Evening star., 1939-10-16
Neutrality Bill
Credit Clause
Is Dropped
Pittmon Announces
Strictly Cash Plan
Will Be Substituted
By ], A. OIEARY.

ny Js n. " LkAhY.
Chairman Pittman of the Senate
Foreign Relations Committee agreed
today to drop the provision for 90
day credits on shipments to bellig-
erents from the administration's
neutrality bill in order to make the
plan strictly "cash and carry" with
repeal of the arms embargo.
This move, announced by the
Nevada Senator as the third week of
debate began, deprives the isolation
lists Of one of the arguments they
have been using against the bill in
the debate thus far, to the effect that
90-day credits would provide an
entering wedge for longer credits.
Although administration leaders
are confident they already have a
substantial majority to pass the bill
in the Senate as soon as the discuss
sion runs out, elimination of the 90.
day credit feature is likely to
strengthen their position.
While supporters of the bill were
taking this step, Senator Clark,
Democrat. of Idaho resumed debate,
speaking against repeal of the en-
barge.
Credit Provision.
The short-term credit feature
which Senator Pittman announced
he will strike out was in the title.
and-carry section and reads as fol.
lows:
Provided, That if the President
shall find fhof -
to protect the commercial or other
interests of the United States or its
citizens, he may, in his discretion,
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 char.
acter customarily used in normal
peacetlme commercial transactions,
but only if such credits and obliga.
tlons have maturities of not moro
than 80 days and are not renewable,
II any government, political sub
division or person to which credit
has been extended pursuant to the
authority vested in the President
under this subsection Is in default
in all or in part upon any oblisa.
tion to which extension of such
credit relates, no further extension
OF credit to such government, DO.
litical subdivision or person shall he
made or authorized under this sub.
section during the period of such
default. The President shall report
to Congress every six months any
and all exceptions granted under
this subsection together with the
amounts of credit involved"
Pittman Explains Action.
Explaining the decision to drop
this discretionary credit feature,
Senator Pittman said:
The committee, in view OF the
fact that the proposed substitute
amendment to the House bill will
have to pass the House of Repre-
sentatlves, gave some consideration
to the action of the House with ref
erence to such proviso. Again, the
committee considered that the pres
idential discretion would be gov
erned by the opinion of the Attor.
ney General of the United States
in constituting the johnson Act, which
contained no such proviso as herein
proposed to be stricken out.
ut being the contention of the
committee to require settlement in
cash or cash equivalents as defined
by the Attorney General, 1 deem it
wise to avoid any confusion or any
misunderstanding by striking out
the entire proviso"
The johnson Act referred to bv
Senator Pittman was sponsored by
Senator johnson, Republican, Of
California a number of years ago
and prohibits foreign governments
with unpaid debts to the United
States from obtaining any loans in
this country.
Meanwhile, the Associated Press
reported, Speaker Bankhead told his
press conference that he was con-
f1dent the neutrality bill would pass
the House.
He made that statement in response
" request IOr comment on state
ments OF some Senators that there
was House majority of from 20 TO-
80 Tor repeal of the embargo.
Opposition Strategy Discussed.
A dozen opposition Senators met
to discuss strategy against the adj
ministration bill today and reported
afterward they were in mo hurry
to reach final vote.
Senate leaders had hoped to start
consideration of amendments in mid.
week and to obtain a final vote next
week. 49, -
Senator Nye. Republican, of North
Dakota told reporters that debate
will run all this week-we may get
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