The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-17
HOUSE DEBATE
ON WAR DEBTS
OPENS FRIDAY
Leaders Hope Action Will
Be Finished on Morator-
ium by Saturday Night.
M'FADDEN FIGHTS ON
Militant Pennsylvania Asks
Quiz on Federal Reserve
Foreign Financing.
By United Press

WASHINGTON, Dec. 17.-Ratifi-
cation of the Hoover war debt
moratorium will be taken up in the
house Friday, Democratic Floor
Leader Rainey announced today.
Leaders hope house action will be
completed by Saturday night.
The ways and means committee,
in a two-hour closed session, failed
to complete its report on the mora
forum, and another meeting was
called for 2 p. m. Chairman Collier
said he expected a report to the
house would be drafted at that time.
Undersecretary of Treasury Og-
den Mills was called back by the
committee today and questioned for
an hour. Collier said Mills had been
asked to clear up certain matters
about which the committee ques-
toned Henry P. Dawson of j. P.
Morgan 81 Co., fiscal agents for
Great Britain, France and Italy.
Funds Not Deposited
Davidson, in his testimony, de-
MED reports that Great Britain had
deposited funds and stood ready to
pay the Dec. Is installment on its
debt to the United States, post
poned under the moratorium.
Representative McFadden (Rep.,
Pa, who has charged the mora
forum was designed to protect pri-
vate bankers at the expense of the
United States government, today
asked an investigation of the fed
eral reserve systems connection
with foreign financing.
He introduced in the house a
resolution calling on the banking
committee to investigate the federal
reserve banks activities with re-
Spect to foreign banks and foreign
central banks; their open market
operations and acceptance business,
and their connection with the
American Acceptance Council"
1t also would go into their col
liberation with other banks (do-
nestle and foreign in the opera
tons of such banks in foreign
financing"
Banking Inquiry to Open
The senate finance committee Fri
day will begin an inquiry into OPP
erationS of international banks in
Wall Street. The investigation pro-
posed by McFadden would concern
the Federal Reserve systems part
in the activities of these banks.
McFadden renewed his attack on
President Hoover, saying that a re-
ported finding of financial experts
at Basic, Switzerland, that Ger
many was able to pay unconditional
reparations under the Young plan,
supported his argument that the
moratorium was put over" by in
ternational bankers to protect their
own stake in Germany.
The house voted approval of a
100000, 900 appropriation for the
veterans bureau, to be used in pay
ment of veterans loan, approved by
the last session of congress.
Million Is Borrowed
World war veterans borrowed
$1,227,937 on their adjusted COM
penSation certificates, of which 65
per cent was used for personal and
family needs, according to testi-
mony before|the house appropria-
tons committee.
The statistics were given by Ad-
ministrator Frank I. Hines, who
based his IS per cent figure on an
estimate compiled from sources
favorable to the veteran"
Hines said he anticipated heavy
demand for further loans this win
ter because of the economic stu
alton. The bonus loan bill increased
the treasury deficit only about $112,-
900 900, he said.
He estimated, however, that full
payment of the certificates would
cost $2,6O0,000,000.
Manchurian Notes Requested
The senate requested Secretary
of State StimSon to submit to it
all his notes and communications
with foreign governments on the
subject of Manchuria.
The johnson resolution expressing
this request was adopted unani-
mously.
The house passed an appropria-
ton of $4,000 to establish addi-
tional federal employment offices
under the department of labor. Sec
rotary of Labor Doak had requested
an appropriation of $16S,000.
The house banking and currency
committee voted to report favor
ably a bill to provide 100000, 00C
additional capital for the farm
loan board.
1t also decided to proceed at
once with consideration of the bill
to provide $5OO,OOO,OOO capital fol