Evening star., 1941-01-15
House Unit Told
OF Needs for
War Orders
England Said to Be
Unable to Make
Ample Purchases

Great Britain does not have the
dollar assets to finance adequate
future war orders in this country,
Secretary of the Treasury Morgen-
thau told the House Foreign AT.
fairs Committee this afternoon. tes-
tifying on the bill to vest broad
power in the President to lend or
lease materials to England or other
countries fighting aggression.
Mr.. Morgenthau declared:
I'm satisfied they can pay this
year for what they have already
ordered but when it comes to find
ing dollars for anything like what
they need, they just haven't got il
He made the statement in answer
to committee questions after pre-
senting financial report obtained
from the British Purchasing Com
mission. 1t showed that the amount
to be paid during 194l on orders
placed before January l will be ST.
274000,000. To this should be added
$3.50 100000 of American imports
not purchased through the British
commission. making the total ST.
554000,000.
Dollar Assets Listed.
The total dollar requirements for
all transactions for this wear was
given as s3,019 100000 This total
was reached after including $685.
100000 of purchases by empire coun-
tries other than the United King
dom and Canada from the United
States and purchases by empire
countries other than Canada from
areas outside the United States.
AS against these 1941 obligations
on orders already placed in this
country, Mr.. Morganthau pre-
sented another statement showing
the United Kingdoms available
dollar assets at the beginning of
194l. 1t consisted of the following:
Gold in the United States or on
the way, s205.o0O ,0OO official dollar
balances. $4,000 600; American Sc
curities reported by the British as
of January 6, s616 900 900: direct
and other investments. 5000 600 900
Total dollar exchange assets, ST.
IT'S. 90 900.
Mr.. Morgenthau took the stand
late in the day after Secretary of
State Hull had made a strong de-
fense of maximum material aid to
the victims of aggression.
Questioned by Fish.
Representative Fish. Republican
of New York, questioned Mr.. Nor
genthau about Federal Reserve
Board report. which the Represen-
tative said indicated Great Britain
had something over $1,000, 900 900
worth of assets that could be trans
ferred to this country.
The Secretary of the Treasury
said he wanted to point out the
figures in that report related to
August. 1899, before the present
war started. The Secretary said he
did not believe there was any con-
f1ict between the report and the
figures he had presented as of the
present time.
Just before Mr. Hull left the stand,
Representative Rogers. Republican,
of Massachusetts, sought to tun the
discussion to the possibility of a ne
gotiated peace, by asking if the
State Department has considered
that possibility.
Chairman Bloom and other mem
bers promptly interrupted to object
to such questions, and the Secretary
OF State interrupted to suggest that
no doubt all committee members
would agree that question should
be discussed in executive session.
The chair sustained the objection
of one of his colleagues to pursuing
that question.
Clash Over ENJOYS Testifying.
There was a brief clash between
Chairman Bloom and Mr. Fish when
the chairman objected to Represen-
tative Bolton. Republican, of Oh:o
asking if Secretary Hull has any
objection to former Ambassadors
Kennedy, Bullitt or Wilson testify
ing on this bill.
Mr.. Bloom broke in to declare
that is for the committee to decide
and that Mr.. Hull should not be
called on to comment on it. Mr..
Fish insisted it was proper uues-
ton.
Secretary Hull ended the ex-
change by announcing the question
did not embarrass him. Then he
added:
These gentlemen have a per-
feet liberty to exercise their own
judgment. They are charged. of
course, with some degree of discre-
ton in talking in public. I'm sure
you would cooperate with them in
keeping off subjects that ought not
be discussed in public"
Secretary Hull indicated during
his testimony there would be no OBJ
lection to placing a time limit on
the power being delegated to the
President in the bill
Cross-examining the Secretary
at the afternoon session, Represent
ative Stearns, Republican. of New
Hampshire asked the Secretary for
his reaction to an amendment lin
iting the life of the act.
Il haven't heard of any one Of
fering objection to that particular
suggestion" Mr.. Hull answered.
British Views Sought.
Representative Rogers suggested
(Ca1 rNr~