Evening star., 1932-04-18
NEW MORATORIUM
BELIEVED UNLIKELY
Johnson's Prediction Is Dis
counted in AdminiStra-
tion Quarters.
By the Associated Press.

BY the Associated Press.
Despite Senator Johnson's prediction
that another moratorium on war debts
will. be forthcoming when the present
cne expires in June, there is no eXpecta-
tion in administration quarters that
President Hoover will initiate such
step
Since the Californian gave his views
to the Senate last week new contribu-
tions to the debt question as put forth
by Alfred E. Smith and Nicholas Muir
ray Butler have been getting study But
it can hardly be said that suggestions
for adjustments of the debts have had
any real effect.
1t remains to be seen how far former
Gov Smith will get with his plan for
20-year moratorium. during which this
country would write off as paid each
year "25 per cent Of the gross value of
American products which the debtor
nations buy from us" Judging from the
reception given when it was proposed by
him. his Democratic confereeS are
mighty reticent about giving support.
Scant Support for Butler.
Nor has there been any chorus of as
sent in Republican councils for the con-
viction recently expressed by President
Butler of Columbia University that any
political party or candidate opposing a
debt readjustment merely declares in
favor Of prOlOnging the existent depres-
sion"
Senator johnson said he believed
those in control of US" are getting
ready to give another moratorium of
$40 900 000-$520, 100000 in all'-to be
followed ultimately by revision and can
collation. of the debts. Because this
q 1y0i c "a IN
position, as it became evident after the
decisive congressional vote last Fall
against revision, the turn Of events will
be followed extremely close henceforth
Secretary Stinlson left for Geneva
with an administration announcement
that he would discuss only disarm-
ament at the Geneva Conference and
would not go into the debts and repa-
rations The administration has taken
the position that reparationS are strict
ly European problem, since the United
States is not collecting any reparations,
and must be settled, by Europe.
The great powers of Europe will meet
at Lausanne, Switzerland, in June to
decide primarily what shall be done
about reparations Germany has said
she cannot continue payments, the first
due July is, and has been supported
in that position by international econo-
mist who met at Basel and analyzed
German finances.
Consequently the Lausanne meeting
will have for its first task the decision
as to what is to be done about Ger
many's prospective early default.
Must Find Other Revenue.
Much of the money which other
powers have been paying on debts to
the United States has been obtained
from Germany. Consequently dis
continuance of German payments will
compel nations which do not default
in payments to the United States to
find other means Of raising these sums
The one-year moratorium which the
United States granted postponed pay
ment of 1882 100000 for the current
fiscal year-that is, July of last year
until June 80 of this year. For the
next fiscal year, ending June 30. 1888
q total of s269 ,975 900 will be due the
United States. and this has been in
cluded in the budget as money the
United States expects to receive.
On December Is the first large pay
ments will fall due, SO there will be
four and a ehEh nonthss after the
Lausanne conference for the European
powers to make arrangements about
these obligations.
Great Britain is the chief debtor OF
the United States and in the fiscal year
ending June 80. 1888, must make pay
ments aggregating $l71 500 900. For the
same period other powers are obligated
to pay: France $50 .0o0, ,0eo: Germany,
Sl5,700,000; Italy, $l4,79o, 600, and Bel
GUM, S8,45o 600.