Evening star., 1932-12-09
PARIS AND LONDON
PREPARING TO PAY
Both Countries Show Wiling
ness to Meet Payment
With Reservations.
Continued From First Page.)


ment today on the latest Stimson note,
pending definite proposals from the
English Nevertheless, in Democratic
circles there were renewed expressions
that Congress had no intentions OF
revising the foreign obligations.
Stimson himself told the British that
any new examination of the question
made in preparation for the interna-
tional economic conference does not
imply cancellation" and said the
American Government did not agree
that complete cancellation" was essen
tial to world recovery or that payments
already made were responsible for the
worlds economic unsettlement and con-
centration of gold in the United States
Disagrees With View.
stimson also commented on implica-
tions in the British note that the money
loaned by the United States was spent
entirely for destructive purposes and
disagreed with that view
"Of the amount expended in the
United States by our debtors after we
entered the war, both before and after
the armistice, most of which was bor-
rowed from the United States Govern
ment on war and relief loans. less than
one-third was spent for munitions and
remounts," the reply said.
Very large amounts were spent for
food, tobacco, etc, for cotton and ex-
change, for relief and surplus supplies
sold on credit, for repayments OF COM
mercial loans, and for interest Much
of the food, tobacco, cotton. relief and
other supplies sold on credit were re-
sold by the governments for use of
their own civilian population. In Ger
tain cases these supplies were actually
resold and the funds turned into the
treasury Of the debtor governments"
The cabinet officer also said the
British note seemed to overemphasize
the influence war debts payments have
had on world economy.
I'm general. it is our view that the
causes of this depression lie in much
more potent forces than these debt
transactions" the note continued.
1t was pointed out by Secretary Stim-
son that the British note omitted serv-
ice items in its inferences as to the
difficulties of payments. He said Amer
400 100000 in foreign lands between
1924 and 1880 and that immigrant re-
mittances from this country for that
period aggregated 81 .495, 900 900.
All this money, Secretary Stimson
said, should be compared with the total
receipts Of $l,673 .000,0 900 by this coun-
try on debt settlements for the CORE
spending time.
Commenting on the note. Senator
Watson Of Indiana, the Republican
leader, said:
"In general I agree with the attitude
expressed by the note. 1t is universally
understood that the December Is pay
ment is to be made. but 1t is exceed
ingly difficult in advance to say that
any new method for payment would be
accepted"
Senator Connally, Democrat, of Texas
said; II believe that Congress feels
that the European debtors should either
pay or default"
Plea Of Poland.
The Polish moratorium request was
prompted, that governments note said
by consideration Of the grave effects
which the December remittance might
have on Poland's economic structure.
AS a predominantly agricultural ma
tion,- Poland has been particularly af-
fected by the world crisis. said the note
Incomes have been reduced, and it has
been necessary TO cut the expenditures
Of state and local governments to the
very minimum.
However. 1t is imperative that bal
anced budget be maintained, primarily
because of shortage of cash reserve:
and also because of conditions in the
Polish money market which do not per-
NIT coyerage of expenditures even BY
short-term credit operations. =
The present rate of coverage on cur
rency in circulation must be main
tanned if the continued stability of tht
currency Is to be insured and the
capacity for making foreign payments
upheld. the Polish government wrote.
Poland buys 10 times as much from
the United States as she sells, the nott
said and although in 1927 and 1921
the balance was offset by long-ter1r
American investments in Poland, tn,
influx of American capital stopped
in 1929.
'The Polish government" said tht
note, expressed its readiness to com.
municate any further data. and viii
willingly consider with the Government
of the United States the form in which
such postponement could be vested"
FRENCH ASSURE PAYMENT.