Evening star., 1927-10-26
Loan Policy Of Government
Is Viewed From Many Angles

the practice of asking approval of
private loan propositions may have
largely passed. Ii continued, 1t might
| lead to abuses. But we have no doubt
| that had Carter Glass been at the head
of the Treasury or State Department
during the refunding negotiations he
would have considered it necessary to
advocate the very practice he is now
\criticiZing.'' The New York Sun Tin.
dependenO also states that "fortu.
nately the administration at Wash.
ingtOn seems to appreciate the fact
that the policy is a dangerous one and
| that the temptations to use ii are
diminishing
IF Uncle Sam should seriously set
up the contention that lie would back
up only those foreign investments OF
Americans which had had a prelimi.
nary cabinet okeh," in the opinion of
the Grand Rapids Press Independently,
''he would be opening an Immense
field of abuse and discrimination. not
20 mention fine selling opportunity
to the gullible. This issue the sales
man would be urging. has the United
States Marines behind it," The
Raleigh News and Observer Demo
cratic) suggests that lit has been
known for some time that dollar
diplomacy abroad was the policy OF
the State Department" but that 81.
was not known that the State De.
partment itself had illegally decided to
put the Government in business by
approving or disappearing of loans bt
private interests"
''There is little doubt that this arro-
gated veto power over private busi-
ness transactions has been held too
long by the Government" declares the
Louisville Courier-Journal Gndepend-
ent). which adds that lin connection
with the controversy with France it
was patent misuse and usurpation."
The Reno Evening Gazette Gndepend-
ent Republican, states that 'the
opinion that the financ of America
should be left with free hand in the
matter of placing their money is grow
inS. The Newark Evening News tin
dependenO sees "a fragrant example
of dollar diplomacy" the Brooklyn
Eagle independently interference with
private business" and resentment
abroad" and the Worcester Telegram
independently risk of endless mixing
of politics with private business
Still, the Lincoln State Journal fin
dependent Republican, argues that
to Europe will involve us sooner or
later in difficulties which the state
Department will be called upon to set
tie; that 1.-The objections of the Sena-
tor. therefore. appear to be more tech
nical than real" The San Francisco
Bulletin (Republican) contends: "If an
American banker lends money or an
American merchant extends credit to
private Individual or corporation of
foreign country. that is a purely
private business transaction. but pri-
Vate loans to foreign governments are
matters of national interest. since
they may become matters of national
concern. We do not want to
have the private bondholder exercis-
ing an influence upon our foreign
policy"
I'm its inception. the policy" in the
judgment of the Baltimore Evening
Sun independent Democratic), as
sumed that there are certain foreign
loans which affect our foreign policy
and other sorts which do not affect it.f
But this is fallacy. Every foreignt
loan creates an American interest
abroad, and every American interest
abroad affects our foreign policy. The
policy, therefore, was founded on
false assumption" The, st. Joseph
News Press independently concludes,
Domestic investments on the whole
are greatly to be preferred, and with
several large American enterprises In
the offing there should be ample out.
let for restless capital"