Leguia vs. Guaranty

President Augusto B. Leguia, hav-ing failed to attract American capital into his country overnight, has reverted to the last resort of the disappointed politician -- muckraking. He accuses the Guaranty Trust Co., of Manhattan, of throttling Peruvian loans in the U. S.

He charges that the Guaranty Trust warned a "big New Orleans corporation" against undertaking extensive developments of the port of Callao. Washington officials report that a concession for these works had previously been granted to a French concern.

Unless the Peruvian Government or the Guaranty Trust Co. cares to issue further statements, the charges of President Leguia will be dropped without official action by Washington. The State Department hopes, however, that Senor Leguia will not renew his protest as, in that event, the U. S. Government would be obliged to issue a reply to his allegations.

The secret of the incident supposedly lies in the fact that Senor Leguia made his campaign for office on a platform of economic development, calling for large foreign loans which he has hitherto been unable to float.