Evening star., 1932-11-13
IN CONGRESS
DUEION DEBT ISSUE
Powerful Opposition to De-
Iayed Payment Seen.
Notes Public Today.

Any program for postponement Of
war debt payment, even In the form Of
temporary moratorium suggested in the
notes of the British and French gov
ernments to be made public by the
State Department tomorrow, appears
certain to meet powerful opposition In
Congress. Indications are that the
post-haste consent necessary to defer
interest payments of more than $l23.-
600, 900 due December is will be bitterly
contested.
If President Hoover, now en- route
from California to deal with the debt
situation, has laid plans to recommend
temporary action by Congress, IL was
not apparent yesterday in Republican
ranks Following close on statement
Of definite opposition by Senator Reed,
Republican, OF Pennsylvania, Chairman
Borah Of the Senate Foreign Relations
Committee again attacked the mora
torium plan unless accompanied by the
specific assurance from debtor govern
ments of new policies abroad
At the same time Senator Bingham,
Republican, of Connecticut, said there
would be no cancellation Of debts II the
Democrats carried out their campaign
platform pledges. He saw no likeli-
hood Of Endorsement of steps toward
cancellation, as any action would have
to start in a Democratic House. He
held the European nations could and
should pay their just obligations" and
| that the burden of the war debts should
not be put on the American taxpayer.
Notes to Be Published.
The State Department remained reti-
cent on the subject yesterday beyond
| announcement of arrangements for pub
lication of the notes tomorrow morning
simultaneously with their release abroad.
No comment was offered on Paris dis
patches that Italy and Belgium would
present similar notes.
However it was no secret that COM
municationS were expected from both
the Rome and Brussels governments, as
part of what appears to be concerted
move to renew the moratorium pending
the World Economic Conference, in
which the United States will partici-
| pate. The government Of the debtor
nations obviously expect something. from
the conference despite that the United
States agreed to participate only on
the specific understanding that debts
and tariff rates would not be considered
Thus far there has been no informa-
ton here to show President Hoover has
made suggestions in Democratic quar-
ters for cooperation in a move to pro-
vide a temporary moratorium, although
President-elect Franklin D. Roosevelt
has been apprised of the nature of the
| communication of the British govern
ment. The Democrats, however, are
likely to accept any proposal that bears
| the approval of both the President
and the President-elect, and the DEM
ocratic position is more hospitable to
treatment Of debts in q world confer
ence than the Republican
The Republican position with re-
| gard to the conference is that tariffs
and debts should not be on the agenda.
But Gov. Roosevelt has spoken Of tariffs
! as subject Of international negotiations
! and he has linked the debts with the
tariff. With the economic conference
| getting underway probably not earlier
than March, Mr. Roosevelt will be in
office and it may be the new admins
tration will favor the broadening Of the
| scope of the parley to include debts
and the tariff.
Hoover May Take Aggressive.
The tendency among Senate Demo-
Gratis is to, assume that President Hoo
yer will submit an aggressive program
of his own, not only on debts, but
| other important issues, at the opening
of the short session and place the re-
| sponsibility for action Squarely up to
Congress. Another course with respect
to the immediate debt situation would
| be an advance agreement, probably BIZ
| partisan, to approve temporary stay
of debt payments to prevent further
| disturbance in currencies and the sub
sequent depreciation feared as operating
unfavorably on the United States.
Generally, the United States in the
debt funding agreements has dealt
separately with each nation, and it is
understood that the British note raises
the question Of the British debt sep
arately from the question of the Allied
debts This method, If followed by
the others, would prove agreeable to
the American contention that there can
be no Jumping of the debts for ad-
| justment of the problem.
No surprise was occasioned here yes
terday by the report from Warsaw that
the Polish government had Joined in
the concert for reduction. Poland, with
Esthonia and Latvia, exercised the right
under the debt funding agreement to
obtain. on 90-day notice, an extension
of two years on principal payment due
December is. On that date, however,
Poland will owe $3070, $50 of interest,
which cannot be postponed without
congressional consent.