The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1940-05-13

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Allied Powers. Secretary OF
exptced to reaffirm United ST
ut peace while extending sympathy
to the Allies, Hull viii speak twice
first at about II a, m. tES'D before
the American Scientific Congress
and In the evening before the Amer
lean Society OF International Law,
First new war charge against the
taxpayer probably will be ma
tional defense expansion program
which may get under way this week
with q request for $500, 900 900 above
the $4,000 100000 already requested
for that purpose In the next fiscal
year. II $500, ZOO, 900 Is added to i'm
fediate national defense costs the
national debt probably will zoom
past the existing $45 600, 900 900 debt
limit.
Congress Must Act
Congress scarcely could avoid some
action under glich circumstances
although II might be delayed until
next session and consist merely OF
permission for the treasury TO go IN
debt beyond that figure, The al
Tentative would be new taxes which
congressman are extremely reluct-
ant 10 levy In an election year,
There Is some talk OF impounding
relief and rivers and harborS appro-
priations 49, or parts OF them TO
prevent the debt going over the
limit. But that would be difficult
In an election year, too.
The sharpest congressional con-
test which also probably can be post
poned but cannot be avoided Is COM
Ing on the question OF credits TO the
Allies. They are doubly forbidden
now by the neutrality act which
puts our exports business TO bellig-
erents on cash and carry basis and
by the johnson act which forbids
credits 10 war debt defaulterS,
Three Already Barred
Great Britain, France and Bel
GUM are barred from credits on
both counts and Holland Is on a cash
basis because she Is billigercnt,
Chairman Andrew j. May OF the
House Military Affairs Committee
already has raised the credit issue
with q statement that;
I'VE ought 10 do everything we
can TO help the Allies.
President Roosevelt warns that
the German and ideologieally aligned
forces at work In Europe are headed
ultimately toward an attempt at
word conquest II they are not de-
feated. The temper OF congress Is
strongly pre-Ally Popular feeling
seems 10 be heavily weighted against
Germany, the Soviet Union and -
OH the Aslatic front Japan,
But majority sentiment has not
swung yet toward extending credit
as we'll as sympathy TO the Allies, a
blast OF congressional protest hit
Mays proposal.
II Is O fact, however, well known
TO officials that the Allies hope $50
perhaps expect financial help
from the United States when their
buying power here Is exhausted. II
Is estimated that France and Great
Britain can continue TO purchase
Mt the present rate for perhaps q
year. BY this time In i94i the ma
tional clamor and dispute over lend
Ing money 10 tho allies vii he ire
mendous, assuming that the war Is
not WIN or lost by that time,
Capital sim GrOggy
The capital still Is q bit groggy
from the suddennesS OF the German
movement into Belgium, Holland
and Luxembourg,
Saturday the President proclaimed
the neutrality act In effect against
Holland, Luxembough and Belgium.
simultaneously, Mr., Roosevelt made
public q telegram 10 King Leopold Of
Btlgium that he hoped In effect,
the German attack on Belgium
would be defeated.
Political realistS are wondering
about that question OF foreign
credits. When Allied funds are cx-
hausted the United States airplane
industry probably would suffer most
and first. But the Allies also may
need food and other materials, There
Is speculation her OF the possible
effect In the wheat and corn-hob
belts II the Idea got around that
high price markets for those prod
ucts would be available overseas -
provided the buyers could obtain
credit In this country,
Tobacco raisers who lost some OF
their valuable British market when
Great Britain made q deal for Tur-
keys political support and TO buy
up Turkeys tobacco, might be less