Evening star., 1931-12-18
HOUSE WILL SPEED !
MORATORIUM PLAN
Democratic Leader Says
Session Will Continue Until
Resolution Is Passed.
Continued From First Page.)

1
resolution, also gave assurance that he
pans prompt action on several of the
rlesioents relief bills. He said "tomor-
TOW we expect to take up the Federal
Land Bank relief bill, and we hope to
pass that bill tomorrow. After that and
aiter the holidays, the first major piece
OF legislation We expect to consider is
the Strong bill, providing emergency
financing facilities for banks and other
nnanc1al institutions
hearings on that bill commence to-
Gay and as soon as we can get 1t on
tne moor, we shall take that up. And
rev moments ago the President sent
INSTRUCTIONS to me to say that while
tne Dill for relief Of the Federal Land
Banks, which we take up tomorrow
provides relief for those banks, he will
UNDERTAKE to take care of the needs
OF the Joint Stock Land Banks, the in
termeolate credit institutions and other
banking institutions out of the emer-
gency financing bill although they are
not expressly named in that bill We
snail try TO do the best we can to carry
out tnat program on this side, If the
gentlemen on the other side of the
House cooperate with us"
The resolution authorizes the post
ponement of the amounts PAYABLE to
the United States Government by its
foreign debtors during the fiscal wear
1882, totaling $252, 2,566,S03 The legis-
lation Is necessary to permit the carry
ing out OF the Hoover moratorium by
| this Government.
The resolution was supported in a re-
port from the Ways and Means Com
mittee OF the House by Representative
Collier. chairman of the committee
Democrat, from Mississippi, and at
tackled in the minority report signed pv
three Democratic members of the com :
mittee, Representatives Sanders of
Texas. Eastlick of Tennessee and Vim
son of Kentucky.
Europe Threatened by Crisis.
In his majority report Mr.. Collier
said;
The testimony given before the
committee indicated that adverse
economic developments in Europe had.
by the beginning of 1881. placed the
national economy of certain countries,
particularly of Central Europe. under
severe strain. BY June. it was evident
that events were rapidly taking toward
major crises. the repercussions of which
would seriously affect economic condi-
tions throughout the world and which
ditions in this country.
1T became evident by the first of
| June that a slow run had begun upon
German banks, in fact, upon the CEN
! trail institution, the Reichsbank. Sub
sequently, this run assumed major pro-
portions Between the end of May an0
June 30, the outflow of funds from
Germany resulted in the reduction OF
| $3.50, 900 900 in the Reichsbank hold
| ings of gold in foreign exchange.
Catastrophe Avertcd.
To meet the impending crisis anc
to avoid the inevitable adverse effects
| of the impending catastrophe upon
conditions in the United States as well
| as in Europe, the President proposed
subject to confirmation by Congress
the postponement during one year from
July l, 1881, to June 80. 1882, Of all
payments on intergovernmental debts
| reparations and relief debts, both
principal and interest
| This proposal was made in the be.
| lief. which subsequent events seemed tc
| justify. that timely action should con-
| tribute to relieve the pressure of ad.
verse forces operating in foreign Coun-
! tries and should assist in the re-eStab.
! llShment of confidence. The announce.
ment of the proposal on June 20 result
ed in the immediate termination OF
withdrawal Of funds from Germany anc
| increased prices of commodities and Sc.
curity in world markets. Although these
benefits were not entirely retained, the
! impending catastrophe was averted."
Mr.. Collier reported for the commit
tee that it had investigated the pub
lished report that some of the nations
indebted to the United States had de-
posted the necessary funds with their
fiscal agents in the United States to
pay the amounts which were due on
December IS. He said that Henry P
Dawson of j. P Morgan g. Co. told
sented the United States, Great Brit
ain and France and that these govern
ments had not deposited any funds to
pay their installments to the United
States on December Is, nor lad they
| communicated with the company on
the subject.
Foes Given Full Hearing
at seems highly significant to your
committee" Mr.. Collier said, that de-
spite the widespread publicity of this
ment June 20, no individual or repre-
sought an opportunity to be heard in
opposition to the resolution. with the
exception of three members of the
House, who were given full hearing
One of these members of the House
to whom Mr.. Collier referred was Rep
resentative McFadden of Pennsylvania
who recently assailed President Hoover
and the moratorium on the floor of
the House
Mr.. Collier called attention to the
so-called Ragon provision inserted in
the resolution by the committee, declar-
ing it not to be the policy of Congress
to agree to any debt cancellation or
reduction. He said that the committee
is firmly OF the opinion that nothing
in the resolution can in any manner
be construed as indicating a policy of
debt cancellation or reduction. In
view, however. of the statement by
opponents of the resolution. he said the
committee felt it desirable to set the
matter at rest by insertion of the
Ragon amendment.
Minority Hits Hoover.
The minority report asserted that
President Hoover did not have the con-
stitutional right which he did in June
with respect to the moratorium; that
this was a matter to be determined by
Congress in session. The minority re-
port also declared that there was nc
necessity for the moratorium. In sup.
port of this contention, the minority
said: Germany is the nation to be
helped. The sum of s6OOO,OOO is the
only sum due by Germany to this coun-
try. No one even suggested that Eng
land, France and Italy are not ready
willing and able to pay their obligations
due us on the due dates. These three
countries would pay to us during the
fiscal year 1882 the sum of S224,227, ,l25.
The charge was made by the minor
ity that the moratorium lis forerun.
ner and curtain raiser to debt cancel
lation or another moratorium" 1t
called attention to the fact that the
President in his message to Congress
had recommended the recreation of the
World War Debt Commission for the
purpose of reviewing foreign debts. The
nIr 49, l. l.