Evening star., 1931-06-25
.TWO-YEAR DEBT Io
|. DELAY CONSIDERED
U. S. Changed Plan In View
of Indications of Difficulty
in France.
BY DAVID LAWRENCE.

It became known today that the
United States Government was ready
to propose two-year moratorium and
that this was changed in view Of the
indications that such course would be
more difficult to get through the French
Parliament than a one-year suspension
Of payments.
It reveals, however, the extent TO
which America has been willing to go
in the interests Of better economic sit
uation throughout the world.
incidentally, those critics who are
Eaying the American taxpayers will
have to pay $245, 900 900 more in taxes
are being reminded by officials here that
since the Presidents announcement the
appreciation in the stock of one of the
largest American corporations alone has
been more than the total amount Of
the suspended payment by the United
States. This means that If values
should continue to increase, the state
OF American business will be such that
the tax receipts will multiply accord
ingly.
For If the American people are toda.J,
through the securities they hold, richer
by many times the $245, 900 900 Of sus-
pended payments, the resulting effect
on business will increase the direct and
indirect taxes all along the line.
Few DiscOrdant Notes.
Few discordant notes have been
sounded to the Presidents program.
The politicians are by no means clear
as to what Is ahead for them, but the
Democrats are supporting the President
whole le-heartedly. They are far more
interested III better business than in
their own political fortunes. And be-
sides they have the prohibition issue up
their sleeves just as soon as the eco
nonic issue has less potency.
It Is apparent, too, that the Hoover
group has been stimulated by the re-
sponse of the world to the moratorium
proposal. Some of the enthusiastic ones
are already predicting Mr.. Hoover,s re-
election, but this is only another way
of saying that everybody in politics has
recognized how difficult it would be for
the President to win again If the present
unemployment were to continue. An
upward curve in the business chart has
been looked upon by both Democrats
and Republicans alike as the key to the
presidential race Of 1882.
Example Of Leadership.
Far more important than the ultimate
political effect of the newest Develop
ments has been the probable influence
that the Presidents triumph may have
on his own psychology. Until now he
has been hesitant, timid and at times
so indecisive as to disappoint some of his
own followers. In New York, for in
stance, the Hoover stock has been very
low indeed for many months, largely be-
cause of the accusation that the Presi-
dent was not a forceful leader. The
moratorium proposal Is an example Of
what business men call courageous Lead
ership.
If Mr.. Hoover, seeing the reception
which his bold stroke has received IS
now to feel more independent of the
many influences that have beset him
and If he is to go ahead on domestic
as well as foreign questions With a
sure-footed program of a non-partisan
character, he will automatically en-
nance his own political prestige. As
for the country, it Is apathetic about
politics and personalities whenever busi-
ness is good and captious and irritable
about its public officials when business
is bad.
The United States Government Il
planning to follow up Its initiative on
world debts with q REORGANIZATION at
the proper time of the problem of
funding war debts. In this the CO.
operation of France Is the vital factor.
But all along the line here there is an
anticipation Of a forceful Hoover
administration.
(Copyrf1ht iesI)