Evening star., 1932-12-19
CREATION Of DEBT
AGENCY INDICATED
Early Action Declared Likely
in Special Message
to Congress.
Continued From First Page.)

Continued From First Page)
81 100000; Finland, $1s6.235: Latvia,
$l48,852, and Li.huania $92, 1886.
French May Be Eligible.
If present hopes that France. too,
will pay her Sl9,261 ,432 are realized,
she, too, doubtless would be eligible
Defaulting nations from which no in
dications Of reconsideration have come
are:
Belgium, owing $2,l25.000; Poland,
$4.427 $50; Hungary, $4O,729, and Es-
tonia, $356,37O.
The situat ion confronting the pres
ent administration. as outlined In quar-
ters close to the President, Is that Mr..
Hoover feels himself at loss to take
the preparatory steps necessary with
out some help from the new admins
traGon.
1t was pointed out that diplomatic
negotiations of the character involved
in the debt, Economic Conference and
disarmament problems, usually require
weeks Of preliminary work.
With respect TO the Economic Con-
ference, In particular. the President was
said to feel that unless the men who
are to sit at the conference table are
appointed and given an opportunity to
prepare before March 4. the gathering
might have to be postponed until late
next Summer
Situation Declared Urgent.
This message. in its reference to the
World Economic Conference, reiterated
that any actual conclusions reached
must remain as heretofore matters be-
tween individual governments. The
suggestion was, however. that inasmuch
as these debts could not be entirely
divorced from the general economic
situation, q closer coordination OF
American viewpoint on the whole SUBJ
ject was necessary.
The situation IS one Of such ur-
gency," the message concluded, that
we require national solidarity and ma
tional cooperation II We are to serve
the welfare Of the American people and.
indeed, If We are to conquer the forces
which today threaten the very founda-
tions of civilization
As soon as the message was received
in the Senate, Senator Vandenberg,
Republican, of Michigan. asked for a
quorum call to bring the Senate mem
bership TO the Chamber for the reading.
The document was read by clerk to
q silent and attentive gathering within
a few minutes. but in the House of Rep
resentatives it was put aside temporarily
before reading.
Decision to dispatch the message
without delay was made at a White
House conference through the morning
between the President and Secretaries
StinlSon and Mills
Mr.. Hoover informed congressional
leaders of his decision. and full dis
cuSsion Of the debt situation impended
on Capitol Hill
Final preparation of the message
conceded with announcement 70 the
British Parliament by Stanley Baldwin
that the United States had agreed TO
undertake with Great Britain a joint
examination of the debt structure.
StimSon went to the White House be-
fore 9 am. and conferred with Mr..
Hoover alone for more than two hours.
Secretary Mills joined the pair shortly
after IL am. and remained for more
than an hour.
While Stimson and Mills declined to
comment on Baldwin's statement in
Parliament it was recalled that the last
note to Great Britain stated clearly
the President was prepared through
whatever agency may seem appropriate
in cooperation with your government
to survey the entire situation
This statement was in the note hur-
riedly drafted by Mills and Stimson
Sunday before last and handed to Sir
Ronald Lindsay. the British Ambassa-
dor, at Stimson's home, Woodley.
Stimson's Note to Britain.
In it the Secretary of State wrote as
follows.
Il believe that our future course as
pointed out by our correspondence Is
clear. In your first note of November
l3 you asked for an exchange Of views
at the earliest possible moment with
respect 10 the regime of intergovern-
mental financial blgations. and. in
your second note. YOU welcomed the ex-
preston of our willingness to facilitate
such discussions. and referred to the
desirability of close examination be
tween our governments OF the whole
subject in preparation for the inter-
national conference
In my last note Of December re-
piled that the President Of the United
States was prepared. through whatever
operation with your government. to sur
vey the entire situation Tin which the
debt of the British government to the
United States necessarily plays a part
and to consider what means may be
taken to bring about the restoration of
stable currencies and exchange. the re-
vival of trade and the recovery of
prices"
The situation in Europe was changed
yesterday by the formation Of new
Paris government under Joseph Paul
Boncour
Economic Phase Discussed.
The part war debts play in world
economic affairs was discussed yeSter-
day by Mr.. Hoover and Secretary Mills.
This same theme dominated two
hour conference Saturday in which
Mills. Secretary Stimson and George
L. Harrison, governor of the New York
Federal Reserve Bank, participated.
julius Klein, Assistant Secretary Of
Commerce said last night in an ad-
dress discussing the world monetary and
economic conference next month that
America must bear in mind that it
'is not going to be in a position to sit
back comfortably and blandly suggest
the things 1t wants the other nations
to do Tor the common good"
If We want concessions from others" 7"
he said. I'VE may be called upon to
make certain concessions ourselves. As
to what those concessions might be, I
Since the whole question Of trade
revival Is so intimately connected with
that OF public as we'll as private indebt-
edness between nations. 1t is evident
there will be a close connection between
a satisfactory adjustment Of the war
debt situation and the success or failure
Of the world economic conference