Evening star., 1926-01-06

Continued from First PageD
ling private banking institutions which
had loaned billions of dollars to these
foreign governments"
Il want to know whether the in
terna tional bankers can sell the
United States or use the United
States for their own profit want
to know how these private loans were
made and how much commission the
ba ankers were pa i'd and what discounts
they received for floating the loans
Then ] want TO find out II these gen
tlemen have not put forth this propa :
ganda. want TO know who it is who
insists that these foreign debts 10
private individuals shall be paid In
fun while the taxpayers of America
are forced to meet losses because the
foreign debts to the United States
Government are not paid
Cites Loan Statement.
Senator Reed read to the Senate ar
advertisement put out by Morgan 4
Co. and other bankers of a loan of
500 900 600 to Italy, which was to pay
9 per cent
In this advertisement, Senator Reed
said. Count Nolpi. head of the Italia n
commission which negotiated the debt
settlement here, had described Italy
as well able TO pay the proposed loa n
and had set forth conditions in glow
ing terms.
Senator Smoot of Utah. member
of the American debt commission. in
sisted that the per cent referred
to in the advertisement covered not
only the interest which would he paid
hut the cost of floating the loan.
Senator Edge Of New Jersey de-
clared that if Italy were not in a poor
fina ncial condition it would not have
to pay such high rate of interest
to obtain a loan.
SmOot Promises Data.
When the war debt settlements
come up for consideration in the Sen
ate, Senator Smooth promised he
would go fully into the condition OF
Italy as revealed to the America n
! deot commission. He said that toda v
! the Italian Ira is worth less than )
cents. and he predicted that unless
! the debts OF Italy and France to the
United States are settled. the Ira and
the frame would go far down the scale
as did the German mark.
The loans which Italy and France
are seeking, he said are to make il
possible to put gold back of their
currency and to prevent such a
catastrophe. The Senator from Utah
declared that Italy could not pay the
| debt to the United States and the
| full interest at per cent. or Az per
cent. without going ba nkrupt, heca use
she did not have the manpower nor
the industries nor the soil to meet
such payments.
Then Italy is bankrupt. if she
| cannot pey her debts" interjected
Senator Norris of Nebraska
Denies Italy Bankrupt.
This was denied by Senator Smoot
| who pointed out that Italy was able
to pay In part. With reference to
the statement Of Count Nolpi in the
| advertisement read by Senator Reed,
! Senator Smoot said that the Volpi
statement was probably true so far
| as IL went.
Senator Reed insisted that either
| Count Nolpf was seeking to mislead
the American people and the world in
| his statement of conditions in Italy
az published in the advertisement or
| else he was drawing a true picture of
| these conditions.
1T Is possible that he may have
deceived a man as astute as the Sen
ator from Utah." said Senator Reed.
Il doubt II the Senator from Utah
had before him all the facts contained
1 in this Nolpi advertisement at the
time of the debt settlement. l say
to you that IL you defeat this resolu
ton now you could cut off the means
Of obtaining the information which