The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-06-30
BIG international Loans

The World war showed the people of the United States
hat foreign entanglements do not depend OH diplomacy
alone but may more so be the result Of unfortunate In
~,ernational financial relations with which the govern
nent has no connection whatever.
When the United States entered the World war this
country was entangled with Europe's vast blood feud by
about se.ooOYo 1000 900 of loans to the allies. What course this
country would have taken had that not been the case is
! matter for speculation. President Wilson was reelected
IN the issue OF having kept us out OF the war. However,
We had a big financial stake in 1t and we got In after
Wilson had made the grade of reelection. Those who
opposed entry of the United States have always contend
ID that our unfortunate loans-which the allies all are
rying hard to dodge now in spite of promises to pay
we're an e~ntangling factor in drawing us into the great
world conflict.
Anyhow, the experience of the country in the World
var showed the extreme peril to the peace of the ma
ion in being tangled up in foreign loans to European bel
l~igerents. It is almost impossible for the country to be
Neutral under such circumstances. AS this affects the
peaceful relations of the nation to others 1t is patent
hat the dealings of our international fnanciers should,
n some way, be under the control of the government
and that some sort of approval or veto should be exer-
;ised at Washington on what Wall Street presumes to do
n the matter Of international loans. For instance, to
Mexico.
Senator Carter Glass, of Virginia, does not think so. He
wants to know by what authority the state department
undertakes to pass on international loans, giving them its
approval or dlSapproval. The answer should be plain.
Glass, who was very close to the foreign loan steps Of this
country during the World war, as a result Of his senate
committee assignments, knows how unwise they al were
n the final analysis, and to what extent this country was
ragged into the conflict by them, what the sorry mess
1as been since peace. with the debtor nations doing their
worst to dodge payment ever since, while holding Ger
many to full indemnity accounting and spending their
own resources on increased ornaments. instead Of pay
ing their war debts to Uncle Sam.
Senator Glass Inquiry comes at a time when proposals
IRE under way to assume the issue of bonds to pay the
German indemnity. 1t is impossible to consider tho issue
'aised by the senator without taking the German bonds
INTO consideration. While not as well timed as it might
,e, the senator's inquiry is pat in other ways. It should
not he made with intent to limit the state department in
he exercise of an unofficial and informal discrimination
n the matter of lending money abroad in such a way as
20 open the way to political ENHANCEMENT afterward.
This form Of ENHANCEMENT has no place in American
policy, whether in peace in the world or in war among
or international relations. It would be salutary, it
seems, to have. the state department exercise a veto on
loans TO other countries which insist on being militaristic
and thus always a menace to the peace Of this country
Through the possibility Of becoming linked up with the
fcuds Of Europe. The World war showed how that could
DC brought about unwittingly.
1T shall not occur again." said President Harding as he
gazed down on the dock filled with collins at Hoboken
Ehen the government began bringing home its dead Of
The World war from France. With equal appropriate
ness, it might Be said Of potentially entangling loans to
stae countries which started the recent war and thAn drew