AGREEMENT REACHED.

Star (Christchurch), Volume XLIV, Issue 296, 14 December 1931, Page 1

AGREEMENT REACHED.

Debt Holiday will Not be Party Issue. United Press Assn.—By Electric Telegraph—Copyright. WASHINGTON, December 12. An informal understanding was reached to-day between the Administration and leaders in the Senate that foreign Governments would not be considered at fault if their war debt payments, which are due next week, are not paid pending formal ratification of the one-year moratorium. Mr O. L. Mills, Under-Secretary to the Treasury, discussed the situation with leaders of both parties in the Senate. He said that the Secretary of State, Mr H. L. Stimson, will deal with foreign governments respecting their payments. He does not expect Mr Stimson to make any formal statement on the question. Mr 11. T. Rainey, Democratic leader in the House of Representatives, has promised that his party will not make the moratorium a party question. Mr Rainey said that he would vote against it, but the Democrats planned to leave it to individual members to vote as they pleased. He saw that the opposition would be formed of both Republicans and Democrats. However, the House would act on the moratorium before Christmas, and would send it to the Senate before Christmas. Payment in Silver. Senator Reed Smoot, chairman of the Senate Finance Committee, informed President. Hoover to-day that he would introduce a Bill on Monday to permit payment of foreign debts in silver, at market value.