Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-09-06

unneutral act against the Allies. It
ought to be noted here that Great
Britain during those days was stopping
American shipments to Germany.
This in itself was an aggression
against US, a challenge to our rights
upon the high seas, an insult to our
flag which our ships carried. Why
did we tolerate this? We shall soon
see.
Loans TO Allies Barred.
This great trade In America for
munitions Of war naturally called for
large money supplies. While our State
Department saw no injury to our
neutrality by American sales of sup
plies to the Allies, it did very ofhcially
put its foot down against loans Of
money to them. But while the Gov
eminent was opposed to the loans our
bankers we're not. Mr.. Lamont of the
firm has written that j. p. Morgan. &
Co. was wholeheartedly behind the
Allies from the start. The firm even
sent one of its partners to England to
place his firms services at the disposal
of the Allied cause. Early in 1915
Morgan. as agent for the Allies. signed
his first contract with the Du Pont
Co., and from that time on over 70
per cent of the business done with the
Allies by Du Points was negotiated
through the Morgan firm. And the
Allies needed Morgan. Without the
help Of some such American firm how
were the Allies to finance their Ameri-
can sales? European banks didn't
have the required gold to do the job.
Our State Department forbade loans
to the nations at war. So, the Nor
gans devised a program of credits"
to meet the situation, and to this the
State Department did not object. Per-
haps we shall some day know by what
line of reasoning the department dis
tinguished between loans and credits
In any event, there soon came a time
when the bankers themselves ceased
to distinguish between them, and the
State Department closed its eyes and
forgot its objections to loans.
Profits SCARED $4,000, 0oO, 900.
Business was on in a big way.
Bankers profits were tremendous;
business was booming. Through 1914
to 1916 the net profits of American
corporations increased two billion dol
lars. BY 1917 total outstanding loans
and credits to the Allies had reached
over two billion dollars. Morgans
then had demand loans and over
drafts due from Britain Of approx
;mately $500, 1000, 900. Obviously these
debts could not be met at the time.
Indeed, the Allies needed more loans,
more credits. In the early part of
1917 it became clear that the bankers
could not themselves carry the burden
of this financing. They sensed that
the credit of the great American Ma
ton must be brought into play If their
own selfish necks were to be saved.
What followed is history. After we
got into the war and by the wars end
our Government had lent seven bill
lion dollars to the Allies. Most OF
this is yet unpaid, but the private
loans owing Morgan and other bank
ers were Northumberland with the
money our own Government, through
the sale of Liberty Bonds, poured into
the cause Of making the world safe
for Democracy.
Now by what steps did our Govern
ment move so to the assistance OF
these bankers ,swho were enjoying
profit from Europe's blood? 1t will
be enlightening to follow certain cor
respondence, especially a letter by
Secretary Lansing to President Wilson