The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-08-22
C. 0. P. RIPS
CHARGES MADE
BY ROOSEVELT
Denies Conniving on Loans
to Foreign Countries
in u. S.
BY RAYMOND CLAPPER
United Press STAFF Correspondent


WASHINGTON, Aug. GA
sharp counter-b arrage has been
directed at Governor Franklin D.
Roosevelt from administration bat
teries, in answer to the Governor
Columbus speech.
The state department issued a
formal statement denying RooSe-
velt's intimation that it had con-
nived at encouraging floating Of
foreign loans in this country.
Republican House Leader Bert
rand H. Smell asked why the stock
market and federal security regula-
ton which Roosevelt advocated had
not been tried out by him. In New
York state where the nations
money market is located.
War Secretary Patrick Hurley is
arranging to make more detailed
answer in a speech at Providence,
R. L, Wednesday.
And at Manila, P. l., it was an
nounced that Theodore Roosevelt
Jr. is to return at once to the United
States, supposedly to help campaign
against his cousin, the Democratic
Roosevelt, although the. announce
ment did not mention the campaign.
FOresee Hard Hitting Campaign
RooSevelt'S strong language at Co.
lumbuS, and the sharp replies from
the administration over the week
end forecast a hard~hitting, bare
listed campaign.
Roosevelt put forward economic
questions as the dominating issue
and the administration is prepared
to accept battle on that territory.
While prohibition continues to
cause violent controversy, it now ap-
pears that the two presidential can
didateS prefer to center their politi-
cal crossfire on the economic prob
lens involved in the depression.
The state department fatty de-
MED that it had assisted interna-
tional bankers in floating foreign
loans in this country or had ever
approved any such loans.
The department of state never
has approved single foreign loan, -
the statement said. cit advised the
bankers not to make loans to coun-
tries which had not funded their
debts to the United States, thereby
speeding up the negotiations which
resulted in the debt agreements.
Points to New York Record
"At one time, the department
warned bankers planning to adj
vance loans to Germany of the
dangerous over-extension of credit
to that country, and of the probable
difficulties of collection due to the
provisions of the Treaty of Yer
sailles.
"It undoubtedly through it's adj
vice thus prevented many loans. On
the other hand it never has en-
couraged the issuance of any loans
whatsoever"
Representative Smell asked in
connection with -Roosevelt's demand
for more stringent regulation of
banks to protect depositors:
HAS the Governor forgotten that
one of the most evil-smelling bank
failures in the United States took
place in New York City, a failure
followed by indictment and con-
viction?
Does he promise the country
the kind of supervision that pre-
coded the failure of the Bank of
the United States, a state institu-
ton supervised by the state bank
ing departments"
Why Not Regulated Before?
Pointing out that the nations
leading stock exchange and bank
ing houses are located in New York
City, Smell declared Roosevelt him
self could have initiated the stock
market regulation and security issue
reforms which he advocated at Co.
lumbus.
Smell said there were no legal
barriers to state regulation while
the Governor should know that
there is no constitutional basis for
federal government regulation of
the stock exchange or the issuance
Of securities by business concerns"
1.-THE Governors most recent pro-
gram and promises" the Republican
spokesman declared, ARE just an
other example of what will haunt
him and his party through this
campaign-promises nullifed by
stark and unacceptable record"