The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-02-06
J. S. FLUTES
CINCH HOLD
ON FAR EAST
louise Of Morgan Loans JapS
Huge Sum
By FREDERICK KUN
STAFF Correspondent Of The Federated Prsssl

StaH Correspondent Of The Federated Prsss)
NEW YORK. - The American
umpire is having another twinge of
growing pains. The Federated Press
learns on excellent Wall Street au-
thority that arrangements are vir-
tually completed for an American
banking syndicate loan to Japan, the
reported sum ranging from $50,000,-
900 to $70,000,00O. J. P. Morgan
& Co. will head the bankers con-
sortium which is to execute the deal
with the Japanese government.
The loan will be contaminated in
the form Of credits for reconstruc-
ton purposes to repair the damage
In the wake Of the catastrophe
earthquake. 1t will be stipulated
that a large proportion, if not the
total amount of the loan, must be
expended upon materials purchased
in the United States. It is un-
derstood that certain great Amer
lean industrial groups will partici-
pate in the loan on condition that
their industries are favored with fat
contracts.
Government Backs Pact
Negotiations for the loan have
been going on secreteiy for several
months. At the outset Of this year,
it was reported that a Japanese
hnancier had arrived in New York,
entrusted with an official mission
from the Toxic government. Inter
viewed, the Japanese banker denied
the official purpose attributed to his
voyage and blandly remarked that
his visit was simply that of tourist.
The disclosure that he was engag-
ing in conferences with members of
the Morgan firm soon put an end
to this canard.
This weeks visit Of Thomas W.
Lamont, chief of the Morgan con-
Germ, to Washington, where he con-
suited with Hughes and other cab
met members, is believed to have
sealed the Japanese bargain ana
secured the approval Of the Cool
idge administration for the trans
action.
The conclusion, towards which
these symptoms pointed, was con-
frmed few days ago, when the
japanese yen, which was tumbling
on the money market, suddenly re-
gained its stability, and has remain
ed sta+'' airy Since.
apps Forced to Yield.
lotment Of the loan to Nor
gan puts an end to the bitter rivalry
of Ave international money-lending
syndicates, which were competing
for the Japanese loan. The Japanese
government is known to have been
unwilling to accept the Morgan pro-
posal and to guarantee it, as long
as Morgan insisted upon concluding
the loan with cities damaged or de-
stroyed by earthquake. It is be-
lieved, however, that the Toxic gov
eminent yielded on this point, and
that the loan will assume the form
desired by Morgan.
It is premature to state the po-
ntical effects of the loan. Some
time ago, the Moscow daily, "Isves-
tia" anticipated this deal, and ex-
pressed the conviction that the price
Of an American loan would be al
japanese pledge to abstain from
recognizing the Soviets. It may be
held that the concurrence Of Hughes
subStantiates that theory.
Concessions In China?
II is both more actual and more
likely that the political and .econom-
&c prize which is to fall to the
American government and to Wall
Street, will be Japanese concessions
70 American private interests in
China. Details Of these aspects Of
the loan are, of course, being with
held from the American public.
Coming close upon the heels Of
the dispatch Of American naval mis-
sions to Central and South Amer
Tea, American intervention in the
Mexican civil struggle, U. s. naval
maneuvers in the Panama Canal,
the appointment of an American
controller Of Hungary's financial and
economic fate, and reported nego-
tiations for a Wall Street credit
to Germany, this latest emergence
Of American imperialism in the Far
East suggests the flying start OBJ
tanned by Americas empire-build-
ers during the brief days Of 1924.
Whittier this index points is amp
Iy illustrated in the history of all
great empires from the Roman to
the British, with their stories Of OPP
preston and wars, invariably cul-
minating in an era of misery and
disintegratiOn at home. Will Amer
lean Labor learn this lesson before
it is too late?