Evening star., 1948-01-21
Snyder May Ask
U. 5. Support for
European Money
Funds Would Augment
Billions Soueht,for
Marshall Plan Aid
MARSHALL, ROYALL insist AMG
is aiding recovery program.
Page "A.
BY the Associated Press

Secretary of the Treasury
Snyder said today Congress may
be asked to provide funds to
support the value of European
moneys. This would be in addi-
ton to the billions asked for the
European Recovery Program.
He did not say how much, but
told the House Foreign Affairs Com
mittee that the time will be pos
sibly" this year and probably" next.
1t will come, he said, when the
European countries are showing
progress toward steadying their cur
rencies by balancing their budgets,
increasing production and expand
ing trade.
The committee is holding hearings
on the so-called Marshall Plan for
four years of general economic aid
to 16 Western European countries.
President Truman has asked $6,800,-
000,00 to finance the first IS months
of the program.
Senate Hearings Continue.
On the other side of the Capitol
the Senate Foreign Relations Com
mittee also continued its hearings.
Representatives of the American
Legion and Veterans of Foreign
Wars were before it. They joined
in urging economic aid for Western
Europe to fence Russia off from re-
sources which might be pressed into
war against the United States.
The Senate committees hearing
was marked by an outburst of pro-
test from Senator George, Demo-
crat, of Georgia against what he
said was a tendency to base argu-
ment for the Marshall Plan on fear
of Russia.
Senator George said he is conf
dent no.war is likely, and added:
"The real hope of the program is
unification and integration of West
ern Europe to enable these Euro
pean countries to strengthen so
that they can stand on their own
feet"
Mr.. Snyder indicated before the
House committee that the proposed
funds to support European curren-
cies would be loaned In the form of
gold and dollars provided by this
Governments sterilization fund to
the central banks of European coun-
tries.
This. he said, would give greater
assurance to the people of the
participating countries" that the
correction of their current money
troubles will be permanent"
Committee Studies Problem.
Secretary Snyder suggested the
United States might undertake to
help those countries desiring to get
control of some assets their citizens
have in the United States.
The possibility, he told the COM
mittee. is under study by a Govern
ment committee.
But the Treasury chief opposed
forcing" European countries to use
the dollars and gold their citizens
own in the United States to help
pay part of the Marshall Plan costs
He said 1t would be folly" to do so.
He estimated that the Marshall
Plan countries had $4,000, 900 900 In
dollar assets in this country last
June 30, but said some of these as
sets are already pledged for loans
and many others would be difficult
to liquidate."
Mr.. Snyder suggested that S per
cent of the Marshall program funds
should be set aside to guarantee
private American firms that foreign
currencies they earn through invest
ing abroad can be exchanged for
American dollars.
O'Neil Testifies.
James F. O'Neil, commander of
the American Legion, told the SEN
ate committee that failure to put
the Marshall Plan into effect prob
ably would result in Communist
control of all Europe.
"It would marry the manpoWer
and natural resources of Eastern
Europe to the industries and indus
trial efficiency and skill of the West
iSee FOREIGN AID, Page A-4.)