Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-12-05

Continued From First Pageo
some suggestions by some members
of Congress that Sir Frederick APP
pear before congressional commit
tees with his data on British
finances, the Secretary said, 81
haven't had chance to think
about it."
Mr.. Morgenthau's announcement
to reporters that he considered the
British good risk" was briefly put
Some one asked whether he agreed
with statement made yesterday by
Mr.. Jones, who is Commerce Secre-
tary as we'll as loan administrator
that the British were a good risk.
Mr.. Morgenthau said yes"
Meanwhile, at the Capitol, Sem
ator Clark, Democrat, of Missouri
demanded that Congress look care
fully into the very large resources
of the British Empire" He said he
was very much startled at Mr..
Jones ''good-risk" statement in view
Of Britain's default on World War
loans.
Senator Taft, Republican. of Ohio,
a member of the Senate Banking
Committee, declared Secretary Nor
genthau would be guilty of usurpa-
ton of authority and breach of
trust" If he carried out an an
nounced plan to aid China's Chung
king government with funds from
the $4,000 100000 sterilization fund.
He also told reporters he was open
minded" on the question of flnan-
cial assistance to Great Britain, but
II was nonsense" to call Britain a
good risk"
Meanwhile, Senator johnson, Re-
publican, of California foresaw an
imminent drive for repeal of laws
now barring loans to Britain and
announced in San Francisco he
would fight 1t to the last ditch.
Barring a miracle, he said. there is
no doubt that the United States will
60 to war"
Georges Statement Recalled.
Significance was attached in some
official quarters to the fact that an
nouncement of the Morgenthau-Sir
Frederick talks conceded with a
seemingly unconnected statement
by Senator George, Democrat, of
Georgia that the Nations industry
should be placed on 24-hour war
time" schedule If aid was to reach
Britain quickly enough to be effec-
tive.
AS chairman of the Foreign Re-
lations Committee, Senator George
is in a position to obtain confiden-
tial information on Britain's present
position and his suggestion conse-
quently caused speculation. He
spoke only of material aid and not
of loans.
Secretary Morgenthau yesterday
gave only the broadest indication
of the ground he would cover with
Sir Frederick. He said merely that
the British expert was here ito place
the latest available information ION
British finances) before the Treas
ury.'
The two men are no strangers.
They conferred on monetary prob
lens before, once in September,
1887, and again in July, 1910.
Sir Frederick gave scant encour-
agement to speculation over loan
possibilities when he arrived in New
York yesterday by clipper en- route
here.
England's financial condition, he
reported, was never stronger"
Asked if he came to discuss credits,
he replied That is a stage further
on"
AS for his special mission, he said:
II anticipate that they lin Washing
tom will want to know the general
facts of the financial situation,
which I shall give them"
Senator Nye, Republican, of North
Dakota, who has registered opposi-
ton to any British loan, said today
that Congress ought to have the
facts first hand before it was called
on evensto consider any relaxation
In the present Johnson Act and the
Neutrality Law, both of which pro-
hibit loans to Britain-with one pos
sible exception.
One way to get the information,
Senator Nye suggested, was to in
vite Sir Frederick or other British
officials to appear before some con-
gressional committee empowered to
inquire into the situation.
Two Senators Suggest Gifts.
Senator Capper, Republican. Of
Kansas, also Endorsed the idea that
the British Ought to have an OPP
portunity" to present their view
point directly to a congressional
committee.
Such a procedure would be de-
cidedly unusual for available records
show no precedent for officials of
foreign nation participating in
congressional inquiry.
Two other Senators, Van Nuys,
Democrat, of Indiana. and Ball, Re-
publican, of Minnesota, declared that
II financial aid goes to Britain, it
should be as a gift" instead of a
loan. Senator Ball said loan
would be "hypocritical" because it
would not be repaid. He reserved
opinion on whether financial help
should be given.
Senator Van Nuys, favoring an
exhaustive study" of British assets
before any decision, saw no imme-
diate chance of modifying the john
son Act or Neutrality Law. Senator
George also is known TO favor a
thorough study preliminary to any
action.
Senator George, if talking to re-
porters, said:
THE supreme need at this time
Is to step up the whole defense pro-
gram from a peacetime effort to a
wartime effort. 1t is difficult for
us to realize that we are not yet
doing that. We do not seem to
sense the pressing need for even
greater and faster production than
we are getting-and that is not
criticism of the defense program
Is far as it has gone"
The institution OF 24-hour day