REPARATIONS PROBLEM

Otago Daily Times, Issue 21521, 18 December 1931, Page 9

REPARATIONS PROBLEM

THE HOOVER MORATORIUM RATIFICATION AWAITED (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON, December 16. (Received Dec. 17, at 5.5 p.m.) A strongly worded denunciation was made to-day of the charges by Mr M'Faddon, a Republican member of the House of Representatives, that President Hoover had deceived the American people to aid Germany. Mr Beedy, a Republican representative from Maine, called Mr M'Fadden’s statement “ unquestionably a falsehood.” Democrats were prompt to point out that the charges against the President did not come from their side and a debate broke out shortly after. The Under-secretary of the Treasury (Mr Mills) told the Senate’s Finance Committee that failure to ratify the moratorium would do irretrievable damage to the country. Mr Mills warned the committee that any deviation by this country from the moral principles involved might be taken by other countries as an excuse for default in payment of debts. DEBT SUSPENSION SACRIFICES. NO MONOPOLY BY AMERICA. WASHINGTON, December 16. (Received Dec. 17, at 10 p.m.) While Mr MTadden’s attack on President Hoover is expected to have domestic political repercussions, the moratorium resolution to-day moved towards an apparently sure and swift passage through the Hbuse of Representatives before the week-end recess, 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 the day’s proceedings by Mr Stimson, who, in a formal statement, disclosed the text of President Hindenburg’s letter to President Hoover, 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 the American people alone had made any sacrifices in intergovernmental debt suspensions. The United States contributions totalled £250,000,000, France’s were £110,000,000, and Britain’s £55,000,000. It was apparent, therefore, that the sacrifices on a population basis were greater on the part of other nations. The Senate Finance Committee heard the Under-secretary (Mr Mills) on the moratorium question. He pointed out that the debts were really moral obligations, and could not be collected with the sheriff’s aid or that of the army. They must be considered on the basis of the debtor’s condition. The committee will to-morrow question Mr Mitchell, president of the National City Bank, and Mr Lamont, of the Morgan Company, concerning foreign securities held in the United States and bearing on debts and the moratorium. BRITISH AND FRENCH VIEWS. EXCHANGED IN PARIS. (British Official Wireless.) RUGBY, December 16. Sir Frederick • Leith Ross, of the Treasury, will leave to-morrow for Paris, where he will exchange views with the representatives of the French Government in anticipation of the international conference on reparations which will be held after the report is received from the special Advisory Committee under the Young Plan which is now sifting at Basle. The date and place of the meeting have not yet been fixed. GERMANY’S CAPACITY TO PAY. EVIDENCE HEARD AT BASLE. ■ (British Official Wireless.) RUGBY, December 16. (Received Dec. 17, at 5.5 p.m.) A drafting sub-committee consisting of Signor Beneduce (Italy), Sir Walter Layton (Britain), Professor Rist (France), and Dr Melchior (Germany) has now begun work on the report of the Young Plan Advisory Committee, which is engaged as Basle in an examination of Germany’s financial capacity. The committee yesterday heard a statement from Dr Homberger on the financial position of the Gorman railways, which, under the Young Plan, contribute £33,000,000 annually, equivalent to the amount of unconditional annuity to reparation payments. Exhaustive evidence has now been taken on every aspect of Gorman finances and this, has gone to show that all of the three principal sources of money earmarked to provide reparation payments have suffered a substantial diminution. Meanwhile other committees are examining the railways accounts and points of detail concerning the German Budget.