Evening star., 1931-12-12
SENATE LEADERS
ACCEDE TO DELAY
OF DEBT PAYMENTS
Undersecretary Mills Obtains
Understanding in View of
Pending Moratorium.
DEMOCRATS AGREE
ISSUE NOT PARTISAN
Secretary Mellon Backs President
as Reed Joins Watson in
Opposition.
BY the Associated Press.

By the Associated Press
AN informal understanding was
reached today between the adninistra-
tlon and Senate leaders that foreign
governments would not be considered ar
lauls II their war debt payments due
next Tuesday are not paid, pending
formal ratification of the one-vear
moratorium suspending these payments.
undersecretary Of the Treasury Mills
discussed the situation with leaders of
ooth parties in the Senate. He said
Secretary Of State Stimson would deal
with the foreign governments respect
ing their payments, but does not expect
the Secretary to make any formal state
ment on the question.
Mills was informed the legislation
ratifying the year debt holiday, which
went into effect last July l, can not be
enacted by Tuesday.
i discussed the form of a statement
70 be made to these foreign govern
ments," said Mills. "I asked no agree
ment. came more for the purpose NJ
getting information and giving infor-
nation"
Not Party Question.
Meanwhile, Representative Rainey
Democratic leader, promised "the DEM
ocrats will not make the moratorium a
party question"
>. Ralney said he would vote against
1t, but the Democrats planned tn iaaye
TO the individual members as to
Chelr own position en- the matter.
opposition in both Republican, and
OenocraGlc ranks to the moratorium
was seen by the Illinois Democrat He
SAID, however, he expected the House
% act on 1t and send 1t to the Senate
before the Christmas holidays.
6eIore going into the conference with
tne Senate leaders, Mr. Mills said he
would seek to avoid discussion of
the controversy raging between Presi-
presidential proposal for revision cf
war debts after the expiration of the
moratorium.
Talking of the controversy over debt
revision, he said:
1T is a shcrt Winter day and 7
don't think we will have time to get
onto that subject"
Mellon Backs Hoover.
The President is throwing every
energy into the intense struggle to
bring the hostile Congress around to
revision Of the European war debts.
The spectacular outburst against fur
ther relief for Europe at the expense of
this country, joined in by administra-
ton stalwarts as well as Democratic
leaders, even brought into action the
usually silent Secretary of the Treasury
Mellon. He picked up the Hoover cause
last night with an answer as severe as
any he has made in his II years of
exchanges with Congress.
What intelligent business man or
banker" demanded the Treasury head,
would blindly refuse to investigate or
to consider the altered circumstances
of debtor whose unsecured obligation
he held?"
1t is one of the most spectacular
contests between the White House and
Congress that has developed in years.
1t finds not only the President and his
leaders at odds, but, for the first time,
brings break between Mr.. Mellon and
Senator Reed of Pennsylvania, his in
innate.
Reed, high on the Finance Commit
tee, last night Joined Republican Lead
er Watson in fiat opposition to the
Hoover proposal for recreation OF the
War Debt Commission
Mellon Answers Critics.
1.-THE administration is opposed to
cancellation" was the opening shot of
Secretary Mellon to the congressional
critics, who said further debt revision
meant cancellation. mo recommen-
dation made carries any such implica-
ton"
The Secretary then pointed to Great
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