The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-06-25
MELLON SENT
TO PARIS FOR
DEBT Farley
Secretary of Treasury to
Ask French to ReIent
on Preparations.
HUGE LOAN FOR BERLIN
$100,000,00O Credit Ex-
tended to ReiChSbank
During Money Crisis.
BY RAYMOND CLAPPER
United Press stan Corresnondent

WASHINGTON, June 25.-Pres-
tdent Hoover today rested the fate
Of his r1omentous war debt holiday
plan on the shoulders of Andrew
w. Mellon, secretary Of the treasury.
Mellon reached Paris late today
from London to negotiate with
France, in an effort to persuade her
to relent from a stubborn desire to
compel Germany to continue partial
reparations payments during the
year in which President Hoover
proposes all payments be suspended.
At the same time, the United
States federal reserve board joined
with the Bank of England, the Bank
of France and the Bank of Inter
national Settlements at Basic,
SWitzland, in extending credit of
800 100000 to the strained German
Reichsbank. The credit will be
effective Friday, the American share
being supplied by the New York
Federal Reserve bank.
Only One Out of Line
OF the major creditor powers in
volved in the Hoover moratorium
plan, only France remains to be
brought into line England and
italy are whole heartedly support
ing the proposal.
For the critical task of negotiat-
ing with France, Mr.. Hoover aban-
doned the conventional channels OF
diplomacy and chose his secretary
of the treaSury-cne of the most
famous and richest industrialists in
the world, who, until he entered the
cabinet ten years ago, at the age OF
66. was a stranger to the realm OF
public affairs.
The Presidents decision to send
secretary Mellon to Paris was re-
vealed after the French reply to the
American proposal was discussed at
the White House Wednesday by Mr..
Hoover, Ogden L. Mills, acting sec
rotary Of the treasury, and Score
tary of State Henry L. Stinlson. The
conference was the third that the
three held during the day and ex-
tended far into the dinner hour.
Insists ON Payment
The French note was understood
to follow closely the lines forecast
earlier from Paris. 1t conveyed
Frances insistence that Germany
live up to the letter Of the Young
plan by continuing to pay the non
postponable part of her reparations
into the international bank.
These funds later could be turned
to Germany's assistance, the French
we're understood to suggest. This
suggestion is not acceptable to the
United States.
Text of the French note will not
be published until after it has been
discussed in the parliament at Paris,
Friday.
The tenor of the French reply was
not unexpected, and administration
leaders continued to voice confidence
that Paris would swing into line.
Secretary Stimson said he was very
optimistic" The tenseness in Of
fetal quarters. the long and numer-
Gus conferences here, and the de-
cision to send Secretary Mellon to
confer with the French gave
evidence, however. that the situation
has reached a critical point.
Belgium Given Copy
Copies of the French reply to
Washington have been dispatched
to London and Brussels. The French
believe that Belgium's acceptance
OF Hoover'S proposal will be based
on a reservation similar to that
made by France-namely that the
unconditional annuities from Ger
many be paid, regardless Of any
other PREPARATIONS or war debts holi-
day.
1t was announced today that Sec
rotary of State Stimson planned to
sail for Italy Saturday aboard the
Conte Grand His destination is
Naples.
Stimson announced his plans for
the summer some time ago as pri-
nlarily a vacation trip. Subsequent
development of the Hoover debt
moratorium program give Stimson'S
movements great international i'm
portance, but he will not reach Ia
Piles until about July Z, a week
after the date tentatively set by the
administration for conSumnation Of
an all-round debt postponement
agreement.
Stimson's decision to go to Eu-
rope now suggested to some observ-
ers here that the negotiations look
ing toward acceptance of the Hoo
yer proposal are progressing salts
factorily. 1t is not believed the
President would approve his depar-
ture we're not prospects for accept
&. ance of the debt postponement plan
optimistic.