Evening star., 1931-12-18

and Means Committee late yesterday
reported favorably to the House a reso-
luton 10 make effective the Hoover
interRovernmental debt moratorium.
Before ordering the favorable report
on the resolution, which has been in
troduced by Representative Collier of
Mississippi, Democratic chairman of
the committee at the request of the
Treasury Department. the committee
adopted an amendment declaring 1t
against the policy of Congress that any
Of the Indebtedness of foreign countries
should be in any manner Cancelled
or reduced"
The amendment. offered by Repre-
sentative Ragon of Arkansas. Democrat
was adopted by vote OF Is to 8. All
the Democratic members of the COM
mittee were recorded in favor Of the
amendment and one Republican. Crow
ther of New York. The nine votes
cast against the amendment were Re-
publican.
-Four Democrats voted against report
ing the resolution. and it is expected
they will vote against its passage in the
House They were Eslick of Tennessee,
Sanders of Texas. Vinson of Kentucky
and Dickinson of Missouri While Repre-
sentative Rainey of Illinois. the Demo-
cratic floor leader. voted in committee
to report out the resolution 1t IS under
stood he will cast his vote against it in
the House
Representative Collier of Mississippi
prepared a written report for the ma
jority and Representative Sanders for
the minority.
Seek Disposal This Week
Mr.. Rainey said it was the plan to
bring the resolution up in the House
today and to dispose of it if possible
before the end of the week In any
event the Democrats intend to keep the
resolution before the House until it is
disposed Of.
So the first step to pass the Hoover
moratorium legislation, demanded by
the President in a message to Con-
greSs, was taken. The President asked
for its passage by December Is. the
date on which payments of interest to
this country by foreign debtor nations
was due, amounting to $l25.000. 900
The Democratic leadership of the
House replied that such speed was i'm
possible.
AS soon as the resolution passes the
House, which it is expected to do by
large vote, it will go to the Senate,
where attacks on the measure will be
made by Senator Hiram johnson of
California, Senator McKellar of Ten
nessee and probably some other Sena-
tors. The eventual passage Of the res
olution. however, is expected.
Republican members of the commit
tee said that they had opposed the
Ragon amendment because they did
not believe it had any place in the
resolution. They admitted that the
Treasury Department had been opposed
to it, too.
1t is not likely. however, that any
effort will be made to make the Ragon
amendment a party issue. it was said.
The President has already declared
himself opposed to any cancellation of
the foreign debts growing out Of the
World War
The Ragon amendment adds new
section to the resolution and reads as
follows:
Section Sit is hereby expressly de-
clared to be against the policy OF Con-
gress that any of the Indebtedness OF
foreign countries to the United States
should be in any manner Cancelled or
reduced. and nothing in this Joint res
olution shall be construed as indicating
to give favorable consideration at any
time to a change in the policy hereby
declared"
The amendment was interpreted as
blow to any further proposals for debt
postponement, although it mentioned
only debt cancellation or reduction.
President Hoover recommended in his
recent message to Congress the re-
establishment of the World War For
eign Debt Commission, so that it would
be prepared to go into the question of
debt revision if it became necessary.
The action of the committee today was
notice to the Executive that the Ways
and Means Committee of the House
was hostile to such plan.
Just before the committee took ac-
ton on the resolution Secretary of State
Stimson was recalled to give the COM
mitteemen further information.