The Waterbury Democrat., 1932-11-25
BY J0sEPH H. BAIRD

Onttou Press 8GnM Correspondent. . Washington. Nov z5.-QUP)- President Hoover's ''pay in your own money, plan for foreign debt Ors. as explained to-day by gov- ernment economists. would mean in It's own banks the amount of it's to transfer later to the U. S, treas ury.
 The president merely laid down a principle rnther than detailed plan 1t was pointed out. and are arrangements would have to be worked out in negotiations and ap- proved by congress. The initiative now rests with debtor nations which have been advised by the United States that they must meet the December payments or de- fault.
 Taking Poland as an example. economists believe the plan of pay ment in foreign currencies prob ably would work out thus:
 Poland owes the United States on December 1, $4.427. .980--s1,357,- 900 on principal and $3.070.980 on interest. The Polish unit of cur rency, the zloty, Is quoted in in- tCkn4tAVh0A CALAs9A8S tt1tg WOCN 0e HIS cents, thus Poland would de- p6sit in its central bank for the United States 39e,062,612. zloties. the equavalent of $4,427,980.
 Likewise, Great Britain, owing $95,500,0OO, could set aside $29,- .3s4,647 in the Bank of England, the value of the pound this week similarly, Belgium, owing s2,- 125,000, would deposit -15,432,967 belgas in it's central bank. The current value of the belgar is 1885 cents.
 Later when the international money market Is easier and the purchase by these foreign coun- tries of gold or dollar exchange would not depress their own cur rencies as much as now, these funds would be converted into American dollars and transferred to the U. s. treasury. Meanwhile, the United States would be pro- further shrinkage of the foreign currencies by an, agreement that should the currencies lose value the debtor nations would pay enough more of their own monies to make good the loss.
 It war further suggested by gov ernment economists that probably the date fixed for transfer of any particular currency into gold or dollar exchange for. the United States would be kept secret, so that rumors of the impending transac- tion would not depress that cur- rency.
 some of the European nations Austria, Hungary. Jugoslavia,s Ru- mania, and Greece, for instance have laws forbidding or restricting the transfer of their currencies. Possibly, if financial conditions grow worse, others may adopt simi- lar.laws. But the government im- posing those rules have authority to relax them to make any trans fers they may promise to the U. $.
 Tn brief, the Hoover plan Is based on the expectation that present transfer difficulties are temporary and that eventually foreign nations can buy gold or dollar exchange more cheaply than now and with less danger to their own financial stability.
 The presidents proposal resem- bles. to some extent, the plan workout in connection with the Hoover moratorium for the pay ment of German reparations. France, eager to preserve the form of the Young plan, demanded thnt Germany pay it's 1881 reparationsi into the Bank for International Settlements, but the German rail- roads were allowed to borrow the money back.
 Likewise. the Hoover plan would keep the debt structure yntact. It would require the foreign coun- tries to provide for the American debt payments in their budgets and make them in their own curren-