Evening star., 1931-12-17
HOUSE COMMITTEE
FA|LS TO AGREE ON
MORATORIUM PLAN
Collier Hopes to Report Bill
for Debate Tomorrow.
Approval Expected.
McFADDE-! ASKS PROBE
OF FEDERAL RESERVE
H. P. Dawson Testifes Britain,
France and Italy Had No Money
on Deposit December Is.
BY the Associated Press

BY the Associated Press.
Two hours study of the language by
which it would measure its committal
to postpone payment of foreign debts
for one year failed today to produce
measure satisfactory to the House
Ways and Means Committee.
1t pondered the matter behind closed
doors. aided by Undersecretary Mills OF
the Treasury, who worked with Presi-
dent Hoover on the original plans for
the moratorium.
The committee recessed at noon with
the language of its measure unagreed
upon, but with its chairman predict
ing agreement later in the day.
Its last witness, Henry P. Dawson
of J. P. Morgan & Co, testified that
England, France and Italy did not
have on deposit on December IS the
debt inStallment due on that date.
Mills Called In.
After closing its hearings the COM
mlttee summoned Undersecretary Mills.
Collier said Mills was summoned to
clarity further Davison'S testimony and
made the following statements:
"InStallmentS for 1929 and 1880 were
paid by Great Britain and France
through J. P Morgan Co. TO the Fed
eral Reserve Bank of New York for the
account Of the United States Treasury
and by Italy through Kidder- Peabody
& Co., in the same way
Collier explained Mills was called to
make this statement because Dawson
had been unable to inform the COM
mittee fully regarding the practice Of
past years.
Mills also stated, he said, that the
Treasury had no intlmation they were
going to pay, while in the past notice
had always been given in advance"
Both Collier and Democratic Leader
Rainey said they expected the mora
torium to be taken up in the House
tomorrow.
Two Countries Problem.
One CT the problems the committee
must decide upon is the language to be
adopted to take care of Austria and
Greece, whose methods of payments
differ from those Of the other IA
nations.
Meanwhile Representative McFadden
of Pennsylvania, the Republican who
two days ago denounced President Hoo
yer for his moratorium action, intro
duced bill calling for congressional
investigation of the Federal Reserve
Board and banks.
The measure called especially for a
study Of the activities of the Federal
Reserve with respect to foreign banks
and foreign central banks. their open
market operations and acceptance busi-
ness, and their connection with the
American Acceptance Council"
Foreign financing operations of the
system also would be investigated.
In introducing the resolution, Nc
Fadden said Germany had concealed
the correct amount of her financial
reserve to promote the moratorium.
Says Germany Can Pay.
Il desire to call attention to the
fact that the Young Plan Committee,
in session at Basel, Switzerland, study
ing Germanys capacity to pay, has
made report to the effect that Berlin
can pay all the annuities under the
Young plan" McFadden said.
This information is of the greatest
Importance as supporting charges I
have made as regards the part the
German-American and their associated
banks and bankers have taken in bring
ing about the Hoover moratorium.
1t is now apparent because of this
disclosure of Germany's capacity to pay
that there was a deliberate attempt TO
conceal the correct amount of their re-
serve and short-time acceptance debts.
Il point to the fact that the first
Wiggin report underestimate almost so
per cent the acceptance credits that
Germany owed.
This report of Germany's capacity
to pay which was just disclosed is con-
firmatiOn of the reason why Germany
did not proceed under The Young plan
and use this machinery which was ere
ated under the law to secure her mora
torium.
Apparently they were afraid of the
disclosures which have now been made
by this committee operating under the
Young law.
Secured Presidents Aid.
1T is quite fair to presume that the
New York international bankers,
headed by Mr. Wiggin Of the Chase
National Bank and Mr.. F. A. Goodhue
of the International Acceptance Bank,
owned and controlled by Paul M. War
burg, were instrumental not only in
the negotiations with the present Ger
man government and the bankers and
their committees relative to securing
the priority for private debts over rep
aratlons but were also factor IN Sc
curing the assistance of the President
in securing the moratorium.
1T is we'll known fact that the In
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