Evening star., 1941-01-28
ing 40 per cent Of 1t by heavy taxa

ing 40 per cent OF 1t by heavy taxa
ton.
The fall of France was a vital
factor in the drain of British assets,
Mr.. Morgenthau said.
"The French had at least as much
as the British in gold and dollar
assets in this country" he continued.
These resources were available, to-
gether with the British, to pay for
purchases here in the first nine
months of the war. When the
French collapse came last June, the
British took over all French con-
tracts in this country, although they
no longer had the help OF French
money to pay for them. British
liabilities were doubled. They were
left to face Germany alone. The
result was the British began to lose
gold and dollar assets twice as fast
after June as before"
The secretary was questioned by
Senator Vandenberg as to why Ca
madam dollar assets were excluded
in giving British dollar assets, and
whether their inclusion would sub
stantially increase the total.
Canada's Large Orders Cited.
Mr.. Morgenthau pointed out that
Canada itself is placing large orders
in the United States, and is also
assisting Great Britain by buying
back its own securities.
so I don't think the picture
would be improved by including
them" the secretary added.
The Michigan Senator indicated
he had no fault to find with the
separation, adding, Because I
think we have a definite RESPONSE
bility there"
Senator Vandenberg called atten-
ton to an article in the London
Economist last November to the ef-
feet England still had a NEST egg"
of accumulated gold in the Union of
South Africa to the probable amount
of 243,000,000 pounds, or $1,000 000,-
900. The article suggested if the
United States would buy that gold it
would give British further dollar
assets.
Mr.. Morgenthau replied that es-
innate does not check with the
Treasury's figures on South African
gold. He pointed out also that this
country is buying some of that gold,
as evidenced by recent arrival of a
gold consignment on an American
WarShip.
President Roosevelt was under
stood to have listened favorably
at last nights conference to Sug-
gestions that the bill impose a
tWo-year limitation on his lease
lend powers; that he make periodic
reports to Congress on his admins
tration OF the program. and that
the conveying of supplies to Eng
land be specifically prohibited.
Harmony Believed Goal.
M. Roosevelt has been repre-
sented by administrative leaders as
very desirous Of obtaining the bill S
enactment by substantial maJOrltleS
in both houses and with minimum
of bitterness. To secure this result.
he was said to be ready to accept
important notifications.
The White House conference
was interpreted as evidence OF
the administration desire TO OBJ
tain the fullest possible measure
of bipartisan harmony. Some
legislators also regarded it as a
conciliatory bid to Republicans who
complained that they were not con-
suited when the bill was drafted.
Those present agreed that the
conference had been purely ex-
ploratory in character. with no
agreements reached and no efforts
made to reach them. The purpose
was said to be better understand
ing of the legislation by all con-
cerned, and the exchange Of views
produced some intense discussion" "
Early House Vote Forecast.
During a discussion Of the par
liamentary situation, Speaker Ray
burn was reported to have promised
that the measure would receive
House approval not later than Feb
ruary s. The President also was
told the legislation would not be
long delayed by the Senate Com
mittee hearings.
Those present at the White House
last night were Senate Majority
Leader Barkley, Senate Minority
Leader McNary. Speaker Rayburn
House Mejority Leader Mccormack
House Minority Leader Martin anc
Chairman Bloom and Representa-
tive Luther Johnson, Democrat, oi
-