The Washington times., 1932-11-16
EUROPE FACES
/ FAILURE IN
/ { DEBT PLEA
With Congress Unanimity Of
\ Opposition Evident, New
Holiday Seems Doomed
Continued from Page -


stallments due December Is. He
said:
"Save for the British intall-
ment of S95,OOO,OOO. they are
of such relatively small amounts
that there Is little question Of
ability to pay"
Congress is at the boiling point
on the whole subject Of the mora
torium that Mr.. Hoover arranged
10 months ago. The moratorium
has failed to accomplish what
was expected of it, and has, in
fact, done little except provide
an opening wedge for renewed
European pressure for cancella-
ton in whole or in part.
Under these circumstances, con-
gresSional opinion is almost sol
Idly against any further pro-
crastination in the matter Of the
debts.
Feeling Runs High
Republican and Democratic
leaders without regard to factions
or economic theories are agreed
upon this point. 1t will take
some miraculous missionary work
to persuade them otherwise.
The apparent teamwork Of
the European debtors in making
their drive for cancellation. and
the similar tenor of their COM
minicatfons stating their in
ability to pay the December IS
insfallmentS, have only served
to sintensify congressional feel
ing in the matter.
Belgium's payment due next
month amounts only to $2,125,.
600. No one in Washington be.
heves the payment Of so rela-
lively small sum would Shatter
or endanger Belgium's solvency.
The feeling is the same. or
even more so, about Frances $19,-
100000 due on the same date.
France has found 20 times that
amount to spend on armament
without much difficulty.
ESCAPE NAAuSC OAtCU
II it were a matter of tenn
porary financial stringency abroad,
1t was pointed out that the debt
agreements themselves provide
for a means of relief. Each of
the agreements contains an
escape clause, whereby a debtor
nation by 80 days notice to the
Treasury can postpone its prin-
cipal payments for two years.
But instead of availing them
selves of that clause, the debtors
chose instead to wait until a bare
month before payment was due
and then make common cause Of
their drive for cancellation.
1t doesn't sit well with Congress
Especially at time when the
q. s. Treasury deficit is mount
ing toward the billion mark for
the current fiscal year, and Con-
greSS is confronted with the un-
welcome task of finding addi.
tional pockets Of the taxpayer to
explore.
Sympathy for British
There does exist some SYM
pathy for the British, whose due
payment on December IS is some
sos, 100000. This sympathy has
been largely generated by Britain'S
whole record in meeting the debt
situation from the outset.
She was the first of the debtors
to fund her debt, and she settled
on terms considerably harsher
than the terms later granted to
France, Italy, Belgium and the
others.
Also. since funding her debt.
Great Britain has paid $202, ,000,-
900 in principal, and some $1,149,-
100000 in interest, amounting in
all to about a third of her debt.
No other debtor has come near
duplicating that performance. De
spite the enormous sums she real
lied from Germany in repara-
tions, France on her total debt
Of $3,863, 100000 has paid but
$161 ,000,0 900 in principal and $685.
900, 900 in interest.
Rainey Voices Protest
The expectation prevails that
as soon as possible, President
Hoover will call a conference Of
Congressional leaders to canvas
the whole situation. He will find
them adamant, without regard to
party.
II am unalterabIy and always
opposed to changing the debt
agreements" said Representa-
tive Henry T. Rainey. Demo
cratic leader Of the House. '"The
moratorium is silly. and it has
not . chance of being extended
by this or any other Congress"
There were similar expressions,
both public and private, from Re.
publicanS as well as Democratic
leaders.
Awaits Albany Phone Call
Meanwhile the promised tele.
phone call from Albany will be
awaited advising Mr.. Hoover
when PreSident-elect Roosevelt
will meet with him at the White
House for an exchange of views
on debts. disarmament and world
economics.
Newspaper dispatches from the
New York State House indicated
that the Governors cold was
improved greatly, and Hoover
aides were hopeful the confer
ence could be arranged for Mon.
day, Tuesday, or Wednesday OF
.pext week, ssk,----,,---,--4--,--.---.--.