Evening star., 1936-03-01
Poisonous Gases, Loans
and Credits to BeI|igerent
Nations Are 0utIaWed by
New Order.
PRESIDENT REVIEWS
WARNING TO TRADERS
Appeals to American People to
Shun Business With Troubled
Zones to Avoid Charge They
Are Selling New Opportunities
for Profit.

Moving swiftly after signing revised
neutrality legislation late yesterday,
President Roosevelt, by proclamation
released last night. specifically con-
tinued application of the law against
Italy and Ethiopia and extended the
export ban on war implements to
three more poisonous gases. projectile
forgings and revolvers and ammuni.
ton Of small caliber.
The revised law is effective until
May /. 1887.
OF comparable importance in effect
ing more strict abstinence from
dealings with belligerent nations was
provision of the revised law which
bans extension of loans or credits to
such nations. The new act authorizes
the President to except ordinary
commercial credits or short-term oh.
legations in aid of legal transactions,
if they are of the character of normal
peacetime transactions.
A second new section of the law
makes it unlawful to purchase, sell.
or exchange bonds, securities or other
obligations of any belligerent govern
ment, or any person acting for or In
behalf of a warning country.
American Nations Exempt.
The revision exempts other nations
of the American Hemisphere from ef-
fects of the act in case of war with q
power or powers of another continent.
In statement which he released at
the time Of signing the new law. Presi.
dent Roosevelt renewed his warnings
that all trade with belligerents is at
the traders own risk and repeated his
appeal that the American people SO
conduct their trade with belligerent
nations that 1t cannot be said that they
are seizing new opportunities for profit
or that by changing their peace-time
trade they give aid to the continuation
of war" ..
Indulgence in abnormal wartime
trade, he points out. would serve to
magnify the very evil of war which we
seek to prevent"
Governments Power Limited.
Although the legislation leaves the
administration no direct power to en-
force such limitations on exports OF
war essentials. other than actual tight.
ing implements, the new ban on loans
and credits is expected to be most
effective in this regard.
For instance, while accurate figures
are not Immediately available, it Is
thought that Italy has exhausted
whatever credit balances it may have
had in the United States. Now, with
credits shut OF, all transactions must
be made for cash, circumstance likely
to be hardship.
| In contrast, even the League of Ma.
tions has not shut the door to Italian
purchase OF oil on credit, although 1t
has discussed an embargo on this
commodity. From now on, however,
Italian purchases of oil in the United
States must be made for cash.
Text of Statement. :
The Presidents statement follows:
by the resolution approved August
81, 1885, a definite step was taken to.
ward enabling this country to main.
tain its neutrality and avoid being
drawn into wars involving other ma
tions.
1T provided that in the event of
the Executive proclaiming the exist.
ence of such a war, thereupon an en-
barge would attach to the expectation
of arms, ammunition, and implements
Of war destined to any belligerent
country. It also would authorize the
Executive to warn citizens of this
country against travelling as passengers
(see NEUTRALITY, Page -