The Waterbury Democrat., 1944-09-28

Almost anyone else in his shoes and there were othorS-would have made it,
 For more than ten years, Dulles and his law firm, Suili- ven and Cromwell, had been try ing to salvage some or the cash which American investors, big and little, had poured li&e e gold on harvest into Germany, In Tact, Dulles at various times was on both ends of the European hoadS fiaseo -- tho promotion end and tho salvaging end, Like other pig Wall StreeterS, he was better Nt promtoion that at sOlVNging,
 All through tho years follow ing the last war, Dulles was one of the lawyers who devoutedly defended the idea that American money should flow into Europe,
 "It Is of tremendous import ance," he told the Foreign Pol Icy Association In April, 1926, "that nothing should occur Co bring about any long continued cessation In American lending to foreigners There Is no req. son why we, for many years to come, should not build up our investment abroad"
 DEFENSE OF FOREIGN LOANS
 Later In the same year, Dulles oyen wrote on article ia tho mag aZlne Foreign Affairs emphati" eally disappearing of the state Departments policy Of forbidding loans to pay for armamentS for foreign countries. He advocated unrestricted trade in arms and military supplies" and tho right 2 of American bankers to make loans for militray purposes,
 Again, in 1928 he told the Foreign Policy Association;
 "Therc Is no basis for tho popular belief that loans Co foreign countries, tOtalllng Sil,- 100000 since the war, have talk on that much money out of the United States .. In financing and moving these surplus goods, our bankers have performed q great service, both Co this cOun. try and to the world"
 Even up until io30, Dulles eon- tinued optimistic about American Investments In Germany
 "Gcrmany has made great nPORreSS under the Dawes Plan," he said on Oct. 2l. 103O. "uer
 national income and Govern ment income have grown to a point where the separations charge constitutes . readily berablo percentage"
 By this time, of course, reparH. tons had hoen draStieally sealed under the Dawes Plan, so that tho loans which American bank ers had poured Into Germany, actually to pay those separations, would not be in default
 Tho real collapse Of Wall Streets house of cards in Europe came just e little later To head 1t off, Herbert Hoover nr- ranged 0 moratorium on German payments in 1881, but by 1853, Dulles was retained by Brown Bros Hartman to go to Berlin and try to salvage something out of tho chaotic wrecknge,
 BoND. HOLDERS LOSE
 He sailed for Europe on the same ship with Albert Wlggin of the Chase National Bank Wig ain represented tho short-torln crcditofs-the banks that had made call loans of their own money to Germany, Dulles reps resented the longsterm creditors the bondholderS, who had pur- chased German bonds In good faith from the banks.
 Tho banks had no stake in tho long-tcrn bonds, but they had e tremendous stake in tho Short- term credits. Tn the end, tho banks collected their Bhort-term notes, but the bonds which they had passed on to the public went into default. American holders Of there has to be Q definite accept ancc on our part of something of- fered.
 The second thing necessary for