Evening star., 1936-01-10
BY REX COLLIER.

Displaying keen resentment at i'm
plications that his company "manipu-
lated" foreign exchange to frighten
America into liberalizing its policy
on loans to belligerents in 1915. J. p.
Morgan today vigorously denied to the
Senate Munitions Committee that he
ever did such a "discreditable thing"
Thomas w. Lamont and George
Whitney. Morgan partners. joined in
the denials during a heated debate
with Senator Clark. Democrat, of
Missouri. over committee charges Of
pressure" by Morgan on President
Wilson to alter the loan policy.
1T seems to me-" Morgan expostu-
lated. there is an idea in the minds
of the committee that we brought on
the exchange panic of August, 1918.
Il want to deny as clearly and
emrhatically as I can that such a
thing was ever thought Of. That
would be a most discreditable thing.
1t would be entirely foreign to our
history and our tradition. We never
did such a thing In our lives"
Lamont Protests.
Lamont protested particularly to use
of the word leverage" by COMMITTEES
members to describe the so-called
pressure" put on the administration
to permit the Morgan company to
float allied loans in this country.
I'VE did nothing that could be con-
strued as leverage" declared La
mont. I'VE just did what was usual
and proper in good banking"
Senator Clark read a personal"
letter of September 6, 1915, in which
Secretary Of State Lansing advised
President Wilson to modify a ban
previously placed on loans to belliger-
ents by the then Secretary of State
William Jennings Bryan.
Lansing told Wilson that unless
European countries could get money
with which to purchase goods. Ameri-
can export trade would shrink, re-
sulting in industrial depression, un-
employment and suffering
Senator Clark charged that this
"about-face" on the part of the State
Department was the direct result OF
leverage" by means of breaking
down of the exchange market" by J.
P Morgan g. Co.
Chairman Nye declared he is more
firmly convinced than ever that it
was the Commercial situation" pre-
cipitated by the break in exchange
that forced the United States to
abandon its strict neutrality policy on
loans. He contended this inevitably
dragged America into the war.
Letter Held Embarrassment.
The Lansing letter to Wilson point
ed out that the Bryan pronouncemens
against loans on the ground they
would be inconsistent with the true
spirit Of neutrality" had become "a
source of embarrassment"
I'VE are face to face" Lansing
warned Wilson, with what appears
to be a critical economic situation.
which can only be relieved appar-
emily by the investment of American
capital in foreign loans to be used in
liquidating the enormous balance OF
trade IN favor of the United States
Can we afford to let a declaration
as to our conception of the true spirit
of neutrality made in the first days
of the war stand in the way Of our
national interest, which seems to be
seriously affected?
IF we cannot afford to do this, how
are we to explain away the declara'
ton and maintain a semblance Of
consistency?
MY opinion is that we ought to all
low the loans to be made for our own
good, and have been seeking some
means of harmonizing our policy, 50
Internationally announced, with the
fiotation of general loans. AS yet ]
(Caa NFOpcAN po1a Sl