Evening star., 1931-12-22
ASSA|[S
HOOVER ON DEBTS
Moratorium Action Called
First Step in Dictatorship
in United States.
Continued From First Page

IiicA dIOi llui uldUt NY Lie TIcSlueIlI
should not necessarily feel themselves
bound to approve the agreement which
was finally entered into
In sarcastic vein, the California Sem
ator referred to the action of the Pres
ident in attempting to bring about the
moratorium as "extralegal and extra
judicial"
The President did not permit this
matter to come before the Congress"
said Senator johnson, the poor miser-
able Congress, which only represents
the people. With the happy and
blythe acquiescence 81 Senators and
276 Representatives had given to him,
! the President proceeded with his ne
gotiationS.
Senator Johnson said that by an
agreement entered into with France
on July a treaty was made which, in
effect, made France preferred creditor
Quotes From British Reports.
"If any of you here are jealous Of the
prerogative of a Senator" said Senator
. johnson, think now of the Constitu-
tion of the United States. Congress
could not act in this emergency, Con-
gress could not be called to deal with
| the crisis, and the Executive did the
job"
Senator johnson quoted from reports
of the British parliamentary proceed
| ings to show that the moratorium
agreement which was finally entered
into was new agreement and differ
ent from that first proposed by Presi-
dent Hoover. He quoted from those re-
ports to show that Great Britain, Bel
| GUM, Italy and others would have pre-
! terred to have a suspension of all inter-
! governmental debts, but had been will
| ing to accept the principles laid down
in the Franco American agreement al
| though they have had the effect of i'm
posing 'an additional burden on Ger
many"
| We were asked to forgive our debt
crs, so as to give aid to Germany" Sem
ator johnson continued. "All of these
nations understood that new plan had
been adopted. 1t Is only the Congress
of the United States which seems to be
dealing with the old plan, proposal
upon which you legislated by telegram.
The American people are the only peo-
PIE who do not understand what this
new plan is. France succeeded in main
tanning the provisions of the Young
plan in connection with reparations and
obtained unconditional payments from
Germany"
: Senator johnson pulled fast one on
! Senator Smoot, chairman of the FL
nance Committee The California Sen
! ator began by reading from the Presi-
! dent S moratorium message to Congress
and then interpolated some paragraphs
OF his own in which he made the PreSi-
dent say he did not hold those members
! OF Congress who had agreed by tele-
gram to support his original mora
torium proposal to their pledge. since
! the agreement finally entered into was
very different.
In that agreement France obtained
| the right to collect the unconditional
reparation payment, although 1t was to
permit their use by the Germans. Hav-
| ing read his interpolated paragraphs
| into the Presidents message Senator
johnson said he wished to praise the
! President; that he always wished to
praise the President when he had done
something which Senator johnson con-
| sidered fair and just.
| Turning to Senator Smoot Senator
/ johnson asked if he. too, did not agree
with what the President had said and
| considered it fair and just
Senator Smoot. who had been talking
with Senator Reed of Pennsylvania and
! apparently was not fully cognizant of
/
| agreed that the President had bean
fair and just.
| Bankers Testimony Cited
| But the President never said that"
| said Senator johnson, giving his first
I indication that after all he had not
been quoting from the Presidents
| message.
Senator johnson declared the mora
torium was in the interest of the inter-
national bankers of America instead of
| the American people. He called at
| tention to the testimony given bv in
! ternational bankers before the Senate
Finance Committee showing that they
had fioated billions of dollars of foreign
! bonds in this country, upon the sale OF
which they had made millions of
dollars
| He said the international bankers
| favored the Hoover moratorium on in
tergoyernmental debts so that they
] could get the interest on the foreign
bonds which had been f1oated in this
, country.
The California Senator praised the
House for adding the fifth section TO
the moratorium resolution This is the
section which declares it TO be against
the policy Of the Congress 10 cancel or
reduce the foreign debts due this coun-
| try. He said it was a policy which
should have been formally enunciated
long ago
Il regret as a Republican" said SEN
| ator Johnson, that when this section
was considered in the Ways and Means
Committee Of the House all Of the Re-
publican members of the committee
save one voted against it"
Would Stop Giving.
Senator johnson pictured the United
| States, in view of the Presidents re-
port on the finances Of the country. as
being in worse shape financially than
! the governments of Europe. He said
| that is was time that this country
stopped playing Santa Claus to other
nations The Hoover moratorium. he
said. imposed an additional tax burden
| of $3.50 200, 900 on the American people,
since that was the amount which
would not be received this year from
| our foreign debtors because of the
moratorium.
This, he said, meant an additional
| tax burden of 81 for every man. woman
and child in the country; an additional
| tax burden Of $40 for every family of
Ave, or probably an additional tax bur-
den of $50 for every taxable person
| in the United States. The California
Senator insisted that under present con-
ditions this was a burden which should
| not be placed upon the American peo-
pie and that it was time to stop paying
other peoples debts and to look after
their own financial stability. He
charged that the whole moratorium
plan was in the interest of the interna-
tional bankers, who wished to be able to
| collect their money from abroad, even
though the American people were forced
| to pay heavier taxes to make this pos
Sible.
Senator Nye Of North Dakota criti-
cized the moratorium after Senator
johnson had completed his speech. The
North Dakota Senator proposed an
amendment to the moratorium resolu-
ton authorizing the Federal land banks
to suspend the payments due them by
| the American farmers. Senator Nye