Financing The Allies

Manawatu Times, Volume 61, Issue 7, 9 January 1936, Page 7

Financing The Allies

Attitude of Morgan Company and America

WARTIME ACTIVITIES RECALLED

United Press Association—By Electric Telegraph.—Copyright. Received Wednesday, 7.85 p.m. WASHINGTON, Jan. 7.

Mr J. P. Morgan rnxurmeU tne ccnatc Munitions investigating committee tfiu.i nis uanaing house ■* turned loose” witn xoaus to tne Allies in l'Jio as soon as Ur. VVoodrow Wilson consented lo n. lie added .tiiat his firm's sentiments were iroin tne beginning with the Allies, "but the banners nad nuthing to do with settling tho laws of neutrality. When the Government, changed its policy, wo turned our toes around, too.”

Ho contended tnat Germany's insults, injuries and invasion of Belgium, rather tnan the loans to the Allies, drew the United States into the war. “That tho Allies found us useful and valued our assistance, is the fact of which I am proudest in all my business life.'' The day's hearing east considerable light on Mr Bryan's break with President Wilson anil the subsequent appointment of Mr Lansing as Secretary of State.

A secret memorandum which Mr Lansing prepared as counsellor for the Stato Department, dated October 23, 1914, was presented as evidence. Mr Lansing pictured President Wilson as believing that ‘‘as trade with belligerents is legitimate and proper, it is desirable that obstacles such as interference with the arrangement of credits or easy methods of exchange should be removed.”

A copy of the memorandum was supplied to Morgans and other bankers, but was not made public until to-day. This policy was completely at variance with Mr Bryan's idea of neutrality and apparently was one of the causes of his resignation.