Evening star., 1940-11-28
Senate Banking Unit
To Study Britain's
Resources in U.S..
information Is Sought
As Busis for Action on
Financial Aid PIeos
By the Associated Press.


The Senate Banking Committee,
it was learned today, is seeking to
establish the exact extent Of Brit
aims remaining financial reserves in
the United States-data considered
essential to any congressional dis
cussion of loans or credits to the
empire.
Chairman Wagner disclosed that
this was one of the major questions
which the committee hopes to an
swer by a broad monetary and fiscal
investigation authorized by the
Senate more than year ago.
Senator Wagner said he expected
to open public hearings on this and
numerous kindred subjects shortly
after the next session of Congress
meets in January.
The investigation also probably
will include a study of how Ger
many, England and other nations
are financing their costly war out
lays and avoiding imitation" he
said in an interview. 1T may de-
velop that We will need legislation
to control any tendency toward in
f1ation."
Morgenthau Lauds Base Deal.
A growing congressional dispute
over giving Britain the financial aid
now prohibited by law has produced
| a secondary argument as to what
funds and resources Britain still
has left in the United States for
purchases of munitions. airplanes
ships and other supplies.
Secretary of the Treasury Morgen-
thau suggested today the United
States should look at some of the
cash assets" of the British before
considering the purchase Of any OF
Britains West Indian islands in or
der to facilitate her buying of war
supplies.
In his first press conference after
a three-week vacation Mr.. Morgen-
thau declared, however, that he was
not prepared to answer any ques-
tions on how much cash the British
have left for purchases.
The Secretary spent his vacation
in the Caribbean area and he was
enthusiastic over utilization of the
air and naval bases on British is
lands which the United States leased
for so destroyers.
Mr.. Morgenthau flew over the site
leased in Jamaica and reported he
found wonderful anchorage large
enough to take our whole fleet"
Action on Aid Delayed.
"As time goes on" he said, II think
the people will realize that the lease
of these bases was one of the most
important steps for defense in our
time"
The Senate Foreign Relations
Committee yesterday delayed action
on British aid requests until jan
uary and Chairman George said that
an evaluation of British resources
and purchases was pertinent to any
future congressional action.
Several high administration Of
ficials have estimated that Britain's
remaining financial reserves were
equal to at least another year OF
neavy war supply purchases. British
spokesmen, however, recently have
been saying that their financial
problem would become acute in 1941
Detailed Reports Sought
Senator Wagner pointed out that
the Banking Committee in the
private investigation already under
way has asked for detailed facts on
foreign capital, investments and
balances in the United States. The
information has been requested from
the Treasury Department. Commerce
Department, Federal Reserve Sys-
tenn and affiliated banks and nu-
merous other public and private
sources.
The investigation, authorized be-
fore the European outbreak, aimed
at recommendations for national
monetary and banking policy by
which the monetary and banking
authorities of the Federal Govern
ment shall be guided and governed. "
1t was approved by the Senate
after continued disputes over gold
devaluation, purchase of foreign
and domestic silver, and other fiscal
and monetary issues.