Evening star., 1925-05-05
PRESIDENT HOPES
EUROPE WILL HEED
! HOUGHTON SPEECH
Indicates Belief That Eco
nomiC Conditions Abroad
Are Bettered.
LOANS FOR ARMAMENT
TO BE OISCOUNTENANCED
Thinks Policies of Countries Aided
BY Bankers Should Be Given
Close Scrutiny.
~ the Associated Press.

Ey the Associated Press.
While Ambassador Houghton spoke
on his own responsibility in his ad-
dress in London last night at the
Pilgrims dinner, President Coolidge
Is very hopeful that the Ambassad doris
Interpretation of the American at
titude toward Europe will be helpful
L. European statesmen and people.
The President feels that the ecc
nomic situation in Europe is improv-
ing. The return of England to a
gold basis and the probable early
similar action in Holland are con-
strued as favorable signs pointing to-
ward stabilization and recuperation
on the other side of the Atlantic.
Each Country Is Problem.
This favorable outlook is regarded
by the President as important in
considering loans by American bank
erS to European industries or govern
ments. He realizes, however, that
American financierS must consider
the situation in each country in re-
lation to that country's economic
policies and use discretion in deter
mining where their assistance is to be
made available in practical ways.
In the light of Ambassador Hough-
tons remarks in London, it is obvious
that the administration here does not
intend to approve loans that might be
used to bolster up military prepara-
tions by any European country.
Private American loans abroad, the
President believes, would be helpful in
some countries in restoring financial
stability and correcting exchange
questions, while in other countries
such loans would be of doubtful value
British See Significance.
British editorial reaction today made
It clear that the significance of the
new Amba ssadors utterance had not
been lost, and that it was acceraed as
virtually a direct statement of the
attitude of President Coolidge that
could be applied in forecasting the
Washington viewpoint on any politi-
cal development, such as the linden
burg election in Germany.
1t was noted that Mr.. Houghton
was careful to make his statement so
general and all-inclusive that it left
little room for resentment in any Eu.
ropean country unless that country
was prepared to admit openly that il
was following a militaristic policy and
not concerned with the peaceful eco
nomic rebuilding OF commercial rela-
tionships which the Ambassador said
could be the only foundation for
American aid in Europe's recupera-
ton. His statement is all the more
significant since the assistance from
this side of the Atlantic to which he
could have had reference is all in the
nature of private loans both to gov
ernmenrs and commercial and indus
trial concerns.
Government Holds Firm.
The Washington Government exer-
cises a compelling influence on Amer
lean financial circles in the making
of such loans, even if it has no actual
authority to supervise them. 1t has
been brought out officially recently
that no American financial group has
entered into a loan agreement in re-
cent years if the government indicat-
ed its belief that the transaction was
not in the public interest.
The Withholding of even unofficial
comment or explanation of Mr..
Houghton's S address here was taken as
indicating that Washington officials
were anxious that it should not be
construed into a reference to any spe-
cific recent political development
abroad. Apparently that was precise
ly what Mr.. Houghton was trying not
TO do. While all such immediate ques-
tions as the meaning of the German
election, the French reaction to that
election, the security discussion,
Balkan developments and many other
considerations have entered into for
mutation of the Washington policy. re-
affirmed in the Ambassador address,
there is nothing to indicate that >he
was thinking of any one particular
situation in voicins his warning.