DEBT MORATORIUM

Inangahua Times, 18 December 1931, Page 3

DEBT MORATORIUM

A WARNING FINANCIAL DISASTER IN GERMANY WOULD SERIOUSLY AFFECT U.S.A. (United Press Assn—By Electric Telegraph—Copyright.) WASHINGTON, December 16. While McFadden’s attack on Presi dent Hoover is expected to have do mestic and political repercussions, a moratorium resolution today moved towards an apparently sure and swift passage through the House of Representatives before the week end recess, and this, despite opposition by other Congressmen, who spoke against the measure before the Ways and Means Committee. An authentic note of broad International policy, however, was introduced into tbe day’s proceedings by Mr Stimson, wbo, in a formal statement, disclosed tbe text of President Hindenburg’s letter to President Hoover on June 20th, and issued a warning, that financial disaster to Germany would be extremely dangerous to the United States. He said it was a mistaken idea, that American people alone had made any sacrifices in the intergovernmental debt. The suspensions of the United States contributions totalled 250 milmions, Prance 110, Britain 55. It was apparent, therefore, that tbe sacrifices on a population basis were greater on the part of other Nations.

The Senate Finance Committee beard Under Secretary Mills on tbe moratorium question. He pointed out that the debts were really moral obligations and could not he collected with the Sheriff’s aid, or that of the army.

They must be considered on a basis of debtors’ conditions. The Committee tomorrow will question Mr Mitchell, President of the National City Bank and Lammont, of Morgan Company, concerning foreign securities held in the United States and bearing on tbe debts and moratorium.