Evening star., 1933-10-21

Thanking you for the honor you did
In inviting me to become . member OF
this group, and wishing you the fullest
success of the organization, I am crate.
fully yours. (Signedl
"J. RUBEN CLARK, JR.
Many In Default.
1.-THE situation now existing in re-
gard to foreign securities Is one Of sub
Stantial concern to the American peo-
pie. American funds were put at the
disposal of more than 40 foreign gov
ernments and have assisted In their
economic development. Many Of these
loans are now wholly or partly In de-
fault The bonds are held by large
numbers Of Americans who have at
present no adequate means Of getting
in touch with each other and organiz-
ing in order to keep themselves in
formed Of events affecting their inter-
ests and Of arranging for the proper
handling of the debt situations in
which they are concerned. In some
instances American interests may be
suffering unfair discrimination COM
pared with the investors Of other coun-
tries.
"a task of adequate Organization OBJ
viously exists to be undertaken. In
zation of the American bondholders Is
sible fair and satisfactory arrange
ments with foreign governments un-
dergoing difficulties and to properly
protect American interests.
This is task primarily for private
initiative and interests. The traditional
policy of the American Government has
been that such loan and investment
transactions were primarily private ac-
tions, to be handled by the parties di-
rectly concerned. The Government real
ICES a duty, within the proper limits OF
International law and international am
lty, to defend American interests abroad.
However, 1t would not be wise for the
Government to undertake directly the
settlement of private debt situations.
Not Profit Idea.
"It was decided, therefore, to call to-
gether small group to take upon them
selves the patriotic duty Of bringing
into existence an adequate, effective and
disinterested organization to carry on
this work. The organization should ex-
ist not for profit. but for aiding the
American interests which it will rep
resent, and of aiding them at the low
est possible expense to the many thou
sands of bondholders.
Because of the fact that these in
terests are widely scattered, the fact
that there are so many different loan
issues to be considered, and SO many
different groups to be consulted. this
Is no easy task But 1t must be achieved
and the Government expects that 1t
will be achieved. The organization when
it comes into existence is to be entirely
independent of any special private in
terest: it is to have no connections OF
any kind with the investment banking
houses which originally issued the loans.
It will decide its own affairs tndepend-
emily Naturally, its decisions will ulti-
mately depend on the will Of those who
possess the securities. Too, another Of
its duties naturally will be to keep init
mate contact with all American inter-
ests cocerned and to unity, so far as
possible, all American groups that seek
to act in protection Of American in
terests The organization contemplated
in a sense will be a unifying center
for the activities of all proper Ameri-
can interests.
THE meeting was called in order to
get the task we'll launched. Admins
tration officials will follow the course
of development with interest. They
have no intention, however, OF seeking
governmental direction or control OF
the organization, nor will they assume
responsibility for its action. Toward
this organization. as toward all other
legitimate American interests. the Gov
ernment will seek to give such friendly
aid as may be proper under the cir
cumstances The group undertaking
the foundation of this organization
will announce, as soon as possible, its
plans. In the meeting today all phases
of the form of work of the contem-
plated organization were discussed"