Evening star., 1939-09-29
Bill
Seen Modifying
Anti-Loan Act
Pittmun Defends
90-Doy Credit Period
Allowed in Measure
By J. A. OLEARY.

Defending the 90-day credit period
allowed by the administrations neu-
trality bill as feature of the take
title and carry" plan, Chairman Pitt
man Of the Senate Foreign Relations
Committee declared today that this
is neutral move because the exist
ing johnson Act gives Germany an
advantage over Great Britain and
France if it desired to borrow in this
country.
Senator Pittman said he regards
the 90-day credit proposal as a mod
iflcation of the johnson Act, which
was passed several years ago under
entirely different circumstances to
prevent European nations from OBJ
tanning loans in this country if they
are in default in Indebtedness to
the United States.
AS the committee formally ratified
today the changes agreed to in prin-
ciple yesterday. discussion was di-
rected to the 90-day credit provision
when Senator Johnson, Republican,
Of California, announced he would
offer an amendment in the Senate
to preserve the old act bearing his
name against loans to debtor ma
tlons.
Would Oppose Amendment.
Senator Pittman said he would
object to such an amendment "on
the ground that we are faced with
a certain condition in Europe at this
time" and that unless this bill is an
amendment to the johnson Act,
credits could be extended without
limit to Germany under the john
son Act and yet Great Britain and
France could not obtain credit"
The Senate committee chairman
based this view on the ground that
Germany has no defaulted debt to
this country and, therefore, would
have the right to borrow all the
money American citizens were will
ing to lend. Senator Pittman said
that If it is the desire of the Senate
not to discriminate between the bel
hgerents in the present situation,
1t becomes essential to pass the
pending bill
AT the same time, Senator Pitt
man emphasized again that the bill
is intended primarily as a cash-and-
carry plan, with the 90-day exten.
sion of credit merely a discretion
airy privilege to be used when the
President deems it advisable.
Furthermore, he pointed out, the
last-minute revision in committee
makes the 90-day restriction strong
er by providing that whenever a
belllgerent is in default in whole or
in part on any 90-day obligation it
can receive no further credit until
settlement is made.
Action Modified.
The comittee today also modified
Yesterdays action by more clearly
defining the area within which
American vessels and aircraft could
continue to carry passengers anc
mail to colonial possessions of bel.
Hgerents south of the United States.
In final form. it would allow such
transportation by American vessels
or aircraft to any place in the West
ern Hemisphere, south of 80 degrees
north latitude
Senator Pittman said this line
was agreed on because it runs
through New Orleans and would
prevent American ships from going
10 canada by an ocean route that
might take them out into the sub
marine danger zone. The bill safe.
guards continued transportation
over land and inland WATERWAYS
between the United States and
Canada.
The new latitude line. however,
eliminates Bermuda from the points
TO which American planes and YES
sells could continue to carry passen-
gers and mail.
May Stop at Possessions.
IN response to inquiries, Senator
Plttman expressed a belief that
American vessels carrying cargo to
neutral South American ports could
stop at belligerent colonial possess
slons, merely as a port of call. pro-
Vloed they did not deliver anv
cargo there. In other words, the
amendment is designed only to per-
NIT continued passenger travel and
mall transportation to these colonial
possessions south of the United
States.
Inc committee also perfected to-
DAY the amendment to permit con-
tlnued operation of American air.
(See NEUTRALITY, Page A-3D