WAR DEBTS TO U.S.

Taranaki Daily News, 12 December 1931, Page 7

WAR DEBTS TO U.S.

MR. HOOVER’S PROPOSAL PLAN TO REVIVE COMMISSION TEMPORARY ADJUSTMENT “NATIONS UNABLE TO PAY” CONGRESS MOVE UNLIKELY By Telegraph—Press Assn.—Copyright Washington, Dec. 10. Declaring that the debtor nations could not pay, President Hoover asked Congress to-day to provide for temporary adjustments in the war debts of Europe to the United States. In a message submitting the June moratorium for ratification he proposed the revival of the commission which funded these debts. “As we approach the New Year,” Mr. Hoover said, “it is clear that a number of the Governments indebted to us will be unable to meet further payments to us in full, pending the recovery of their economic life. Therefore it will be necessary in some cases to make still further temporary adjustments.” The Foreign Debts Commission would go into the debts question in the light of the present economic emergency and make a recommendation to Congress. The President asked for legislative sanction of the moratorium within the next five days, "for it is on December 15 the next payments from, abroad will fall due.” He suggested provision for the payment of the instalment withheld over a ten-year period beginning on July 1, 14133. His statement of last spring, “I do not approve in any remote sense of the cancellation of debts to ns,” was repeated. , DRIFT TO PANIC REVERSED. *The effect of the moratorium agreement,” the President wrote,” was instantaneous in reversing the drift towards a general economic panic. It has served to give time to the peoples of those countries to readjust their economic life. The action taken was necessary and I am confident commends itself to the judgment of the American people,” The President again urged adherence to the World Court and vigorous action by the world to curb armaments. No discouragement should be permitted to turn the world from sane and reasonable limitation of arms, he said. Apart from reiterating America’s responsibility for maintaining the integrity of China, he confined his discussion of the Manchurian question to a review of the steps taken. The Speaker, Mr. John N. Garner, said to-day that the House would not act on the Hoover moratorium before December 15, the time for additional inter-Governmental war debt payments. “The House will certainly not pass such an important piece of legislation before we have some information on it,” Mr. Garner said. He contended that it did not necessarily mean that the Governments would default in their payments on December 15 just because Congress had failed to act on the Hoover proposals. Mr. Snell, leader of the Republicans in the House, agreed that the House could not act before Tuesday. INQUIRY ON FOREIGN SECURITIES The Senate to-day adopted without debate Senator Johnson’s ’resolution directing an inquiry into the amounts of foreign securities in this country. Investigation was ordered. As soon as the Hoover moratorium message had 'been delivered in the Senate Senator Johnson called for the inquiry as a part of his contention against a debt holiday. Immediately after the adoption of the Johnson proposal Senator Smoot, chairman of the Finance Committee, introduced a Bill to ratify the moratorium. More votes than are necessary for the ratification have already been pledged to President Hoover. Opposition to the revival of the War Debts. Commission was expressed by Senator W. E. Borah, chairman of the Foreign Relations Committee, tq-day.

The French Government has formally notified the United States of its position that reparations revision must be accompanied by a comparative scaling down of war debts.