Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-20
MORATORIUM seen
POSSIBLE: REMEDY
IN GERMAN CRISIS
Reduction or Cancellation Of
War Debts Ruled Out
by President.
MORE LEADERS CALLED
IN FOR CONFERENCES
Issuance Of Comprehensive State
ment on Whole Question Con.
sidered by Hoover.
~ the Associated Press.

By the Associated Press.
A plan for O world holiday on war
debts and PREPARATIONS for one or two
years has become uppermost In Presi-
dent Hoover's conferences for relief Of
the European financial situation.
Several other possible remedies also
were being discussed today. however. as
the President continued meeting with
members Of Congress of both parties.
He has imposed strict injunction Of
silence on the proposals he has In mind
to strengthen Germany's position and
to prevent critical worldwide
economic unsettlement.
Reduction or cancellation Of the war
debts has been ruled out BY the Presi-
dent as one of the remedies because OF
the opposition to It IN Congress. This
leaves the moratorium plan as the next
available remedy and upon this subject
the conferences are now conferred.
The talks with members OF Congress
will continue into next week. Chair
man Smoot Of the Senate>Fanance COM
mittee is being awaited.
Lindsay ut Treasury.
The British Ambassador, Sir Ronald
Lindsay. called at the Treasury during
the morning and conferred with Under
secretary Mills, acting chief during
Melons absence in Europe.
Neither Sir Ronald nor Mills would
comment on their talk, but after the
Ambassador left, Mills returned TO the
White House for further conferences.
Mr.. Hoover talked with several
Senators last night and today over long
distance telephone. Another who called
at the White House during the day was
Senator Walsh, Democrat, Massa-
chusettS.
1t was almost certain the President
would forego his usual weekend trip,
to his mountain camp In Virginia and
carry on his discussions here.
1ne President also summoned during
the morning Secretary Lamont and Sec
rotary HYDE. Neither Of the cabinet
ofhcers would comment.
Senator Walsh, after his conference
with the President, said that before
being invited to the White House he
had given out q statement urging that
''the good offices Of our country be used
to the limit in Strengthening out the
Teparations problem"
Opposes Cancellation.
at can only say this" ne added.
"Since my conference with the Presi-
dent have not changed my mind. In
fact, found some Of his ideas were
my own"
walsh said that he did not zee any
"exact or immediate relationship be-
tween war debts and reparations," but
that this country might well consider
poStponement or modification Of pay
ments at this time.
81 have never favored cancellation
and see no reason for changing that
position" ne said, but in these times
can see reasons for postponement OF
modification"
Senator Fletcher of Florida after
talking with the President was con-
WINGED that Mr.. Hoover,s plans were the
soundeSt that could be brought forth ut
this time.
"I am certain" he said, that they
win meet with support In Congress"
One Of the callers at the presidential
o6lces today was Senator Byrnes, Demo-
Graf, South Carolina.
Meanwhile, the President was said al
the White House today to be contem-
plating early issuance Of o compre.
hensive statement on the whole Ques-
ton.
Before his usual working hour to-
O6J LIlG AAllE4 GACCQbAVC AA10 ~ 1AAo "a
fice Assistant Secretary Of State Castle
and Undersecretary of the Treasury
Mills. Soon after he conferred with
Senator AShurst, Democrat, Of Arizona
who refused to comment upon leaving
the Executive OfnceS. AShurSt was fol.
lowed by Representative Treadway, Re-
publican, of Massachusetts,.
Representative TilSon of Connecticut
the House Republican leader, who took
part In the beginning Of the discussion
yesterday, spent last night at the Whit
House.
The President, in view OF the de-
velopments concerning the German
situation, had no formal engagements
for the day. As q general rule there
are from six to dozen regular callers
Leaders Are Summoned.
A number Of Congressional leaders
it was said ct the White House, have
been called to Warrington by the Presi-
dent. The names Of the men were moi
made public.
Representative Treadway, who tool
part In 'today's discussions, Is ranking
Republican member Of the House Way,
and Means Committee which deals witt
foreign and domestic finances. Chair
man Hawley Of that committee Is ct hi
home IN Oregon.
While President Hoover stressed yes
terday that nothing concrete had beer
developed thus far In his conference
with congressional leaders, the genera
| impression among close observer
| pointed to q probable moratorium o
Q year or two in foreign debt pay
ments to this country. conditioned
| however, on suspension Of reparation
payments by Germany to America
| debtors.
Extra Session Held Unneeded.
In this connection, the question wa
raised whether debt payments could b
suspended without congressional actor
to an extent that would bring real III
| to Europe.
some oficials said principal payment
could be suspended without callinl
Congress into special session, but tina
interest payments could not, and tina
| the latter were materially larger thai
the principal returns.
The President Is opposed TO an extFI
| session, hence observers feel whateve
steps are taken win not require sum
moning Of the National Legislature
The new Congress does not convene lln
til December.
MELONS stand Recalled.
Speculation over possible debt re
vision recalled Secretary Melons I'm
qualified opposition TO such . course 2
expressed In o letter he wrote \
March, 1927.
IN Il he expressed the opinion tina
such q step would be "calculated :
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