The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-12
HOOVER Debt
PLAN PER|LED
BY CONGRESS
President and Mellon Fight
Strong Opposition in
Both Houses.
FAILS TO GET PLEDGES
Mills Rebuffed in Effort to
Win Support for
Moratorium.
BY RAY TUCKER
Times STAFF Correspondent

WASHINGTON, Dec. 12.-The
administration. including President
Hoover, Secretary Mellon and Under
Secretary Mills, labored feverishly
today to save its proposal for world
debt reduction from congressional
Wreckage, and to convince congress
that it was more interested in do
mestic recovery than in tabilizing
Europe.
While President Hoover assured
congress that he was concerned
chiefly in domestic" improvement,
Mellon issued a public statement in
which he insisted that it was folly
to expect European nations, under
present conditions, to pay their OBJ
legations to the United States in
accord with present debt funding
arrangements.
The secretary of the treasury, in
the sharpest announcement yet de-
livered concerning foreign debts.
called upon congress to support the
Presidents demand for recreation
Of the world war debt commission,
which is vigorously opposed on
Capitol hill without regard to
parties. on the ground that it may
mean downward revision or cancel
latiOn.
Rebuffed on Pledge
Meanwhile, Under Secretary Mills
was rebuffed all along the line as he
sought to get Democratic leaders of
the house to sign a round robin as
surance 10 Europe that the Hoover
moratorium would receive congress
sional approval.
Speaker Garner, Chairman Collier
Of the ways and means committee
and Representative Charles r. Crisp
Dem, Ga0, former member of the
debt funding commission, refused to
sign on the dotted line.
1t was then that Mills requested
meeting for today of senate lead
ers, at which he hopes to persuade
them to line up behind Hoover and
Mellon.
The conference requested by Mills
Will have before it two STRANGELY
contrasting documents. One, issued
by the President, assures congress
that he is interested mainly in re-
covery at home, and that the United
states, If it adopts his program for
easing credits, can bet back on solid
ground without regard to what hap
pens in Europe.
The other, issued by Mellon a few
hours after the Hoover pronounce
ment, gave facts and figures for the
necessity of approving the morator-
iln, and even further adjustment
of world debts.
Presidents Stand Defended
Whereas Hoover had stressed the
point that his program aimed to-
ward revival of business and indus
try at home. Mellon launched into
4 defense of the Presidents demand
for further leniency to debtor ma
tons in Europe.
After referring to England's de-
parture from the gold standard
and deprecated currencies in other
countries, Mellon said:
The administration is opposed tn
cancellation. No recommendation
carries such implication. It is.
however, the duty of those in au-
thority to deal with realities. and
there is no escaping the fact that
some OF our debtors can not meet
in fun the payments due us until
there has been substantial
measure of economic recovery.
Position of others so is changed
as 10 call for consideration of their
present situation in the light of
existing circumstances"
Hoover Answers Critics
In discussing the presidential re-
quest for recreation of the World
war debt commission with congress
sonal spokesman. Mills took the
same tack. He pointed out that
, Hoover asked this step only to have
ready machinery to examine pro-
posals for reducing German repa-
rstions which may be made bv the
Young committee operating under
the Bank of International Settle
ments.
Melons pronouncement caused
some surprise, in view of the ap-
parent effort by Hoover to answer
criticism that he was more inter
ested in European recovery than in
solving domestic problems of unem-
ployment and depression.