Evening star., 1936-01-10
Morgan
Continued From First Page.)

have found no solution to the prob
lem.
Secretary McAdoo considers the
situation is becoming acute and that
something should be done at once to
avoid the disastrous results which will
follow a continuance of the present
policy"
New Policy Is Announced.
The next day Wilson conferred with
McAdoo and Lansing on the loan ques-
ton. An Anglo-French financial COM
mission arrived in this country three
days later, and not long thereafter the
administration made known it would
not object to loans to the allies.
One month later ]. P. Morgan g. Co..
f1oated a $500,0o0.000 Anglo-French
issue of five-year per cent bonds.
The committee became confused over
its pile of documents during the ques-
tioning about loans this morning,
finally calling a recess at ll:30 o'clock
until pm. to permit its staff to
straighten out the papers.
During the recess Morgan gave fur
ther evidence of his new policy OF
friendliness toward photographers by
posing with one while a fellow cam
eraman snapped the pair shaking
hands.
DENY White House Leverage"
Morgan and Lamont vigorously de-
MED Yesterday afternoon that lever
age" applied at the White House in
duced President Wilson to rt erse ad-
ministration policy against loans to
belligerents.
The reversal was followed by huge
extension of credits to the allies by
Morgan firms.
Senator Clark, Democrat, of Mis-
souri,, charged that Morgan's company
withdrew support Of the foreign ex-
change market with view to frighten-
ing the American Government into
liberalizing its policy on war loans.
Both Morgan and Lamont replied
there was no planned coincidence be-
tween the change in loan policy and
the withdrawal of support Of foreign
exchange, which led TO q drop in the
British pound.
Exchange Situation.
The committee produced a cable
from Morgan to his London asso-
ciates, which said:
I'VE have today sent word to the
Secretary of the Treasury that We
regard the exchange situation as very
serious from the point Of view OF
our commerce, in order that the ad-
ministration may be fully informed
and with hopes that they might in
some way be helpful. making no def
mite suggestions, however"
Another document, introduced by
the committee, showed that Treasury
Secretary McAdoo urged President
Wilson to change the strict loan policy
established by Secretary Of State
Bryan.
I'VE have tied our hands" McAdoo
told Wilson, 80 that we cannot help
ourselves to help our best customers.
Wilson then was shown to have
notified the State DEPARTMENT that
the administration would not oppose
nor advocate proposed allied lean,
but the President said the Information
should be orally conveyed" and 40.
in writing"
Display Indignation.
Morgan and Lamont displayed in
dignation at persistent questioning
regarding Leverage" applied to force
the administration to alter its loan
program.
"You talk as though business men
here were wicked enough to want the
war to be prolonged" Lamont said.
I'm almost tempted to make speech
on that"
Morgan commented with great
gravity:
do you suppose that because busi-
ness was good. I wanted my son to go
to war? He did. though"
He referred to Junius s. Morgan, jr.,
who was a commissioned officer on a
destroyer during the war, and who now
is a partner in the Morgan firm.