DEBT MORATORIUM

Southland Times, Issue 21580, 18 December 1931, Page 7

DEBT MORATORIUM

MR HOOVER CRITICIZED

AMERICAN CONGRESSMAN’S COMPLAINT

CHARGE REPUDIATED

Washington, December 16

A strongly worded denunciation was made to-day of the charges made on Tuesday by Representative McFadden (Republican, Pennsylvania) that Mr Hoover had deceived the American people to aid Germany.

Representative Beedy (Republican, Maine) called Mr McFadden’s statement unquestionably a. falsehood. Democrats were prompt to point out that the charges against the President did not come from their side.

The Under-Secretary of the Treasury, Mr Mills, told the Senate Finance Committee that failure to ratify the moratorium would do irretrievable damage to the country. Mr Mills warned them that any deviation by this country from the moral principles involved might be taken by other countries as an excuse for default in the payment of debts. DEBATE IN HOUSE EARLY RATIFICATION EXPECTED. MR STIMSON’S WARNING. (Rec. 8.5 p.m.) Washington, December 16. While Mr McFadden’s attack on Mr Hoover is expected to have domestic political repercussions, the moratorium resolution to-day 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 Way's and Means Committee. An authentic note of a broad international policy, however, was introduced into the day’s proceedings by Mr H. L. Stimson, Secretary of State, who in a formal statement disclosed the text of President Hindenburg’s letter to Mr Hoover on June 20, 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 inter-governmental debt suspensions. The United States’ contributions totalled £250,000,000, France’s £110,000,000 and Britain’s £55,000.000. It was apparent, therefore, that sacrifices on a population basis were greater on the part of other nations.

The Senate Finance Committee heard the Under-Secretary' of the Treasury, Mr Mills, on the moratorium question. He pointed out that debts were really moral obligations and could not be collected with a sheriff’s aid or that of the army. They must be considered on the basis of the debtor’s condition.

The committee to-morrow will 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 the debts moratorium.