Evening star., 1934-01-12
WAR DEBT REPORT
VIRTUALLY READY
Treasury Study, Expected to
Face Controversy, viii
Tell Full Story.

BY the Associated Press.
Treasury officials had almost ready
for transmission today a detailed re-.
port on Americas s1l. .00o. 900, 900 war
debt problem, q chart to be placed be-
fore Senate which twice in a week has
sought to retaliate against faltering
debtors.
Democratic leaders at the Capitol saw
in the report, demanded by the Senate.
new fuel for the controversy which al
ready has drawn White House interven-
ton.
In detail, the Treasury statement will
show just what Europe owes this coun-
try, how much has been paid and how
far some of the borrowers are tagging.
Informed quarters. however, consider
it unlikely that Secretary Morgenthau
will designate which nations he believes
are defaulters. Whether a token" pay
ment constitutes q technical default is
Congress can better decide.
Some Clearly Defaulters.
Some debtors are considered clearly
in default since they have consistently
failed Of late to make their sen1i-an-
nual payments. One-F1nland-is in a
class by itself 1t has paid every in
stallment in full
Chief defaulters are France, whose
funded debt is 1885, $50, 900; Belgium,
with $400, $50 900; Poland, with $685.
057, 900, and Esthonia, with Sl6, ,566, 900.
Those which have made token" pay
ments include Great Britain, whose
debt was funded at "a, ,36s, 900 900; Italy,
with $2,004,000, 900; Czechoslovakia,
with $l65 .39l 900; Latvia, with $6,s79,-
600. and Lithuania. with s6,197 900.
Newiy-recognized Russia has been
Liquor Duty Penalty.
The first of the Senate's retaliatory
moves was to add an additional tax on
liquor imports from defaulting nations.
Only after word from the White House
was this finally eliminated from the
general liquor tax bill.
Senator johnson, Republican, Of CAL
ifornia, then put through his measure
to prohibit individuals and corpora
tions from doing business with default
ers. A demand for reconsideration also
has been made on this proposal.
Four roll calls were necessary TO call
the liquor tax bill back for reconsid-
GRAFTON by the Senate. On the final
one, throwing out the war debt amend
ment, four Republicans Joined 40 Dem
ocrats against the amendment. while
% Republicans, Democrats and the
Farmer r-Laborite, Shipstead, voted for
it again.
Nine Democrats who voted for the
amendment Wednesday did not vote
yesterday, while the Republicans held
Wednesdays lines for it intact.
Three Democrats, Duffy. wisconsin;
Murphy, Iowa, and Trammell. Florida,
switched their votes from aye to no"
II was Murphy who moved reconsid-
Grafton of the proposal after Senator
Harrison, Democrat of Mississippi
gained reconsideration OF the bill.
Murphy said information reached him
yesterday that the amendment would
''tie the hands Of the President in tariff
bargaining" and he desired to change
his vote.
Senator Clark tried to table the mo-
ton, but lost, As to 20.
Soon afterward the Senate, with only
dozen members on the floor and
operating under the unanimous consent
rule, passed Senator Johnsons bill, i'm
posing heavy penalties on persons and
defaulting nations or loaning such
countries funds.
Representation Asked.
Senator Robinson of Arkansas, the
Democratic leader, who was absent from
the chamber when this measure passed,
later entered q motion to reconsider,
but refrained from pressing for action
pending q conference with johnson.
Robinson told the Senate the measure
was very extraordinary" in that it
would put q man In prison and fine
him $4,000 for buying q doreign)
bond"
His notice of reconsideration will
serve to keep the bill in the Senate
until the motion is called up. No de-
bate preceded its passage.