U.S. Act Forbids Loan to Britain

Manawatu Times, Volume 65, Issue 307, 16 December 1940, Page 2

U.S. Act Forbids Loan to Britain

NO REQUEST MADE. SAYS TREASURY HEAD WASHINGTON, Dec. IS. Mr. Henry Morgenthau, Secretary to the Treasury, said that Britain had not asked for a loan. Furthermore, the Treasury considers that the spirit of the Johnson Neutrality Act forbids » loan shoved the British make the request. It is admitted that lawyers might find loopholes in the Act, making it technically legal for the United States to lend to Britain. “I w’ould certainly not be a party to a loan to Britain or any country if it comes under tbe Johnson Act, without Congressional direction,” said Mr. Morgenthau. Mr. Alfred Landon urged the United States to subsidise British war purchases and to extend the' working w’eek in order to help defeat Hitler, but opposed sending ships into the war zone. Mr. Winthrop W. Aldrich urged prompt and generous financial aid for Britain before England's financial sands run dangerously low'. ‘‘lf the pledge of both political parties favouring every aid to Britain short of war means anything.” he said, "it means that the United States’ full industrial and financial strength shall be thrown into helping England. Let us meet the issue head-on without subterfuge and without evasiotf and put it directly to Congress to provide Britain with the funds she will need in the near future, which we will be able to furnish by • Federal guarantee, a British credit lean from the United States Treasury or an outright grant.” The Acting-Republican Leader, Mr. Warren-Aurtin. said that the Neutrality Act should be revised to permit American ship* and citizens to return free commerce on the high seas, also to

permit the extension of monetary aid to Britain.