Evening star., 1934-01-06
FIGHTS OVER DEBTS
AND ST. LAWRENCE
PACT ARE LOOMING
Heavy Majority in Senate
Against Treaty With
Canada Forecast.
BORAH MAKES OPENING
IN DEFAULT QUESTION
Ways and Means Committee to Be-
gin Work Tuesday on Tightening
of Income Tax Laws.
BY the Associated Press.

BY the Associated Press.
The bristly subjects of war debts and
the st. Lawrence waterway pact arose
today as questions due to shatter
shortly the comparative quiet that has
marked the young session of Congress.
Authoritative spokesmen disclosed
fresh scrap over the hoary matter of
defaults. or mere token" payments on
debts owed the United States, already
is brewing in the Senate pot. Roper
cussions are certain to be heard in the
House
The firing already was under way
today on the st. Lawrence seaway
President Roosevelt that the pact would
have the backing of the administration
for ratification, Senate opponents fore
cast heavy majority against it.
Unless plans are suddenly shifted,
the treaty with Canada will reach the
Senate floor next week. 1t appeared
likely, however. that should debate
grow too fierce or too prolonged the
question might be shelved again Sena-
tor Copeland Democrat of New York,
predicted at least so votes against rati-
fication. Two-thirdS of the Senate'S
96 votes would be necessary for ap-
proval.
Drive on Question Opened.
Despite the lull brought today by
weekend recess of boGh the Senate
and House, the war-debt issue was not
quiet. Senators regarded adoption of
the Borah resolution Thursday, calling
upon the Treasury for debt facts and
figures, as merely the opening Of a
drive to bring the question to the Sen
ate floor.
Senator Borah. Republican. of Idaho
was understood by his associates to be
planning to use the data during ex-
pected debate upon proposals for reci-
procal tariff agreements and taxes.
To seek more light on the question,
some Senators indicated another re-
quest might be made-this one of the
State Experimentation the correspond
ence on debts that has passed between
the United States and the borrowing
nations, especially the defaulterS.
Discussing debts and the tariff bar
gaining proposal, Borah told newsmen:
II certainly would refuse defaulters
any favors. If the debtors are not will
ing to bring about disarmament and
to discuss trade and money stabiliza-
ton, there is no reason why we should
discuss the question Of cancellation or
reduction"
Talk on Silver Expected
Senator Walsh. Democrat, of Massa-
chusetts said there had been no change
In public sentiment on the debts.
THE American people want them
maid - hn oGdnd
Continued talk is expected also on the
silver question. Proponents undoubt-
edly will seek to iron out differences
among themselves.
Reports of an impending new none
tary move by President Roosevelt were
still heard in Senate circles today, but
Democratic leaders insisted their view
that no silver legislation would be en-
acted this session would hold good.
Meanwhile, the entire subject Of
money and how to get it and how to
spend it is supplying Congress with
perpleXing question that bade fair to
take long in the answering.
On the getting side, the House, after
sitting through wide variety of amen
datory proposals, passed the liquor tax
bill yesterday as laid before it by its
Ways and Means Committee. 1t is esti-
mated 10 be capable of producing s470,-
100000 annually. The Ways and
Means Committee is to begin work
Tuesday on a measure designed to
twist down the regulatory screws of the
income tax laws as to produce S27O,-
100000 of revenue that has been elud-
ing officials annually.
Budget Includes $4,000, 100000.
With reference to the spending pro-
gram that has been outlined by Presi-
dent Roosevelt, House leaders who Will
provide the legal apparatus for dis
pensing the money were called to the
White House yesterday to go over the
plans. They we're told by the President
of the Importance of keeping next year S
budget for the regular department
within the narrow limitations he has
laid down.
Although the 1885 budget approx
mates Sc 600, ,0O0, 900, only S2,486, ,768,-
900 is provided for the regular Govern
ment departments. Included in the
regular budget for 1885 however, Is
$3.50 900. 900 for the Farm Adjustment
CONTINUED on page 2, column ID