Evening star., 1934-06-19
us. INVESTIGATING
RETALIATION MOVE
IN DEBT HOLIDAY
EngIand's Effort to Impound
Nazi Trade Balance
Studied Here.
ROOSEVELT TO CONFER
ON NEW LABOR BOARD
Selection of Stock Control and
Housing Officials Due After
Presidents Trip.
BY the Associated Press.

BY the Associated Press
President Roosevelt and the State
Department are inquiring into the
proposal of Great Britain to impound
the trade profits of Germany to off,
set the refusal of that government to
pay foreign debts.
1t has been decided definitely that
the United States Government has
the power to do this, but whether 1t
will take action has not been decided
This was made known today at the
Presidents semi-weekly press confer
ence, along with word that Mr.. RooSe-
velt had arranged a meeting with
Secretary Perkins and Senator Wag-
ner. Democrat, of New York. to or
ganiZe the new labor set-up under
the emergency legislation passed by
Congress.
Pending the talk with his labor
aides, the President said he expected
the elections by workers to select
representatives for dealing with en-
ployers to start as fast as practicable.
"Olh ~ DC oPCCuCus
However, he does not expect the
elections to be held in all plants
simultaneously or even within 10 days,
but they are to be as fast as time and
facilities permit.
The labor legislation, just enacted.
permits the President to appoint medi-
alton boards to adjust labor disputes
involving collective bargaining.
In response to inquiries, the Presi-
dent said he had not read a report
of the House Military Committee rec
ommending dismissal of Maj. Gen.
Benjamin D. Foulois as chief of the
Air Corps.
He offered no comment on this, but
did show interest in the fact that the
committee also was making report
on the Port Newark supply base.
Again he offered no comment.
Appointments Delayed.
Appointment of the Stock Exchange.
communications and housing organi-
cations has been postponed by the
President until his return here next
Monday from his trip to New Haven,
New London and Hyde Park.
Both Great Britain and France
have under consideration the organi-
zation of clearing houses in retalla-
ton against Germanys moratorium
on interest transfers.
The clearing houses would impound
all German funds in those countries
to be used in paying British and
French bondholders and other cred1-
tors now unable to secure payment
direct from Germany.
The United States has a favorable
balance of trade with Germany. ex-
porting to that country more than
is purchased Establishment of SINH
lar clearing house in this country
is not generally considered by off,
cialS here to be feasible or workable.
The Harrison resolution passed by
Congress, however, grants discretion
ary authority to impound approx
mately $50 900. 900 of German-Ameri-
can mixed claims funds now in the
United States Treasury until Germany
resumes payments to this country on
mixed claims awards and Army Of
Occupation costs.
No Move Made.
The State Department has made
no move to institute any retaliatory
measures against Germany because of
the moratorium, but did instruct Will
liam E. Dodd, the American Ambas-
sador in Berlin. to make a vigorous
protest against the declaration of the
moratorium.
At his press conference today the
President discussed a variety of mat
ters. He said the drought situation
appeared to be little better-but no
worse on the whole. He said reports
said that much depends on July
weather. especially in the corn belt.
which was described as showing some
improvement.
Mr. Roosevelt also is considering
extension of the activities of the Gov
ernment's Cuban Trade Bank to in
clude loans to Puerto Rico and the
Virgin Islands.
1t was made known that Department
o. Agriculture experts are raising a
constitutional question on the Taylor
grazing bill and President Roosevelt
will confer with them before sign
ing it.
This measure would give the Secre-
tary of Interior control over the pub
lie domain to conserve grazing land.
The constitutional question is
whether easements to water holes are
temporary or permanent. The bill
makes them permanent and the de-
partment fears this is contrary to a
Supreme Court decision.
Mr.. Roosevelt has not decided
whether he will sign the bill.