Date: March 5, 1931
Location: Northampton, MA
The Senate has resolved that the executive department of the government should take no action concerning making foreign loans by the people of this country. Early in the Harding administration when credit was scarce and interest high, foreigners were borrowing our capital. There was nothing to prevent their getting it, even to use in hindering our own efforts for domestic or international welfare. Hence the suggestion, adopted after conference with banking interests, that the State Department be consulted before consummating such loans. Such a policy is pursued by some if not all foreign governments.
While there is much to be said for permitting our people to do what they want with their own money, yet it seems clear that there should be some harmony of policy between the great power of finance and our international relations. No new responsibility is undertaken by the State Department in stating its position concerning a loan. It does not assume the credit of the borrower is good or bad nor imply any additional burden to our government if the loan is not paid. It does assume that our financial power shall be conserved for our own people and shall co-operate with our diplomatic power.
Citation: Calvin Coolidge Says: Dispatches Written by Former-President Coolidge and Syndicated to Newspapers in 1930-1931 (Calvin Coolidge Memorial Foundation)
The Coolidge Foundation gratefully acknowledges the volunteer efforts of Robert Manchester who prepared this document for digital publication.