Evening star., 1932-11-20

peatedly that the question of German
reparationS must be entirely divorced
from any American consideration OF
the war debt question.
Senator Watson, Republican, of In
diana, one of the IL congressional lead
ers called by the President to his parley
on debts next Wednesday. said in In
dianapolis yesterday he could count only
four avenues cut of the debt tangle-a
three-year moratorium, revival of the
debt commission, cancellation and re-
pudiation.
Reputation, he said, "has been
discussed in European circles. l doubt,
however. that they will go that far.
France could pay if she would, for she
has the worlds largest gold reserve.
She has leagued the other smaller ma
tions into the present policy Of delay.
England wishes to pay and Will pay II
she can"
Secretary Mills said both he and the
President will be all prepped up on
debt matters by next Tuesday. He will
participate in the parley with Mr..
Roosevelt.
With insurgent Republicans and sew
eral Democratic leaders denouncing the
administration as having made made
uuate provision fcr the needy in the
present bu6get. there is certain to be
agitation for increased public relief
appropriations in the coming session.
These would tend to throw out of bal
ance any budget presented by President
Hoover.
Beer Tax Is Dismissed.
President Hoover is not expected to
recommend the legaliZation of beer, and
the uncertainty whether he would veto
such legislation has moved most con-
gressional leaGers to dismiss a beer
tax ASIA source of revenue for the re-
mainde- of this year The wet leaders
had hoped to bring back beer by Janu
ary l. The new Congress is almost
certain to legalize it, but it does not
come into effect until Mar1n 4 and
President-elect Roosevelt has yet to say
he will call it in special session.
L. H. Parker, expert of the congress
sinoal Internal Revenue Committee
estimates that the revival of the bee.
tax should yield S15O,000,0O0 in The
six months to the end of the year,
should Congress legalize the beverage
by January /.
The expenditures for the air services
of the Army, Navy and Commerce De-
partmentS are to be reduced. While
no further major cuts are contemplated
i'll the Army and Navy. there is a plan
to extend the rotating method of oper-
ating types of naval vessels. BY this
system certain percentage of ships
Is constantly tied up and inactive, re-
quiring a minimum of fuel, personnel
and upkeep cost.
The President also is considered pre-
pared to point out that much greater
economies, possibly amounting to more
than S300,000,00 may be effected by
changing the statutory requirements for
war veterans relief.
No Veterans Fund Cuts.
As presented to Congress the Presi-
dents budget estimates will provide no
cuts in veterans expenditures now
provided by law. But a substantial
savings in the existing outlay, it is
understood. will be recommended, prob
ably on the basis of the suggestions Of
the joint Veterans Committee of the
House and Senate created by the
economy act and directed to report
to Congress by January /. One esti-
mate of savings in this quarter, said
to find favor at the White House, is as
high as 100000 000. 1t is based on
curtailment of non-service disability
payments and corrections of existing
inequalities in payments. It would
bring the budgetary savings to the ST.
600, ,000,0 900 mark if enacted in the short
session and assuming Congress accepted
the Presidents budget. Recommends
ton for saving of approximately S50,-
5000 was made to the Economy Com
mittees at the last session, but all pro-
visions for cuts in funds of the Vet
erans' Administration were eliminated
from the economy measure before en-
actment.
Representative John McDuffie, Demo-
crat, of Alabama, who headed the House
Economy Committee. will act as chair
man of the joint Veterans ComIzittee
and has promised early hearings to pre-
pare the report.