The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-06-22
Stimson Says Conference
Would Cause Program
to Lose Force.
JOY STIRRED ABROAD
Success or Failure May Be
Up TO France, Now
Studying Idea.
BY RAYMOND CLAPPER
United Press stan Correspondent

WASHINGTON, June 22.-Prompt
action on the part of foreign ma
tions will be necessary, Secretary Of
State Stimson said today, to make
effective President Hoover's pro-
posal for a one-year suspension Of
international debts.
Discussing the project in a press
conference, StimsOn said no inter-
national conference would be called
to debate Mr.. Hoover's suggestion.
The secretary explained the
United States was relying on in
dividual action by the several ma
tons concerned to put the program
into operation Stimson believes a
hearty immediate response will in
sure consummation Of the Sus-
pension plan, but that an interna-
tional conference would cause this
project to lose effective force upon
economic conditions.
Hinges on France
The state department had not
been informed shortly before noon,
today of the reaction of foreign
governments. Press dispatches re-
ported Prime Minister Macdonald
and his cabinet cordially had well
coined the Hoover plan. Stirnson
said the time had been too short to
permit formal acknowledgement of
the American proposal from abroad.
Outcome of President Hoover's
proposal appeared today to depend
upon France.
Other nations seem from unof-
fetal indications to be agreeable
with Germany jubilant. But note
of hesitation is heard in France.
ancient foe of Germany. And
Frances decision Is vital, for it
seems unlikely here that the plan
could succeed in its original form
without the cooperation Of such
an important power.
France is weighing the proposal
carefully, because it temporarily
would cost her more in dollars and
cents than any other country except
the United States.
Sacrifice Is Heavy
France is called on to sacrifice
$96,000,000 in the year beginning
July 1.-The difference between what
she receives from Germany and
what she pays her creditor nations.
The United States would sacrifice
$246, 100000.
What President Hoover proposes
is a years suspension of all pay
ments, principal and interest, on
all governmental reparations and
debts which are the heritage of the
World war He proposes that it be
done in one sweeping, all-inclusive
gesture, to become effective in Just
eight days.
1t is not so much money relief
that is involved, although that is a
considerable factor. More important
is the psychological tonic that Mr..
Hoover is endeavoring, by one bold
stroke to administer to an eco
nomically i'll world.
Seeks to Save Germany
His aims are to save Germany
from threatened economic and
political chaos, to restore confidence
and ease credit throughout Europe,
and thus to unclog the channels of
world trade. clubbing over details,
reservations, or nibbling at the
fringes would blunt the sharp, slim
ulating effect he seeks.
Mr.. Hoover returned to the
White House today from Rapidan
camp, where he went Saturday
night Immediately after issuing his
dramatic proposal. Motoring back
with him were Chairman Reed
Smoot Of the senate finance com
mittee, who will be in charge of
ratification of the project in con-
gress, and Undersecretary Of the
Treasury Ogden Mills, who will pre-
pare 1t for congressional study.
Smoot and Mills were expected
to collaborate with Secretary of
state Stimson in drafting the for
NAL presentation of the proposal to
the thirteen foreign governments
concerned. 1t was indicated these
communications would be dis
patcned late today or Tuesday.
Ratification Expected Soon.
Complete ratification of the pro-
ject by all nations will require
some time, although it would be
enectlve July l. In most countries.
legislative bodies will have to act.
Mr.. Hoover believes he already
mas enough congressman pledged to
secure passage Of the necessary re-
solution when congress meets in
December. Additional congressman
were expected to call on him today
to assure thier support.
1t was said on behalf of the
President that the response to his
proposal has been gratifying so far
as general comment is concerned
Of1lcial comment on the French
attitude was withheld.
The state department announced
tnat Mr.. Hoover had requested and
received from President Won Hin
oenburg report on German con-
ditions, but he CONSIDERS its con-
tents as confidential to himself, >,
The state department added that
the information thus obtained
corresponds to that obtained from
other official and private reports
and which is publicly current"
Seeks to Aid Recovery
i am suggesting to the American
people that they be wise creditors
in their own interest and be good
neighbors." Mr.. Hoover said In the
statement he issued Saturday night.