Evening star., 1939-06-25
Foreign Loans
To Boost Trade
Hit by Senators
Boroh Coils Them Plan
To Risk Millions of
Toxpoyers' Money
BY the Associated Press,

BY the Associated Press,
President Roosevelt's proposal to
lend $500. 600 900 to foreign countries
to promote American trade brought
a blast of criticism in the Senate
yesterday, even before the admin.
istration's new lending legislation
reached Congress.
Senator Borah, Republican, OF
Idaho, 73-year-old dean of the Sem
ate. told his colleagues the foreign
loans would be equivalent to turning
over vast millions of the taxpayers
money for South American politi.
clans to play with"
He said South American loans
were in default of both principal and
interest, and asserted that "in MANY
instances, no effort is being made to
pay them"
Senator Taft, Republican, of Ohio,
voiced criticism of foreign loans and
Senator Lucas, Democrat, of Illinois
told the Senate it was "a dangerous
practice to permit the Export.
Import Bank to make loans to for.
elgn nations without the express
approval of Congress.
Specifies U. S. Spending.
The President has proposed a
5000 600. 900 two-year program of for.
eign loans as part of his new
50 3060 900 900 lending program. He
stipulated that the proceeds from
the advances, to be made by the
Export-1mport Bank, should be
spent in this country.
When the suggestion was criticized
In the Senate, Majority Leader
Barkley and Senator Wagner, Demo.
crat, Of New York came to its de.
fense.
Senator Barkley said defaulted
south American obligations were
not those of central governments.
but private loans that Americans
took during "the boom period" Ct
the early '20s.
Senator Wagner said the Export.
Import Bank had made a profit to
date" and had helped finance sales
OF goods which otherwise could not
have been made.
1T isn't exactly a loan. but 4
financing of exports" he contended,
There are two sides to that mat.
ter, Senator Borah put in.
The question of defaulted South
American loans was touched on also
In statement issued during the
| day by Representative Otter, Re.
publican, of Pennsylvania through
the Republican National Committee.
Called Pledge Violation.
Representative Otter said the
Presidents loan proposal was "an.
other attempt to pluck the Ameri.
can taxpayer to save the face of an
administration bankrupt of ideas
except to spend and spend" and,
furthermore. was violation of a
pledge Mr.. Roosevelt made in 1882.
In campaign speech at st. Louis
in 1882. he said. Mr.. Roosevelt re.
ferred to these loans as IAN abuse of
American investors" and promised
to prevent "the hard-earned dollars
Of American investors from being
frittered away in foreign fields with
the encouragement of the Federal
Government"
Mr.. Otter added:
Where is his indignation today?
He is actually proposing more loans
to Latin-American countries, and
loans, moreover. not only encouraged
by the Roosevelt administration, but
actually sponsored by the Roosevelt
administration"
Administration leaders expect the
lending program to be submitted
this week in the form of legisla.
ton. Every effort will be made,
they indicated, to expedite congres.
sional action.
Rayburn to Push Plan.
Representative Rayburn of Texas,
the majority leader, said the House
would got to bat on it" as soon as
1t was received.
The prospect of the lending leg
islation may result in elimination
of any funds for the Public Works
Administration from the 81 .735 ,0OO,.
600 relief appropriation, now before
Senate Appropriations Subcom-
mittee.
Members of this group forecast
elimination of various House-ap.
proved restrictions on Works Prog
ress Administration operations and
said they probably would send the
measure to the Senate floor by Tues.
day.
Senator Mead, Democrat, of New
York said in statement he would
press for adoption of his amend.
ment to add $500, 900 900 to the re.
lief bill for P. w. A. projects. The
house earmarked for P. w. A. $685.
100000 of the $1,477 900 900 Mr..
Roosevelt asked for work relief.
There is a real need for contin.
uation Of P. w. A." Senator Mead
asserted. II cannot approve of shaw
ing w. P. A. funds to provide for q
limited, curtailed p. w. A. pro-
| gram"
Senate leaders, asking anonymity,
told reporters, however, there should
be no necessity for additional p.
w. A funds if the new lending pro.
gram was approved.
THREAT IN '1ia lin cnae{'