The Washington times., 1932-12-15
U. S. Considers Action
RetaIiatOry to France
Ry GEORGE r. HOLMES

SClrred as 1t has not been since
war days, washington today be-
gan consideration Of retaliatory
steps against France for her de-
fiant default on her debt pay.
ment of $19,0O0,000, due at the
United States Treasury today.
In and out Of Congress, indig-
nation ran high. And the view
was generally taken that France
has eliminated herself from par
ticipation in the benefits Of any
future readjustment Of the whole
debt structure.
Notice that sos, $50, 900 in gold
had been ear-marked in London
for the account of the American
Government, to meet Great
Britain'S payment was handed to
Secretary Of the Treasury Mills
today by Sir Ronald Lindsay,
British Ambassador.
The gold will be shipped to the
United States as rapidly as. pos
sible but not all in one shipment,
since there is limitation on the
amount which steamships carry.
Four Defaulters
Italy was expected to make her
payment at the Federal. Reserve
Bank in New York some time
today. Mills said Poland. Bel
giI1n, France and Hungary would
default on their payments, total
ing $25,855,l
Frances decision not to pay
was communicated officially to
Secretary of State Stimson at
noon by the French Ambassador,
Paul Claudel.
Secretary Stimson declined to
divulge the nature of the French
communication. and the ambas-
sador was equally reticent.
Opinion was universal that
there can be no further negotia-
tions with France until she meets
her payment.
Special Message Near
President Hoover is expected to
lay the situation before Congress
in a special message.
His present disposition is to ask
Congress to authorize the ap-
pointment Of a bipartisan COM
mission to deal with those debtor
countries that have met their OBJ
legations, but to which the de-
faulters will have no approach
until they honor their signatures
on the obligations now due.
Already one resolution has been
introduced in Congress to bar
from this country the securities of
any foreign country which de-
faults on its solemn obligations to
the United States.
There will be scores Of other re-
taliatory measures introduced in
succeeding weeks unless the
debtors take steps to rectify their
defaults.
The speculation and talk con-
corning these measures ran all the
way from a boycott on French
goods to the prevention of Ameri-
can tourists from spending the mil
lions they annually spend in
France.
In the past few years the Amer
lean tourist trade has been worth
from $400, ,000, 900 to $500, ,000, 900
year, or many times the rela-
lively insignificant sum Of SIG, ,000,-
pay.
Senator Reed Caustic
Senator David A. Reed Of
Pennsylvania, commenting upon
the resolution to bar French
securities from this country,
observed he didn't think it was
necessary. He said:
Anybody who would buy a
French security after this
doesn't deserve to have any
money"
Czechoslovakia, in a formal
note today. said she was making
her war debt payment without
strings or reservations, but
stressed the hardShips encountered
in doing so.
The note asked, however, that
some way may be found to incor.
porate this last installment into
whatever arrangement may be ar
rived at as the result of negotia-
tionS for reconsideration and re-
vision which the Czechoslovakian
government urged be entered into
at the earliest possible date.
AS for the small defaulters,
Belgium, and probably Poland,
it was felt that these countries
were forced into their action by
the French. They are scarcely
more than vasSalS of France
under existing conditions.
Whether Congress will agree
to Mr.. Hoover'S request for the
appointment of a commission to
deal with the honest debtors
is problematical.
It has heretofore refused. But
IN the existing circumstances there
was a feeling in some quarters
that its consent might be won at
this time-if for no other reason
than to punish France by re-
1using her any access to the new
agency. -
should Congress refuse. how