Salt Lake Tribune | 1914-10-31 | Page 2 | Loans Are Viewed as Private Matters

LOANS ARE VIEWED AS PRIVATE MATTERS WASHINGTON. Get. 30. Viewinc credit loftns 10 belligerent countries as private transactions, the Washington administration administra-tion will not attempt to interpose its Influence In-fluence against such transactions on the part of Uie American bankers. This was learned on the hi chest authority au-thority today, after it became known that German financiers were contemplating the establishment ofa credit loan in this country similar to the 5l0.u0o.000 credit fund negotiated by the National Cilv bank of New York and other bankers for the French Kovernment. The decision of the Washington administration admin-istration may nR t the purchase In the United States of about ?."-u. 000.000 worth of supplies by Russia nnd an equal If not a greater amount by 'imianv, Details of the expected transactions are lacking here. Hifrh officials of the Washington administration admin-istration insist that President Wilson has not chanced his view, a nnounced at the outbreak of the war, that the loaning of money to bel li Keren ts would be "inconsistent "in-consistent with the true spirit of American Ameri-can neutrality." A distinction was drawn by officials, however, between the ioant-referred ioant-referred to at that time sii'-h as bond Issues offered for public saie nd rredlt transactions intended as a checkine account ac-count aea mst the purchase hv belhpr-ents- of foodstuffs and supplies fixin American firms. View of President. The president rrilizcs that this government gov-ernment hay no Ics;lI riclit to oppo- lonns of anv diameter, nor is there any obligation of International law forbidding them. "Putins: the Rus.so-Japanese war loans wvp floated for Japan In the United Stales through public bond issuer. The president is understood, however, to be opposed to that form of Ion u liable to stir up ill feel in if and prejudice. ' officials have unanimously derided to refrain from dlscnsslnc the sublet of loans, hh the position of the coveriiment in the circumstances Is n embarrassing one. When J. P. Morgan & ( 'o. ask. d the opinion of the state, derartment ev-era ev-era I months ftco as to whether the ad-rniniMratlon. ad-rniniMratlon. would approve, of a loan to France, the Washington government ex-p ex-p reused It.sMf atiuM ft. Fankerj,, however, how-ever, are not obliged to ask the advice -i f the Wa s h I n crt o n a d m I n i v t ra t i ot i . and they are Just as much at liberty to en-ease en-ease in credit Joans nt American ammunition am-munition firms or hor dealers cro permitted per-mitted to S"nd munitions r.f war and horse.i to bell current Hi-tnleg. Government's Attitude. The American po ernmerit I undf-r no obligation to present their shipment, nor has it any poat under tb lawx nf the I'nited Pta tea to prevent commerce tn contraband. Th burden restw in such cases on the bellU'ereittH nffectnd. who can seize contraband, including cargocn of gold, on t lie high bas If dest hied to belligerent portw. "nde.r wIih t l. know n as credit loa ns there is no intention, it In understood, to export unv ?o'fl from Tlie United Ptales. Li rg" fniidM will be e.itabliched bv t he belli cere nt conn trie with their financial asrentH here, wlio will pay th Hi tin of the Kuropean nations to Amrh an dealers In munitloni of war a nd supplier. .The hankers will be rivph nhorf-time note.- bv the bolligrpnt guvernments with a much l)Mttr ih t e of Interest, it M said, thiii ordinarily could he obtained. In rotiirn for the-e con5lderat ions European Kovernment will agree tn spend large Fums of money In 1 lie United Pta I cs (r supplfev.