DEBT SUSPENSION PLEA

Hawera Star, Volume LII, 18 November 1932, Page 5

DEBT SUSPENSION PLEA

Immediate Move Opposed ATTITUDE OF MR. HOOVER Sums Due In December INSISTENCE ON PAYMENT ■REVISION QUESTION LATER. , \ .. - 4 . (United Press Association—By Electric Telegraph Copyright.) NEW YORK, Nov. 16. President Hoover indicated to-day - that he would not recommend to Congress the suspension of the European war debt payments on December 15, says the Washington correspondent of the “New York: Times.” It is said this decision was reached after Mr Hoover 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 tile debt funding commission to study the capacity of the debtor nations to pay unless Mr. F. D. Roosevelt, President-elect, in the. forthcoming conference with the President favours such a course. No x>rogramme will, in fact, be proposed unless it is acceptable to Mr. Roosevelt. ’ •:>

,It as intimated that Mr. Hoover will insist that the payments due on December 15 should be met before he will consider the suggestion to his successor of th e creation of a commission to consider revision of the debt funding terms. Mr. Hoover to-dav reiterated- that he was opopsed to cancellation, but he expressed the belief that the United States would obtain commercial advantages if the debts were reduced. TALK WITH SENATORS.

It is understood the President told Senators to-day that lie was very much surprised that foreign countries should ask for the suspenion of payment at this time, holding that their ease would have beyii better received by Congress if they had asked for' a re-study and not made the re-study follow upon suspension. . ' Democratic Senators reaffirmed their belief to-day that the new administration will prefer to threw the debt question into the International Eoocmic 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 t'airmqrs -and lotheir debtors in this country for similar concessions in private and semi-Governmental debts. Senator Fess said it would open the way for a general move by tlieir own peopl e demanding concessions in -the. case of debts contracted with the Federal land banks, home loan banks and the Reconstruction Finance Corporation. “Foreign nations by injecting this problem ito our domestic, situation at this inopportune time have embarrassed this Government,’.’ he added. ' '

Important private pronouncements on the debt situation came to-day from Mr. Louis 'Taber, head of the National Grange, the .most importantfarmers’ organisation in America, and Mr. Thomas Lament, 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 the debts. „ , ' ■: ,T' Mr. Lamont declared that the debts, were fr perfectlv iust but impossible.’’, Payment would choke the channels cf world trade.