The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-06-20
u. s. MOVES
FOR Big CUT
IN WAR DEBTS
Hoover, Leaders Of Both
Parties Agree to Aid
Stricken Germany.
SCAN POSSIBLE STEPS
British Payments May Be
Whitfield Down First,
Advisors Hint.
JOSEPH II. BAIRD
United Press STAFF Correspondent

WASHINGTON, June 2O.-The
administration was engaged today
In major effort TO help Germany
out Of the economic mire into which
the World war dragged this coun-
try's former enemy.
President Hoover is seeking WAYS
to save Germany from the dangers
OF bankruptcy and political tur-
mol, and at the same time to slim
ulate business at home by unclog-
ging the channels of world trade.
What he will do is not yet known
definitely, but fundamental changes
In the wars heritage OF debts and
separations may result from a series
OF White House conferences that
the President is holding.
Conference Again
AS Mr.. Hoover summoned admin
istrative and congressional advisors
to the White House again today,
two possible courses of action were
advised by informed officials
First, and apparently more i'm
portant, Germany might be aided
indirectly by a readjustment of the
British debt to the United States.
Britain long has said she would
scale down German payments to
her in proportion as her own debts
were reduced. 1t is understood that
Andrew Mellon, treasury secretary,
now in Europe, already has dis
cussed this possible action with
Prime Minister Macdonald and
Montagu Norman, governor of the
Bank of England.
Second, the federal reserve banks
might establish substantial credit
here for Germany to tide the Reich
over its present financial crisis.
Statement Is Issued
Mr.. Hoover began his conferences
on the economic situation Friday,
with his efforts particularly direct
ed to strengthening the situation
In Germany" To his Office came a
succession of leading government
officials and congressional leaders
of both parties
At the close of the busy day, the
President issued this statement.
Since my return from the CEN
trail west Thursday. l have con-
ferred with leaders of both political
parties who are present in Wash
ington with respect to certain steps
which we might take to assist in
economic recovery both here and
abroad.
These conversations have been
directed particularly to strengthen
ing the situation in Germany No
definite plans or conclusions have
yet been arrived at, but the response
which I have met from the leaders
of both parties is most gratifying
ANY statement Of any plan or
method is wholly speculative and
is not warranted by the facts
British Debt Scanned
From one high quarter, however,
1t was learned that readjustment of
Great Britain's debt was one OF
the proposals being given serious
consideration.
Great Britain funded its debts to
the United States earlier-and on
less favorable terms-than any
other European power. The final
debt agreement called on Britain
to pay $4,426, 100000 as compared
with SS,S65,O0o COO from France.
So high is the British interest
rate that of its payments up to
Nov. Is, 1890, SLOT 100000 went for
interest and only $174000,000 could
be applied to reducing the debt.
Thus, it is pointed out, the
United States could save Britain
millions of dollars each year merely
by cutting the interest rate on it's
loan, leaving the principal I'M
touched. Some observers believe
popular objection to reducing inter
est would be far less than to lower
49,