Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-20
CLOSE STUDY GIVEN
DEBT PLAN BY US
Intimation Made That Wiggin
Report Went Beyond
Revision Question.
By the Associated Pres.

BY the Associated Press.
Administration silence still cloaked
today reactions OF the Washington
Government TO suggested solutions of
Germany's economic plight put for
ward by the Wiggin Committee of In
ternational Bankers.
High officials doubted any immediate
occasion for a policy declaration by the
Hoover administration would arise.
While the Wiggin report will be studied
closely, II was intimated 1t has already
disclosed ramificationS even beyond the
question of revision CT intergovern-
mental debts which attracted first at
tention
The Wiggin Committee has injected
the question of private German debts
sharply into discussion OF the world de-
preston remedies.
Up to now relation Of Germany to
the worldwide economic crisis has been
dealt with in international conferences
and negotiations only from the aspect
OF intergovernmental debts, reparations
due from Germany and war debts due
the United States.
Comment Is Refused.
Whether the report OF the Wiggin
Committee foreShadows some definite
efforts to work out q method OF scaling
down all of these German commitments.
both public and private, or is to be
taken merely as an advisory warming
from the bankers, is not known in
washington. Comment on the commit
tee report made in Basel was refused
in governmental quarters.
NO official even privately would at
tempt to unravel the meaning Of the
suggestion OF the Wiggin Committee
conclusions that the snow ball of Ger
many's foreign debts" both public and
private must be checked as a step to-
ward world economic recovery. From
the immediate postwar days on, Wash
ington has sought to keep out Of all but
one aspect of loans to Germany,
financed by American banking groups.
firmstively. Washington has dis
countenanced any such loans as might
directly or indirectly go toward expan-
sion OF the armament burdens of Eu-
rope. Otherwise it has followed a
hands-on policy, refusing specific ap-
prevail or disapproval for loans not chal-
lengeable on that ground
The White House, particularly dur
ing the Coolidge administrations de-
clined to risk the possibility that Gov
eminent sanction Of any loan might
be used to aid salesmanship of the
resulting securities to American inves-
tors Failure Of the loan under such
circumstances might have subjected the
Government to criticism
As an illustration OF the scope Of the
private loan question raised by the Wig
gin report, estimates of some authori-
ties as to the aggregate Of German
obligations under this heading run as
high as SIS 1000 900 600 OF that. it has
also been said, upward of half was
placed in the United States, represented
by securities now held by the American
investing public.
Report Called Personal Views.
The only glimpse of official reaction
TO the Wtggin Committee report was
the note sounded at the State Depart
ment, reminding inquirers the bankers
spoke for themselves and not for gov
eTnments. While the Wiggin study was
favored at the London seVen-power con-
versations on the German financial and
economic crisis attended by Secretaries
Stimson and Mellon, 1t has no official
status but Is purely advisory in scope
In the absence of any intimation Of
the attitude of the Hoover administra-
ton toward implications of debt and
reparations revisiors made by the Wig
gin report. previous declarations may
be significant. In launching the one
year moratorium designed TO tide over
the German banking crisis of June
July. President Hoover virtually para
phrased declarations of the Republican
platform of 1928 on which ne was
elected
The President then declared himself
unalterably opposed TO debt cancela-
ton, but added that the United States
would not exact payments beyond the
capacity Of debtor nations to pay. Ger
man reparations payments were wholly
European matter in which the United
States had no share or part, Ae added.
1928 Platform Quoted.
The 1928 Republican platform went
step further.
We know Of no authority which
would permit public officials acting as
trustees, TO shift the burden of the war
from the shoulders of foreign taxpay-
erS TO those Of our own people, >" IL said
In fact, Congress took the war debt
settlement matter wholly out OF presi-
Dental hands Immediately after the
war. Even the deferred payment scheme
involved in the moratorium suggested
by Nj. Hoover awaits congressional
sanction to become legally effective.
Under the circumstances the suGees-
lions OF the Wiggin Committee. as far
as now understood in Washington
would involve congressional initiative so
far as Eny nlSn Of Va- debt revision
might be involved