NO SUSPENSION

Dominion, Volume 26, Issue 47, 18 November 1932, Page 11

NO SUSPENSION

Next War Debt Payment HOOVER’S DECISION Matter Left) to Successor i - ■■■ OPPOSITION IN CONGRESS By Telegraph—Press Assn.—Copyright. (Received Nov. 17, 7 pan.) New York, Nov. 16. The Washington correspondent of the "New York Times” states that President Hoover indicated to-day that he would not recommend to Congress a suspension of the war debt payments due on December 15. It is said that this decision was reached after he had been informed of the almost unanimous opposition among members of Congress to the proposed moratorium. Mr. Hoover will not even move for a revival of the Debt Runding Commission to study the capacity of debtor nations to pay unless the President-elect (Mr. Roosevelt), in the forthcoming conferences with the President, favours such a course. No programme will, In fact, be proposed unless it is acceptable to Mr. Roosevelt. It Is Intimated that Mr. Hoover will Insist that the payments due on December 15 should be met before he will con-

sider suggesting to his successor 'the creation of a commission to consider revision of the debt-funding terms. Mr. Hoover to-day reiterated that he was opposed to cancellation but expressed the belief that the United States would obtain commercial advantages If the debts were reduced. It Is understood that the President told Senators to-day that he was very much surprised that foreign countries should ask for a suspension of payments this time, holding that their case would have been better received by Congress if they had asked for a new study of the situation, and not made a new study follow upon suspension.' • Democratic Senators reaffirmed their belief tOrday that the new Administration .will. prefer to throw the •debt question into the International Conference which will also consider reciprocal tariff treaties and other economic factors as aids to world recovery. The suggestion that the United States should grant a further moratorium has led to a movement among farmers and other debtors in this country for similar concessions in private and semi-governmental debts. Senator Fess said that it would open the way for a general move by our own people, demanding concessions in the case of debts contracted with Federal Land Banks, Home Loan Banks, and . the Reconstruction Finance Corporatiom “Foreign nations injecting this problem into our domestic situation at this inopportune time have embarrassed this Government,” he said. Important private pronouncements on the debt situation came to-day from Mr. Louis Taber, head of the National Grange, the most important farmers.’ organisation in America, and Mr. Thomas Lamont, of the J. P. Morgan Company. The former advocated a postponement of the collection of interest charges for a brief period and a limited reduction of products. The latter declared that the debts were “perfectly just but impossible,” and that payment would choke the channels of world trade.