PASSED BY CONGRESS

Evening Post, Volume CXXIII, Issue 102, 1 May 1937, Page 9

PASSED BY CONGRESS

NEUTRALITY LAW

GOODS IN WARTIME

Cntted Press Association—By, Electric Tele-

irraph—Copyright.

WASHINGTON,,ApriI 29.

The Senate, and, the" House of sentatives enacted the permanent neutrality law, with a discretionary "cash-and-carry" clause, meaning that ' in time "of war belligerents may be supplied with, certain goods other than War materials provided they pay^ cash and. carry ; them in their own ships.

A cable from Washington ■• dated March 4 stated that the Senate passed by- 63. votes to .6 . Senator :Key; Pittman's permanent neutrality resolution providing for an embargo on arms and munitions •as soon as the ,: President proclaims, a war. or civil .war anywhere in the world, and a prohibition of loans' to all. belligerents, rejecting several amendments, Including one by Senator W. E. Borah , .to make'the "cash-and-carry", provisions, which forbid American vessels in time of war carrying' embargoed commodities, but permit belligerents to ,buy in America, on a cash basis and carry purchases in their own ships discretionary instead of mandatory.- Senator : ' Hiram .W. Johnson led the opposition, insisting that the measure would, establish, a "scuttle and run" policy. which was worthless to keep America out of a war. Later the House of Representatives by :an overwhelming majority accepted : a different neutrality plan, the Mcßeynolds one, patterned more closely, on : tha President's desire to have discretionary .power 'in applying war-time bans. The two' resolutions then, went to a conference; committee whose purpose was to try to reach a compromise acceptable.to both Houses. The vital point -of difference, : was whether or: not the outbreak of ■: war should be an automatic signal for the adoption of neutrality measures. Both included the "cash-and-carry" pain.