is stated, the
President draws clear distinction
between loans for productive pur.
poses and loans for non-productive
purposes.
In the latters case, the American
Government would be reluctant to
extend any sort of approval to
the loan. A loan which, for in
stance, was to be used. for mu-
nitions would not seem to the
American Government to be one TO
which It could give its sanction.
1t would not in any case, how
American citizen his right to
home or abroad.
To Leave Investor Alone.
The President, 1t is confidently
stated. does not wish to assume the
role of dictator of American in
vestments in either hemisphere or
any country.
Nor does he wish. it is again
confidently stated, to seem to
threaten any country with any
Presidential coercion regarding the
investment of American money in
that country.
The question is not one of CO.
ercion or of threat, but one only
of approval.
Loans from private sources in this
country to European countries for
non-productive purposes have not
mad and Will not have any approval
from the American Government.
Loans For Upbuilding.
Loans, however, for productive
upbuilding purposes have had and
will continue to have that approval
quite irrespective of present poll
teal negotiations regarding settle
ments OF public debts.
1t is believed in the White House,
In fact, that loans which will i'm
prove the productive capacity of
debtor countries are advantageous
to the Government of the United
States because by building up the
prosperity of those countries they
will better enable them ultimately
to discharge their obligations to the
United States Treasury.
U. s. FavOTs Loans.
The policy of the American Gov
eminent is not against loans to
European debtor countries. On the
contrary, 1t is in favor o. them If
they are loans of sort that in.
crease governmental or industrial
productivity.
This Is a point of particular I'm.
portance to France. The private
loans from this country to French
governmental bodies and to French
industrial corporations since the war
have amounted to at least half a
billion dollars.
Interest on these loans Is paid
promptly and punctiliously.
The American Government is not
thereby outraged.
1t hopes that these loans will help
ultimately to build France up to the
point at which 1t can readily afford
to repay It's bOrr owings from the
United States Treasury and from the
American Taxpayers during the war
and in the period immediately fol.
lowing the war.
Coolidge not Hostile to Loans.
The President therefore, it is
authoritatively believed, does not
wish to seem hostile to such loans.
Above all, he does not wish to
seem to threaten France or any
other country through any supposed
control Of his over private American
financial operations.
He thinks, it is firmly and reason
ably believed, that the public debts
OF all European countries 70 the
pub, .:.cnsury of this country will
ultimately be solidly settled through
the operation OF economic neces-
stiles and that meanwhile all loar-
whit,a build up European prosperity
toward capacity for that settle
ment are not only justifiable but
desirable.
Virtually every loan SO far ma le
from private American sources 10
any European country Is precisely
OF that character.
Our private bankers have in
truth been building up the Euro.
pean capacity to repay the debts