The Waterbury Democrat., 1941-01-28

the WAT udu DCcl d oCNSAN AAAAesAA~@s@A blow to Britain.
 Vandenberg concluded his ques- tioning of Morgenthau after bring ing out that the administration bill, while designed primarily to lend and lease materials to Great Brit ain, does not require repayment.
 The Michigan senator asked whether the purpose of the bill could not be accomplished by a simple amendment to the Johnson and Neutrality Acts. Morgenthau asked Treasury Counsel Edward H. Foley to reply to that question.
 Take Too Long
 Foley said that mere extension of dollar credits for purchases Of war materials here would mean that it would be months and months before the materials or dered would be coming off the as- sembly line" The measure now be- fore congress authorizes the presi- dent to make available materials already on hand if he deems it ne- cessary, he added. ..
 Haven't the British placed all the orders on which they can get delivery this year?" Vandenberg asked Morgenthau.
 No" Morgenthau replied.
 "No?" Vandenberg repeated sThat's encouraging"
 Sell All They Own.
 Morgenthau said the United Kingdom would have to sell every share of U. s. Securities they own and all the property they own i'll the United States within the calen- dar year" to meet present obllga- tion of $1 400 000, 900 that represents materials ordered in this country.
 Vandenberg then directed his at tention to the estimated $4OOOO00, 900 worth of British holdings Ill Latin American countries. He asked whether these properties might De used as practical collateral for fur ther loans" from the United States.
 Morgenthau said that they could be so used, if Congress deemed IL wise. but he questioned how great the value would be.
 In reply to question from Sen- ate Democratic Leader Aloen w. Barkley. Morgenthau said that the $4 .OOO 100000 valuation was the ssface value" and that the true value probably would be less.
 Morgenthau appeared before the committee to support the admin istration's all-out British aid bill following indications that four amendments to the measure-m- cluding ban on the use Of United States naval vessels in convoys- may. be adopted before it is finally approved by Congress. The sug- gested changes were discussed at a bipartisan White House confer ence last night.
 British Commitments. Morgenthau'S testimony was largely a repetition of that pre- yiougly given the House foreign af- fairs committee. He pointed out that British commitments here now amount to $l,4O0, 900 compared to Sl.811,OOO 900 in gold and dollar exchange assets which the Brush regayd as available for purchases in this country"
 Morgenthau said that the war is costing the British government more than 100000 pounds ($4S,00O, ,0OO) day, approximately 50 per cent of the national income.
 He said that the collapse ot France last June caused British gold and dollar assets to dwindle twice as fast as before.
 He pointed S1s ta&t besides tak- ing over French commitments ln this country-thereby doubling their liabilities-the British lost the use of French assets, which were "at least as much" as the British them selves had.
 As a result of this drain, Morgen- thau said, British daily expenditures have risen past the $12O0O, ,0O0 mark and are steadily mounting"
 British Resources.
 Morgenthau presented tables of British resources and which he pre- viously had submitted to the House committee. The principal table gave the following picture of United Kingdom gold and dollar exchange assets as of December 31, 194O: Gold .................. .S1S1,uoO,uoo Official dollar balances 54,0OO,0OO Private dollar balances 305 900 900 Marketable U. s. Securi-
 ties ................. o4o,VVV'Voo Direct and miscellaneous
 investments in U. s. .. 9000O0 900
 Totals .............$z $z, UOU,uuO ! Of that total, Morgenthau said, the British exclude as unavailable" the $305, 100000 in private dollar balances which they regard as nec- essary for the conduct of business. They likewise regard as unavailable $3O, ,0OO,0 of gold scattered in va rious parts of the world and $21,- 900, 900 on account of foreign ex- change contracts. When these items are Subtracted, the British have $1,811 100000 in presently available assets to meet present obligations and future com- mitments, Morgenthau said. "The problem before us IS not whether the British have resources, he said, "of course, they have, all over the world. The problem is whether the British have got the dollars they need to spend in this country"
 Gross Examiner Opponents of the administration bill selected Sen. Arthur H. Vanden- berg, R., Mich, for the principal cross examination of Morgenthau. When Morgenthau concluded his prepared statement, Vandenberg said he wanted to explore" the Brit | ish asset figures but did not want | to argue whether the British should | be given credit. Vandenberg sr,;ed why Canadian assets had been excluded from the | British empire balance sheets. "The Canadian government has not raised the question of whether they can or cannot make additional purchases here, so I saw no pur- pose in making public their dollar purchases here," Morgenthau re- piled. He said the British had