Evening star., 1940-12-04
Britain Is Good Risk for Loan,
Jones Says; Emissory on Way;
Forced Labor Looms in EnqIond
Treasury Aide Is Due
Today With Data on
War Finances
Sy the Associated Press.

L
Secretary of the Treasury Morgen-
thau announced today that Sir
Frederick Philips, Undersecretary of
the British Treasury, was scheduled
to arrive in the United States today
Ito place the latest available infor-
nation Con British finances) before
the United States Treasury"
Mr.. Morgenthau'S statement con-
sisted of only one sentence. 1t fol-
lowed by only few minutes a state
ment by Secretary of Commerce
Jones, speaking as Federal loan ad-
ministrator, who said that the Brit
ish government was "a good risk
for loans.
1t was learned that the mission of
Sir Frederick was one of the chief
causes of a meeting yesterday of
nine important Government officials
At the State Department, mean
while. Secretary Hull said today that
all phases of the shipping question
in connection with aid to Britain
were being considered by various Off
cials but that he was not aware
that any decisions had been reached
on any further specific measures.
He made the comment in response
to press conference questions based
on the meeting of high officials at
the Treasury yesterday.
No Particular Plan.
On the subject of financial assist
ance to Britain, Mr.. Hull said he
knew only about public discussion
and had not heard of any particular
plan being discussed by officials,
although that might come at some
future time, he added
Mr.. Jones said the British gov
ernment was "a good risk" and that
ordinarily he favored lending money
to good risks when they need it
for proper purpose"
He declined, at press conference,
to amplify these two remarks fur
ther. He specifically refused to say
that he favored loans to the British
for war purposes now or in the
future.
He was asked whether the Johnson
Act prohibiting loans to World War
debt defaulters-including Britain
should be repealed.
His reply was mot now
Saying he did not know how much
money the British have left for pur-
chases in this country, Mr.. Jones de-
clared that they say they do" need
financial aid.
~ hi tr1,
Government officials who met at the
Treasury yesterday. They were re-
ported authoritatively to have sur
veyed the British purchasing and
financial situation. All he would say
about the meeting was that I'VE dis
cussed generally the production of
war supplies"
He declined to answer a question
whether war production was dis
cussed in the light of British
ability to pay for American mate
rails
Mr.. Jones statement that Britain
was good risk came after re-
porters had referred to a reported
statement bf Chairman Marriner
S. Eccles of the Federal Reserve
Board, which Mr.. Eccles later
denied.
The New York Herald Tribune
said last r'ght it had learned that
Mr.. Eccles, speaking in personal
capacity at closed meeting of
the National Industrial Conference
Board last week, had proposed that
this Government lend $2,500,000, 900
to the British government, taking
in return lien on empire gold pro-
duction for the next five years.
Loan Suggestion Denied.
At the Jones press conference this
reported statement prompted some
bantering by-play. Mr.. Jones de-
clined to comment on it. A short
time later Mr. Eccles, through
spokesman. denied that he had pro-
posed a s2,5O0,OOO 900 loan to the
British.
He was quoted by his representa-
tive as saying he was greatly dis
turbed" by the report that he had
done So After stenographic trans
cript of his New York speech was
ready the spokesman added, Mr..
Eccles would study it and might
issue a statement" about the situa-
ton.
Mr.. Eccles also was quoted as
denying that he had suggested re-
strictions on monetary powers of
the Treasury which might interfere
with his own ideas of credit control.
Imminence of an important new
development in the aid-for- Britain
program was indicated strongly by
the mere fact that yesterdays meet
ing at the Treasury was held.
First surmises were that the meet
was concerned with the question OF
supplying Britain with enough ton
mage to replace some of her recent
heavy shipping losses.
Ships Only One Item.
One informed official said, how
ever, that if merchant shipping was
discussed, lit wasn't the big thing
Tending to support this assertion