Evening star., 1932-01-25
GLASS IS QUOTED
IN REPLY BY HYDE
Secretary Refers to Records
to Show Postwar Loans
Without Legal Authority.

Secretary Hyde, whose charges that
President wilson's administration made
postwar loans to Europe without legal
authority were called malicious
fabrication" by Senator Glass of Vir-
ginia, today turned to Government
documents for substsntiation
Pointing to printed page and para
graph, the Republican cabinet member
quoted the statements of Senator
Glass, Secretary of the Treasury at the
end of the Wilson regime, and his
predecessor, William G. McAdoo in
seeking legislation extending the au-
thority to establish credits in favor of
foreign governments" Nearly $2,000,-
100000 was sent to the war-torn allies,
he charged, although Congress had de-
MED approval of permissive legislation.
He quoted McAdoo as saying: I'VE
have no power to consider such loans
now. We have no authority to make
such loans"
Secretary Hyde first made his accu-
sations in speeches in which he con-
fidently predicted the reelection of
President Hoover. Senator Glass re-
ing they were false in spirit and in
fact"
Truth Held Available.
'"There isn't a word of truth in it."
the Virginian said, "and the Secretary
OF Agriculture might easily have as
certained the facts had he been as
cautious to observe the truth as he
was swift to misrepresent the facts"
Hyde said the point he was stressing
Was that nearly all Of Americas deli
cate economic and political questions
have grown out of the war or have
been enhanced by 1t" and that Mr..
Hoover was not responsible for the
loans made after the war.
1T is perfectly evident" the Secre-
tary contended in his answer, that If
the provisions of the law had been fol-
lowed in making loans to foreign gov
ernments, we should have had not de-
mand notes, which had later to be
funded and scaled down, but market
able obligations of foreign governments
bearing, as the law required a rate of
interest not less than the Liberty loans
from which the money was derived and
containing substantially the same terms
and conditions.
Such loans would not have become
enmeshed in questions of reparations,
in which we had no share and which
were no part CT their consideration. We
made whole by reparstions, and if Mr..
McAdoo and Mr.. Glass had followed the
plain terms of the Liberty loan acts,
which were their sole source of author
ity, we should not now be engaged in
endless international complications and
debate"
Waving barge cigar for emphasis,
Hyde told newspaper men he was not
now raising other questions, such as
the European talk Of cancellation at the
time the postwar loans were made.
Liberty Loan Acts.
He said Glass perhaps had forgotten
that the Liberty loan acts limited the
loans to "the purpose of more ef-
fectually providing for the national Sc
curity and defense and prosecuting the
war"
Secretary McAdoo was quoted as say
ing before the House Ways and Means
Committee on December IL, 1918, In |
support of legislation he recommended, |
1.-THE purpose of this amendment is to |
enlarge the power so that you may lend |
for other purposes than those necessi- |
tated by the war"
is as head Of the Treasury. He also
favored the legislation, Hyde held, and
said before the same committee, II
urgently ask the authority to broaden
the purposes for which the loans to
foreign governments may be made"
If Glass thought he had authority"
Hyde asked, why did he come before
Congress and ask for more?"