WAR DEBTS

Hokitika Guardian, 18 November 1932, Page 5

WAR DEBTS

NO MORATORIUM

IS THE FEELING OF AMERICA,

I (United Press Association —By Electric Telegraph—Copyright.)

'NEW YORK, November 16. . The New York “Times’s” Washington correspondent states: “President Hoover indicated to-day that he would

not recommend to Congress the suspension of the war debt payments on December 15th. It is said that this decision was reached after the President had 'been informed of the almost unanimous opposition among the members of Congress to the proposed moratorium.” President Hoover will not even: move

for the revisal of the debt funding

commission to study the- capacity of the debtor nations to pay unless the President-elect, Mr 'Roosevelt, in 'hts 'forthcoming conference with the

President, favours such a course, . No

programme will, in fact, be proposed unlees it is acceptable to, Mr Roosevelt. It is intimated that Mr Hoover null insist that the 'December 15th payments should be met before he will consider submitting any suggestions to his 'successor for the creation of a Commission to consider a revision of the debt funding terms. „ President Hoover to-day reiterated that he is opposed to debt cancellation, but he expressed the 'belief __ jthat the •United States would obtain* at commercial advantage if the debts' were reduced.

It ig understood that th e President told Senators to-day that, he was very much surprised that the foreign countries 'should ask for suspension this time, holding that his case . would have been better received by, Congress i f they had asked for a relistudy , and had not made a reJstudy follow upon a suspension.

Democratic Senators re-affirmed their belief to-day that the new Administration will prefer to throw the debt question into the international conference which will consider reciprocaltariff treaties and other economic factors, as aids to a world recovery.

The suggestion that the United States should grant a further, moratorium bps led to a movement apaong the farmers and other-debtors in this country for similar concessions in their private and semi-Governmental debts.

Senator Fess said: “It would open the way for a. general move by our own people in 'demanding concegT Bions in the case .of the debts they have contracted with the federal rand banks, the home loan 'banks, and the reconstruction finance corporation. The foreign nations by in'ectirig this problem into our democratic,.situation at this inopportune -time, have firtbartaised this Government,".,.. ... .

Important private .. ..pronouncements on the war debt situation .pame to-day from Mr Louis Zaber, • the h«ad of the Nilional Grange, the most important farmers' organisation in America, and Thomas Lamont, of the J. P. Morgan Company. The former advocated th e pronouncement of the collection of the interest charges for a brief period and a limited reduction of products. The latter declared that ..the .. debts ‘“"were a (perfectly - just, . but impossible” payment, and would., choke the channels of world trade.