The New York herald., 1922-12-26
SMOOT SEES DEFEAT
OF BORAH PROPOSAL
FOR WORLD PARLEY~.,
Leaders VIII EndeayOr IL
Load the Plan With
Notifications.
INTENSE FIGHT AHEAD
Senators Hope Efforts Will
Not Tie Hands of Har-
ding and Hughes.
WARNING BY MCCORMICK.
Fears Grave Events Unless Al
lied Victors Reform Their
Economic Policies.
WARNING BY MCCORMICK.
SPECIAL Dispatch 70 THE New YoxK HrsAIps
New York Herald Bureau.
Washington. ID. C.. Dec. 2J. tf

Special Dispatch 20 THE NEW YoxK HrsAlrs
New York Herald Bureau
Washington. ID. C.. Dec. 2J.
Administration leaders in the Sen-
ate, it was indicated to-day, are pre-
pairing to mobilize the forces" to pre-
vent the passage in its present form
OF the Borah amendment to the naval
appropriations bill calling upon Pres.-
dent Harding to issue an invitations
for an international conference on the
world economic situation and for the
further reduction OF ornaments
Those opposed TO the Borah amend-
ment received strong support to-day
when Senator srnoot tRep.. Utah). q.
member of the World War Funding
Commission, issued a statement in
which he declared against the United
States calling an economic conference.
To do so. he pointed out, would be
10 disappoint the European nations,
for the reason that the requests which
they would present to this country are
such as this Government would be
bound to refuse.
Feeling that the President would be-
embarrassed by an authorization from
Congress for such q conference at this
time. the accredited Republican spokes-
men are now committed TO the strait
egy of so amending the Borah pro-
posal that the Administration might
regard It as more or less innocuous.
Conferences Are Arranged.
Conferences. are scheduled for the
next twenty-four hours at which win
be outlined the program for the modi-
fication OF the proposal for the eco
nomic conference. Senator Lodge
(Mass.), Republican leader of the Sem
ate: Senator James z. Watson (Rep..
Ind.) and Senator Charles Curtis
Rep.. Kan) will participate in these
conferences and when the Senate re-
convenes on Wednesday they are ex-
pected to be ready with amendments
to the Borah resolution.
What form the amendments Will take
was not Indicated. but the spokesmen Q.
the Administration express conGdo.,ce
tonight that they would be sucn az
would command the support OF a ma
jority OF the Senate and leave the Prest-
dent and Secretary Hughes free 70 con-
duct the American policy OF aid TO Gu.
rope along the lines already developed
and unhampercd by Congressional man
date.
senator MedilI Mccormick (Rep.. Ill).
who has just returned from Europe. is-
sued statement IN which he paintss.. "A
gloomy picture OF the economic situation
facing the European nations. He pre-
dicted the grave events" including food
riots .n Germany. the fall OF the franc
and the lire. before the end OF the win
ter. unless the world war victo-s show
more economic wisdom than they have
hitherto exhibited.
The burden OF reducing reparations. o-
laying the foundation for q loan whici,
would stabilize the mark and enable
Germany to pay the next installment of
reparstions Senator Mccormick places
on the allied Powers. lie will throw fis
strength 20 the opponents OF an interna-
tional conference to be sponsored By the
United States Government.
Following "a the text Of Senator Ne
Cor,uicls's statemen. outlining the Eu-
ropean situation as he found IL during
his recent visit.
THE financial situation OF many Of
The governments OF Continental Europe
is so desperate, the economic condition
OF the peoples who support them Is 80
serious that we may expect the gravesc
events before the end Of the winter uns
less The European victors IN the late war
act with economic wisdom. prudence and
foresight hitherto foreign 20 their polic-.
France has suffered terribly. Franco
seeks indemnities for her losses and So
cvrity' for her frontiers. but they can
only be found conformably with econoni-
Sc realities The contemplated occu-
patton og the Ruhr az far rs Essen by
five divisions Of French troops--or by
foreign troops AZ all--is nowhere an-
proved ia Europe outside OF France
The proposal is dlsappTovcd by tho
overwhelming majority Of responsible
and representative Americans IN all tho
European countries which would DO
affected by It's contamination. They
share the opinion of European ccono-
uists and flnanciers that no ccononffo
advantage would accrue 70 France from
such a course. but that on the contrary
70 would ,nurc 70 the hurt of France,
Germany. Belgium. Britain. Italy. scan
aiuavia and America through tho injury
70 German credit industry and trade.
Predicts German Hiots.
1T S. the Judgment of impartial and
Informed persons that the occupation of
,he Ruhr must result IA the SABOTAGE OF
industry BY the population Of the Basin.
which will further delay and diminish
the payment Of reparations. IL may DO
said in this connection that French milf
ltary authorities IN Germany Americas
and British diplomats. together with
German officials. agree that there viii
be hunger riots IN Germany this winter
Germany needs over si0o.ooo0p worth o.
American wheat. which she has no pres.
cGt means Of buying.
'Tf ne governments cannot agree uDou
q sound and rcalizablc program fof tie