The Waterbury Democrat., 1931-12-17
Moratorium Won't Be Approved Until
 After Christmas
Congress Too Deeply Stirred to Pass Measure Now
 McFadden, Republican, Is Outstanding Foe

before tie committee late yester- day after Stimson's appearance, and accused American officials of a "duaP' policy with regard to debts. They publicly say they are opposed to further reductions, while privately they are negotiat- ing for reductions, he said of ad- ministratipn leaders.
 The bluff and booming-voiced Representative Treadway, republic can, Massachusetts, who earlier had denounced McFadden before the committee, tried in vain to make the P.ennsylvanian take back this charge.
 Administration leaders have de- cided- to take no punitive measures against the obstreperous Pennsyl- vanian. unless he forces the issue himself.
 Republican Floor Leader Shell returned from the White House, where he discussed the affair with President Hoover, to say that MT Hoover was satisfied with the tongue-lashing administered by Representative Beedy, republican, Maine. Shell said Beedy "took the hide off McF'adden."
 The Pennsylvania republican delegation rebuked their colleague. with him present and dissenting, by voting confidence in the pres- dent and pledging support for the moratorium.
 McFadden has a companion-at- arms in what. appears now 10 be a futile effort to check ratification. This is thespare, agile and frown- ing Rankin, democrat, Mississippi, who opened the attack on the mo- ratorium on the House floor, and who carried his case to the ways and means committee with Me- Fadden.
 The senate finance committee, which heard Mills declare emphat- ically yesterday that the adminis- tratlon would not stand for can cellation, will begin tomorrow to inquire into what part, if any, the international bankers played in the moratorium negotiations.
 This has become the vital ques- tion now. Both McFadden and Rankin charged the moratorium was to permit foreign governments to pay private loans owed Amer ican bankers, an allegation which Stimson denied before the commit tee. McFadden said the interna- tional bankers had "siphoned" the deposits of American banks into foreign bonds.
 A paradoxical situation has de- veloped in connection with the Mcclellan moratorium amendment in the senate. The idea behind 1t ito put the senate on record against extension of the mora torium or debt cancellation--is generally favored, but no one wants to adopt the amendment.
 Apparently the consensus was expressed to-day by democratic Senators Swanson, Virginia, and ,Costigan, Colorado, and number of progressives and republicans who decline to be quoted.
 "I do not believe we should say now what we are going to do next July" said Swanson. We cannot know what the situation will be at that time."
 "I have always foupd that when say I will not do something" said Costigan, "the fates conSpire to bring about such q situation that l am forced to do it. I be- lieve we should handlie the one- year matter now and then decide next year what we will do then"
 Even some opponents of tho one-year proposal expressed their doubts about the wisdom of ac- cepting the Mcclellan amendment.
 The plan of the leaders Is to make 1t clear in debate that con- gress is not In a mood now to give inch beyond the one-year Individually major ity of the senate may announce against further concession, and yet the McKellar amendment probably will fall.
 Congress Is expected to buckle down to work on President Hoov- CTS three point program for re- lleving the nations financial diff faculties as soon as the moratorium issue is disposed of.
 The first step to set the compli- cated machinery in motion was taken yesterday, when the House banking and currency committee met to consider a bill to provide additional financing for federal land banks.
 The president himself indicated to party leaders that he would like to have the program, passed be- fore the Christmas holidays. The legislative situation in congress promises little hope of this.
 The presidents program in- cludes, in addition to the land bank proposal. plans for estab- fishing a series of home loan dis count banks, and widening of the rules on negotiable pa per by amending the federal re- serve act.