The Waterbury Democrat., 1935-05-01

A confidential report now be- fore the committee shows for the first time the sequence of events and overwhelming pressures which swept the Wilson administration from it's initial strict neutrality" position and its He Kept Us Out of War" campaign slogan of 1916 to a point where American statesmen faced a choice between war and a domestic panic accompanied by Eureopean financial chaos.
 Road to War Shown
 Quoting from scores of secret documents in state department files, which are considered too sen- sational for publication, the report traces step by step the inexorable Consequences which began to pile up when the first boatloads of mu- nitions and food-stuffs left these shores for ports of belligerent na- lions.
 There were two parallel ruts in this road. In brief:
 American industrial, commer-
 cial, and finnacial interests piled up a huge structure of pro. duction, export, and debt. They became inextricably bound by gold and steel to the war fortunes of the allies.
 The government, whether infiu- enced by pressure or the threat of a collapse of that structure in economic chaos, shifted it's neu- trality policies to the advantage of the allies and the disadvantage of Germany.
 By countenancing loans to the allies which it had at first called M'unneutral." 1t in time reached a Crisis where the Morgans and other private bankers could no longer sustain the structure, and direct Financial aid from this government was essential to have 1t.
 Sly arriving at a neutrality .A policy which permitted Amer leans to sell billions of dollars worth of munitions, food-stuffs, and other materials to Britain and sFrance-and to lend them the money to pay for it-and at the same time permitting England to violate our neutral rights to the extent of blocking our commerce with neutrals bordering on Ger .inany, we became in effect part silers to the starvation blockade" sDf Germany.
 Our protests to England grew sfeebler as our war profits mount ed. The report shows how the sGermans, as they grew hungrier. ,became increasingly enraged at -America.
 Eventually, in bitterness and sdegperation, they resumed subma- .rine warfare. And the emotional sreaction of t&e American people scoincided with the feverish back .stage jitters of our statesmen lover the economic crisis.
 
 Paid Appalling Price
 Securities to the extent of $?,- sa0O.0 .0OO, 900 as we'll asi American .prosperity would have been jeop- .ardized by a German victory, it is spointed out.
 (The war cost us 100000 killed. 190,0o0 wounded, and $22,625.000,- 1000 directly. The postwar cost to .iis has been estimated as high as s$200. 900, ,000.0 .000.)
 When the Morgan firm in Au- .gust, 1914, first asked the state .department its attitude as to loans to belligerents. Secretary Bryan at .once took the position that such .ioans would be likely to get us in- ito war eventually as financial in- terests here championed the cause of the debtor nations.
 Al. IA. T nv.fx&. vat a war loans would be inconsistent with the true spirit of neutrality" Gate Opened to Greed
 But our enormous munitions gales had to be financed and soon -theSe was an informal agreement Between Acting Secretary Lansing and Morgan that "commercial .credits' were another matter.
 The bankers were around again in a few months, seeking permis- sion to float big loans. A year after the wars outbreak, Lansing had ssucceeded Bryan and was agreeing with Secretary of the Treasury Me Adoo that conditions had changed.
 The war supplies interests had built up 1-2 billion dollar fla svorable balance of trade. With Edrawal of Allied gold to pay for 1t would have bankrupted England and France.
 Only big allied bond issues could save our national interests" in the face of an economic crisis. So the first big war loan, the $5OO,00o,0OO sAngio French issue, was fioated by sa Morgan-headed syndicate, while the state department, secretly em- *barrassed by Bryan's previous in- Ierpretations of the true spirit of ,1eutrality," said 1t had taken no new position.
 Preferred War to 'Panic"
 The financial situation grew .even more strained, however, az eprivate money-raising proved in- *adeqnate. Ambassador Page at London vas cabling frantic bleats 4il. the spring of 1917.
 German submarines were play Ing havoc. If we went to war. the &reatest help we could give Eng. <Iand and France would be a big 1&ovefnment loan. Perhaps our go- Hux to war was "the only way in Xhich our present pre-eminent <fade position can be maintained and panic averted." A world Financial crash threatened.
 Feared England Too Much
 Ambassador Gerard nt Berlin .I1xeed the government here to em. ztafeo the export of arms unlevs &XnRland permitted food to enter