Evening star., 1931-12-08
|B|G FOREIGN LOANS
HELD SLUMP CAUSE
Representative McFadden
Says Source of U. S. Slump
Is Outside of Country.
BY HOWARD M. BAGGETT,
staff Correspondent Of The Star.

CHEVY CHASE, Md, December B.
The principal causes of the present In
dustrial stagnation have come from
without the United States and has
been caused by the loan of too much
money abroad, Representative Louis T.
McFadoen, chairman of the House
Banking and Currency Committee, told
a community gathering at the Bethes-
da-Chevy Chase High School last night
at meeting sponsored by the Bethesda
Chamber of Commerce.
Speaking on the subject war Debts
and Preparations" Mr.. McFadden urged
that these two matters be kept sep
arate and distinct in the minds of the
people. He advocated the full payment
of war debts owed the United States
by European nations.
Reciting list of 80 community prof.
ects in which the Bethesda chamber
had an active part, Merle Thorpe, edi-
tor of Nations Business magazine, paid
tribute to the community teamwork in
talk preceding his introduction OF Mr..
McFadden.
Draws Aside Curtain.
Drawing aside what he called cur
tain which since the armistice in 1918
has been held between the American
psople and the true facts by the su-
preme war council of the allies, Repre-
sentative McFadden revealed what he
termed a scheme whereby the European
nations seek to have the United States
pay them the German reparations in
cash in return for the right to collect
from Germany over a period OF half a
century.
The London ultimatum, the Dawes
plan and now the Young plan, Repre-
signed to achieve this end by the SELL
ing of German municipal and indus
trial bonds In the United States.
The United States, Mr.. McFadden
declared, is rich and fertile land,
possessing almost every natural re-
source and with an intelligent and en-
ergetic population which has suffered
no epidemic Of disease or prostrating
disaster Of nature and which Is not
harassed by wars or fears of waIS,
capable Of living and living well, with
no need Of dependence on foreigners.
What, then, has suddenly brought
this industrial paralysis throughout the
land?" he asked. "A belated admission
was made by one of our leading bank
ers, who appeared before a congress
sional committee recently, that we have
loaned too much money abroad, and
that this is the major cause Of the in
dustrial stagnation. So it is causes com.
ing from without and not those arising
from within that we must examine Il
we would understand what has hap
pened and know how to guard agains,
it In the future" he said.
President Wilson, Mr.. McFadder
stated, was the victim Of cleve,
camoufage Of the real intentions of ths
allied nations to suck Germany dry ant
to make the United States pay the IL.
legitimate war debt of Germany to tn,
allies and then collect from German,
over half century.
Charges Treaty Violated.
He charged that the allied suprem,
war council had deliberately thrust asid,
the preliminary treaty agreements witt
Germany entered into at the time O
the armistice and had forced that ma
ton to agree to 'bloodsucker" term
through food blockade enforced fo
six months after the armistice wal
signed and OF which President Wilson
was kept in ignorance. The American
members Of the Preparations Commits
sion had deliberately failed to stans
firm for the limitation Of reparation!
principles of President Wilson and hae
ignored his orders to make public hi
stand II they could not obtain Euro
pean acquiescence, he said.
Mr.. Thorpe in his talk stated tina
what the people Of the Bethesda section
want is residential district second tt
none. The Bethesda Chamber, he said
has done as much in its field as am
organization know anything about h,
said.
The meeting was presided over by Ed
ward H. Jones, second vice president o.
the chamber. A varied musical program
was presented. Following the meetin,
the approximately 300 persons WIKI
were present were served a buffet sup.
per In the basement of the high schoo
building.