Evening star., 1940-01-14
Roosevelt Farley
To Study Question
Of Loan 10 Finland
President and Democratic
Congressional Leaders
To Confer Tomorrow
BY the Associated Press.

BY the Associated Press.
Assurances came from the White
House yesterday that the question
of possible financial aid to Finland
would be threshed out tomorrow
when President Roosevelt confers
with Democratic congressional lead
ers.
At the same time, there were re-
ports on Capitol Hill that the Treas
ury would advise that from the
purely fiscal standpoint, there were
no objections to a loan. The opin-
ion of Secretary Morgenthau and
of Jesse Jones, Federal loan admin
istrator, have been asked by the
Senate Banking Committee.
The White House made known
that Mr.. Roosevelt would seek to
clarity the Finnish question after
noting reports of some differences
of opinion over whether the Execu-
tive or the Congress should take the
initiative.
Mr.. Roosevelt said Friday he had
asked congressional leaders to work
out the problem on a rlon-partisan
basis. Several of the leaders prompt
ly expressed the view that it was a
matter of foreign policy, and should
be decided initially by the Chief Ex-
ecutive and the State Department.
Sterilization Fund Suggested.
In connection with the Treasury's
study of the question, there was one
report in well-informed circles that
officials were discussing the possi-
bility of loan from the $4,000, ,000,-
900 stabilization fund.
1t was pointed out that if money
were taken from this fund, the ad-
vance would have no effect on Mr..
Roosevelt's budget estimates.
The Treasury was asked for an
opinion specifically on bill by
Senator Brown. Democrat, of Mich
!gan to grant Finland a $50 0,0O0, 900
loan which could be used for any
purpose, including the purchase Of
arms
Well-advised authorities said the
Treasury probably would advise it
had no fault to find with the legis-
lation, but that the question of for
eign policy WIS one for the Congress
to decide.
1t was learned that the question
OF aiding the Firms was touched on
at last Mondays conference between
Mr.. Roosevelt and his legislative
leaders.
Precedent Feared.
One reliable informant reported
the congressional lieutenants told
the President then they were con-
cerned primarily with keeping the
United States out of war, and felt
outright aid to Finland might place
this country in position where it
would be obligated to help every
small nation which became the vic
tim of aggression.
Some were said to have suggested,
however, that it might be possible
to grant Finland an additional $l5,-
100000 loan for non-m military pur-
poses, A s10,O00,0O0 loan of this
nature already has been granted by
VIZ chPol le-4IilpOIt odIlk.
The proposal for the $50, 1000 900
loan was opposed by seven peace
organizations. which asserted in a
statement last night that it would
be plain violation Of the spirit and
intent of our neutrality law"
The Presidents greatest service
to Finland will be in using his in
comparable influence to stop the
fighting in Europe on every front
and bring about, in cooperation
with other neutrals. the earliest pos
sible mediation looking to just and
lasting peace" the statement said.
1t was issued by the American
Friends Service Committee, peace
section; the Fellowship of Reconcil-
lation, the Keep America Out of
War Congress, the National Council
for the Prevention of War, World
Peaceways, the Womens Interna-
tional League for Peace and Free
dom and the War Resisters League.