Evening star., 1942-02-03
By the Associated Press.

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assistance going beyond in amount
and different in form from such
aid as Congress has already au-
thorized."
To Bolster Economy.
Speaker Rayburn said only This
ought be be good news to China"
Other members said privately
there was an apparent need to
bolster Chinas economy" stabi-
lie its currency and help finance
the war against Japan.
One report said the news of the
appropriation might be aimed to
counteract recent Japanese propa-
ganda that the United States and
its allies were not extending ade-
quate aid to China.
Once enabling legislation is ap-
proved by both Senate and House,
the actual appropriation probably
will be included in an omnibus war
deficiency supply bill.
The China war loan was one of
several bills now being rushed in
Congress to speed the war effort.
Meanwhile, imminent passage by
the Senate of legislation to create
within the Reconstruction Finance
Corp. a 81 ,000, ,0O0, 900 War Damage
Corp. to insure property against air
raid or other loss from enemy ac-
ton was predicted.
The measure would authorize free
insurance against war damage I'D
to $4,000. Beyond that, a reason
able premium would be charged.
Senate Passes Navy Bill.
On the House floor, quick ap-
proval was expected for the $685.
495 ,265 ,474 naval appropriations bill,
passed by the Senate on q voice vote
yesterday with more than $6,OOO,-
5000 added since the measure
originated in the House.
The Senate gave its approval
after Senator Overton, Democrat,
Louisiana asserted the attack Sun
day on Japan's mid-Pacific Mar
shall and Gilbert Island bases was
only the opening gun In an ofien-
sive that might find American gar.
risons all over the world, fighting
on every continent except their
own.
The bill would provide approxi-
mately $4,000, ,000. 900 for new air
planes and a like amount for ships,
In addition to 5000, 900, 900 for
maintaining the fleet.
Republican Leader McNary, in
terrupted Senator OvertonS ex-
planation to inquire why the COM
mittee found it necessary to add
$6 .000, ,000. 900 to the total approved
by the House week before. Sena-
tor Overton replied that some of
the estimates were made before the
japanese attack on Pearl Harbor
and the Navy had been busy bring
ing them up to date since.
Vandenberg Raises Tax Question.
Senator Vandenberg, Republican,
of Michigan, said that while he
favored the appropriation, it was
just as necessary to pay as to spend.
He remarked that the pending bill,
considered with q $l2,55O OOO. 900
Army bill last week, brought cash
appropriations and contract au-
thority up to about $50, 900 ,0O0, 900.
Something had to be done at once,
he declared, about enacting new
taxes.
The necessity for some assur-
ance of protection seems not open
to question" the Senate Banking
Committee said yesterday in asking
approval Of the r. F. c. insurance
bill
1T appears to be proper that the
protection against such losses should
be undertaken by the Government
for the reason that such coverage,
the extent and probability of losses
being unpredictable, cannot salts
factorily be assumed by private in
surance carriers.
Also, it seems appropriate for the
Government itself to undertake the
program because the cost of such
protection-pertaining solely to cat
astrophic results arising from q
common national cause-should be
borne by the Nation at large Just
as the cost of a battleship or of
a bomber would be. rather than that
such cost should be borne by the
comparative few who might be i'm
mediate victims"
Taft Emphasizes Limitation.
Senator Taft, Republican, of
Ohio of the Banking Committee
said that discretion would be left to
the Federal loan administrator to
refuse to insure certain types of risk.
Senator Taft said he himself would
make it plain on the Senate floor
that the insurance was not intended
to cover damage from enemy occu-
patton as opposed to bomb or shell
damage.
Besides providing for war damage
insurance, the bill would add $780,
100000 to the borrowing power of
the r. r. C.f chiefly for war-pro-
duction purposes. Committee mem
bers said this would bring the total
borrowing s-and therefore, lending