Evening star., 1939-09-30

censor and thence transmitted
preserve the neutrality and the
peace Of the United States and to
secure the safety of its citizens and
their interests. In attempting to
accomplish. this purpose, the COM
mittee has written into the proposed
substitute definite and mandatory
legislation wherever discretion could
be eliminated.
From consideration of the text
it will be noted that the cash-and-
carry provisions of the law which
expired by their terms on May l.,
1899, and which have not been re-
enacted, have been strengthened as
to the provisions dealing with the
divesting of title of citizens in goods
to be conveyed and transferred and
exported to belligerent countries.
The addition of this language to the
paragraph in the old law with re-
gard to the divesting of title, namely
that No loss incurred by any such
citizen in connection with the sale
or transfer of right, title and in
terest in any such articles or ma
terials shall be made the basis of
any claim put forward by the Gov
ernment of the United States, covers
any loophole that might have ex-
listed in the old provisions as an ex-
cuse for demanding of the Govern
ment that the Government under
take to collect debts due citizen.
Shipping Proviso Mandatory.
This, however, is not the most i'm
portant change in the old cash-and-
carry law. The provisions of the
old law with regard to carry did not
prohibit the transfer of contraband-
that is, articles and materials desig-
mated by warning powers as war ma
terials-to belligerents except the
few manufactured articles defined as
arms, ammunition and implements
OF war, but delegated to the Presi-
dent the discretion to prohibit
American vessels from carrying Ger
tain articles to belligerents which
he could name. The proposed sub
stltute in definite language and in
mandatory manner prohibits
American vessels to carry any pas
sengers or any articles or materials
to any foreign state named by the
President as being in a state of war
The section of the proposed sub
stltute which is intended to accomp-
llsh this purpose is found in sec
ton 2 Ia, which reads as follows:
Section 2 ca Whenever the Pres
ldent shall have issued proclama-
ton under the authority of section
l (a) it shall thereafter be un.aw-
ful for any American vessel to car
ry any passenger or any articles or
materials to any state named in
such proclamation
1T is true, however. that in sub.
section 0D there are certain ex-
ceptions to the mandatory provis-
ions of section ca hereinbefore
set out with relation to certain
characters of transportation to ports
in the Western Hemisphere. 1t will
be noted that these exceptions are
minor and in no way affect the pro-
hibition of transportation by Ameri-
can vessels to the warning powers in
Europe or by sea to Canada.
May Ban Shipping to Neutrals.
The committee has inserted in
the proposed substitute for the
House resolution new provision,
being section 3 (a), entitled Combat
Areas This in its very nature must
apply to neutrals and not to belliger-
ents because there will be no COM
merce by American vessels with bel
ligerents under the prohibition con-
tanned in section 2 Ia. It is in
tended to grant to the President
discretion to prevent our American
ships from trading with neutrals
adjacent to belligerents in the event
a belligerent is summarizing our
American merchant vessels which
are engaged in commerce with such
neutralS.
This discretion was deemed neces-
sary to meet any emergency for
the transfer of a passenger to
neutral port even though it be in
a combat area and to protect against
unreasonable prosecution of a cit
izen of the United States under the
harsh provisions of the section.
Financial Provision STRENGTHENED.
THE section dealing with financial
transactions in the existing law has
been greatly strengthened as a COM
parison of the existing law with the
proposed substitute will readily dis
close. Under existing law credits
to belligerent governments are pro-
hibited, but there is a proviso at
tached to such section which states:
Provided, That if the President
shall find that such action will
serve to protect the commercial or
other interests of the United States
or its citizens, he may, in his dis
cretion, and to such extent and
under such regulations as he may
prescribe, except from the operation
of this section ordinary commercial
credits and short-time obligations
in aid of legal transactions and of
a character customarily used in
normal peacetime commercial trans
actions
I'm the House joint resolution,
the existing law was amended by
inserting after the words except
from the operation of this section
the following words, for period of
not more than 80 days without
renewals Your committee did not