Banks And Foreign Policy

If the competition of foreign banks in the United States is wor­risome to bank officers, there is an even more nettlesome problem that American banks are discovering as they make loans to foreign governments. Some of our large commercial banks have been pro­viding the major portion of money needed by many overseas na­tions, but this business has serious implications. When these loans are not repaid on time they become disguised as financial aid to those countries, and in the eyes of the United States government the American bankers are indirectly making foreign policy deci­sions, thus diminishing our government's role in this field.