Evening star., 1931-12-13
SMOOT TO PROPOSE
PAYMENT IN SILVER
FOR FOREIGN DEBTS
White House Conference Re-
suits in Bill Expected to
Ease Money Situation.
KING OPPOSES PLAN
AS INVITING DUMPING
Undersecretary Mills Meets 0ppo-
sition in Seeking Support
for Hoover Plan.
NJ the Assncintnn press

BY the Associated Press.
Rebuffed by congressional leaders on
the proposal to revise war debts. Presi-
dent Hoover last night received a coun-
ter proposal of relief for the interna-
tional debt problem.
Chairman Snoot Of the Senate
Finance Committee, after a lengthy
conference at the White House, an
nounced he would offer a bill tomor-
row to permit foreign nations to pay
their debts in silver rather than gold
as is now required.
His visit followed an earlier confer
ence of congressional leaders with IN
dersecretary of the Treasury Mills, at
which they emphasized their opposition
to the Presidents proposal for revival
Of the War Debt Commission to study
additional European relief. 1t was
forcefully suggested that this be not
pressed lest it endanger the mora
torium.
Help for Silver Situation.
Smoot's proposal was advanced as a
ulChSulG W bllS WOlih oi4FCl
tion as we'll as to aid the foreign ma
tions in meeting their obligations be
coming due after the eintergovernmental
debt holiday expires next July l.
Silver would go up little in price,
he said. and by accepting it, I'VE would
recognize a value to it and show that
we are willing to accept it in payment
of obligations"
Senator King, his Democratic COL
league from Utah, held, however, 1t
was not an effective way to deal with
this problem" and would dump on
the United States a large quantity Of
silver without giving it monetary
status"
The congressional chieftains made it
plain through the day that the ad-
rninistration must act on its own re-
sponsibility regarding debt payments
due America Tuesday. These would be
suspended under the moratorium. The
latter cannot possibly be ratified by
the time the debts are due.
Would Inform Nations.
Mills said that If the question of
these debt payments arose, Secretary
of State Stinson was prepared to In
form the foreign nations they could
not be held in criticism for the fall
ure of Congress to ratify the agree
ment.
Previously House leaders had refused
10 sign any letter to this effect. In
addition they told Mills they would
accept no responsibility for any state
ment respecting the $l25 100000 in
debt payments due the United States
on Tuesday.
Later, Chairman Borah Of the Senate
Foreign Relations Committee, who is
attended the Mills conference, took the
administration to task for not having
called a special session of Congress to
ratify the moratorium.
II am opposed to this conniving at
evasion Of the law" he said. I'VE
ought to have been here and trans
acted this business. We can't suspend
the law by conferences and if the for
eign nations fail to pay on Tuesday
they are technically in default so far
as I am concerned"
However, despite the confusion over
che Tuesday payments, no one on Cap
ttol Hill expected them to be made,
nor was it thought that the technical
default" would have any effect on the
credit Of the foreign powers nor on
ratlncation Of the moratorium.
Reports to President
Late in the day Mills reported to
President Hoover his discussions with
the congressional leaders Upon leav-
ing, he said the administration would
make no formal statement on the
Tuesday payments.
Senator johnson of California, who
is fighting the moratorium, took no ex-
ception yesterday TO whatever course
may be pursued by the foreign gov
ernmentS on their Tuesday payments,
but he did say:
IF the Constitution had been fol-
lowed, If Congress had been called In
session, as it could have been in four
days, the whole matter would have
been disposed Of in a reasonable time
and our people informed There would
now be no occasion for the representa-
tiveS OF the administration frantically
running around the Capitol, to obtain
some leaders consent to a new declara-
tion, carefully concealed from all the
representatives Of the American people" "
over in the House, Representative
Ayres, Democrat, Kansas, proposed
that consideration of the moratorium
be deferred until assurances have been
received from Europe on arms limita-
tions.
To Oppose Revision of Debts.
Representative Rankin, Democrat.
Mississippi, said he would offer an
amendment to the moratorium resolu-
tion declaring against reduction, re-
vision OF cancellation of the debts in
the future
The House Ways and Means Com
mlVee, where the legislation is to be
handled will hold an organization
meeting tomorrow and on Tuesday is
expected TO begin hearings on the
moratorium. Secretary of the Treas
ury Mellon, who was in Europe to help
engineer the debt agreement last Sum
mer, will be one Of its principal wit
nesses. Representative Collier Of Missis-
slppi, chairman Of the Ways and
Means Committee, has expressed an
opinion that his committee would be
ready TO report to the House before
the close Of the week and that con-
sideration Of the moratorium resolution
would be begun.