The Washington times., 1936-02-06
SENATORS END
MUNITIONS
INQUIRY
BY EDWARD b. LOCKETT
International News Service


was complete today, as the Sen
ate Munitions Committee wrote
the final chapters Of its inVesti-
CATION Of the wartime affairs Of
the banking house Of j. P. Nor
gan and Company.
Using the total amount ex-
pended by the committee up to
now as a yardstick, it may be
seen that the Morgan hearing
alone, counting preparation, must
have cost approximately 100000.
For this sum the committee pro-
duced q record that has, in many
respects, rewritten earlier ana
more casual history.
There was nothing casual about
the Morgan record. Committee in
veStigatorS spent nearly year in
its preparation and presentation.
AS finally written, it threw a cruel,
brilliant searchlight upon the mo
tives and actions Of the powerful
figures behind the shifting econo-
mic scenes just prior to, and dur
ing the World War.
Blame Disputed
Committee members drew from
the mountain Of facts presented a
conclusion that international bank
ers were in large part responsible
for American entry into the World
War. With this conclusion not
only the MorganS, but q number
of Senators quarreled.
None could disagree, however.
that the hearing revealed web OF
economic entanglements abroad as
entrapping this nation and finally
drawing it into q conflict on for
eign shores. The record was re
plete with instances bearing out
this contention factually.
Committee members hoped to
use the lessons taught by the
Morgan inquiry as a hammer in
driving home their arguments for
drastic and mandatory perma'
nent neutrality legislation, but
whether they will be successful
in this remains to be seen. AS
the hearing was concluded in a
night session somewhat dramatic
from its very WEAKNESS, the Nor
gan partners proved reluctant to
draw conclusions or make Sug.
geStions as to how economic pit
falls might be avoided in the
future.
An effort near the close of the
long inquiry to get a concise
statement from Morgan partners
as to the best way for this coun-
try to collect the war debts
proved disappointing too. Incl
dentally. Thomas w. Lamont,
one Of the partners, offered the
suggestion that negotiations be
opened up for q scaling down
Of the debts and refunding opera
tions. but did not go into great
detail. He frankly offered no
hope Of this country's collecting
the present outstanding debts in
toto.
Outstanding Features
There were three outstanding
revelations developed in the hear
ingS. They were:
!. At the outset of the war,
American bankers took advan-
tage Of what they termed was a
perfectly natural chance for
new and lucrative business in
heavy purchases by the Euro
pean belligerentS in this coun-
try. These purchases soon es.
tabliShed in this country heavy
British and French credits
which the latter two countries
at frequent intervals had trou-
BILE meeting. Thus at the out.
set, an international economic
web tying America to the allies
was created.
2. AS foreign purchases in.
creased and the allied govern
mentS owed more and more
money in this country, the atti-
tude Of the administration un-
der President Woodrow Wilson
was Subtly changed in favor Of
the allies. AS early as 1915. the
record showed the bankers,
heavy creditors of the British
and French, seeking to get the
administration to approve flota-
tion of British and French loans
in America. In this they were
successful.
8. When it was all over, the
private debts of the allied gov
ernments to the international
bankers in this country were
paid-but the British and
French governments owed this
Government money which has
never been paid.
FIareup in Senate
The Morgan hearing brought
one major flareup on the Senate
floor, and for a few days brought
a real threat of cessation of the
inquiry. This involved the charge
by the committee chairman, Sena-
tor Nye (R.) Of North Dakota that
President Wilson and his wartime
Secretary of State, Robert Ian
sing, lied to q Senate committee
Southern Democrats, led by
Senators Connally Of Texas and
Glass Of Virginia, ripped into the
munitions committee as a pub
icity seeking body, and Glass
attacked Nye in q scorching ad
dress such as has not been heard
in the Senate in years. How
ever, the mittee cam c