Bankers And Allies

Northern Advocate, 9 January 1936, Page 7

Bankers And Allies

Revelations At U.S. Investigation

f United Press Association.-By Electric TelegraphCopyright.'] - (Received 10 a.m.) WASHINGTON, January 7. At today’s sitting of the Munitions Investigation Committee of the Senate, the well-known banker, Mr J. P. Morgan, stated that his firm had made loans to the Allies in 1915, as soon as the late President Wilson had consented to its doing so. The firm’s sentiments from the beginning were with the Allies, but bankers had nothing to do ' with laws of neutrality. “When the Government changed its policy,” said Mr Morgan, “we turned our toes around too.” ■ Witness contended that Germany’s insults, injuries and invasions of Belgium, rather than loans to the Allies, had drawn the United States into the war. “Proud of It.” “That the Allies found us useful, and valued our assistance, is the fact of which I am most proud in my business life,” he added. The day’s hearing threw considerable light on Mr Bryan’s break with Mr Wilson, and the , subsequent appointment of Mr Lansing as secretary of State. A secret memorandum, which Mr Lansing prepared as counsellor of the State Department, dated October 23, 1914, was presented in evidence.

Mr Lansing pictured Mr Wilson as believing that, as trade with belligerents was legitimate and proper, it was desirable that obstacles, such as interference with the arrangement of credit or easy methods of exchange should be removed.

A copy of this memo was supplied to the Morgan and other banks, but was not made public till today. This policy was completed at variance with Mr Bryah’si idea of neutrality, and apparently was one .of the causes of his resignation. Huge Transactions. Evidence that companies in which J, P. Morgan and Co. were interested sold to the Allies 363,000,000 dollars’ worth of goods before the United States entered the War, was given today to the Senate Munitions Investigation Committee. Altogether the Morgan firm purchased three billion dollars’ worth of supplies for the Allies, on which they received a commission of 30,000,000 dollars. It was also disclosed that Morgan invited the British Government, before America’s entry into the War, to purchase an interest in an American arms factory, and that the firm transmitted confidentially to the British Exchequer advance information concerning the draft of Notes which President Wilson wrote to the various belligerents.