Evening star., 1939-02-02
BY the Associated Press.

By the Associated Press.
President Roosevelt and members
of House Appropriation Subcom-
mittee studied today world affairs"
and technical developments" in
connection with the Army defense
program.
Mr. Roosevelt conferred for about
an hour with Chairman Taylor,
Democrat, of Colorado of the full
House Appropriations Committee
and an eight-member subcommittee
headed by Representative Synder,
Democrat, of Pennsylvania. The
subcommittee has been framing the
War Department appropriation bill.
I'VE were just talking over the
technical details as to the general
situation in world affairs and what
this committee is considering" said
Mr.. Taylor.
ut was very ordinary and
friendly discussion of the situation"
Both Representatives Taylor and
Snyder said the President did not
go into a broad outline of the back
ground of foreign policy as he did at
the White House meeting Tuesday
with the Senate Military Affairs
Committee.
Mr.. Snyder added there was no
mention of the sale of planes to
France.
To Provide for Planes.
Mr.. RooSevelt's talk with the Sen
ate committee on the purchase of
Warplanes in this country by DEM
ocracies aroused great furry of
debate in Congress on whether the
American aviation could supply the
Army with 5000 new planes and fill
foreign orders at the same time.
Mr.. Snyder would not predict
when the Army bill would be ready,
but said it would carry a provision
20 make $50,00O,0O0 Immediately
available to get mass production of
planes for our Army under way.
This fund was especially requested
by the President.
The War Department announced
today that Brig. Gen. Barton X.
Yount had taken general charge Of
the training of several thousand ad-
ditional flyers needed in expanding
the Air Corps.
Gen. Yount, former commander
of the Air Corps training center in
Texas, became chief yesterday of
a new training and operations Givi-
sion here.
To man the 5000 or more new
war planes for which President
Roosevelt asked Congress for funds
the Air Corps plans to add 1900 Of
f1cers and 1000 flying cadets, ard
upwards of $4,000 enlisted men.
Denies Fund Used.
Secretary Morgenthau, who ad-
ministers the Treasury's $2,0O0,0O0,-
900 stabilization fund, denied today
1t had been used to help France or
any other power buy military sup
plies or merchandise in this coun-
try, directly or indirectly
He said he hoped the Senate Mill
tary Affairs Committee would make
public his testimony of last week
to show what, if any, help he gave
France in buying planes in this
country.
The stabilization fund, created out
of the profit on dollar devaluation
In 1884, conducts foreign exchange
market operations in an effort to
stabilize the dollar in reference to
foreign currencies.
Mr.. Morgenthau Said secrecy was
necessary to the funds operations,
adding that its usefulness would be
lessened by the full publicity advo-
Gated by Senator Lodge, Republican,
of Massachusetts, and others.
He declined to comment directly
on a proposal of Senator Lodge for
an independent audit of the fund,
but said such resolution would
reflect on the integrity of three
Treasury employees who audit the
funds accounts every year.
More Information Sought.
Without identifying the trio Mr.
Morgenthau said each had worked
in the Treasury for 81 to 20 years.
Meanwhile, Republicans demanded
that the Senate Military Affairs
Committee summons airplane man.
ufacturers to clear up the question
of whether Army orders and for
eign orders both could be handled.
Senator Austin, Republican, of
Vermont said the five Republican
members of the committee wanted
first-hand information because this
was a vital question in the con-
troversy over proposed sale of the
latest type of military planes to
France.
The projected sale aroused a
stormy debate in the Senate yester-
day, with critics of the President
(See DEFENSE, Page ABB