Evening Star Newspaper, June 22, 1931, Page 4

THE EVENING STAR, WASHINGTON, D. . C., MO DAY, JUNE 22, 1931 WIDESPREAD OPTIMISM AWAKENED BY HOOVER DEBT DELAY PLAN| DEBT DELAY PLAN REPLIES AWATTED Diplomatic - Circles - .Fear France’s Response to Hoover Message. ‘BY CONSTANTINE BROWN. President Hoover’s move for a repara- tions and debt holiday is belleved to have been hastened by the receipts last Thursday of alarming confidential re- ports from Germany to the State De- partment and careful examination of dispatches from Secretary Mellon, who last week is said to have_thoroughly discussed the matter with Prime Min- ister Ramsay MacDonald in London. Thursdays are set aside by Secretary of State Henry L. Stimson and Under- secretary of State Willam R. Castle, jr., to recelve representatives of foreign nations. Sees “Forest Fire.” Last Thursday Mr. Stimson was par- ticularly worried over the situation in Germany, which he ccmpared with a “dangerous forest fire.” Reports had reached the State Department that the flight of capital from Germany was pr ding at an alarming pace. He e‘(fised his concern to French Am- bassador Paul Claudel and stated that the time had come when the principal nations of the world would have to act to prevent a catastrophe, which ap- peared inevitable if Germany's eco- nomic structure were allowed to col- lapse. After consulting with President Hoover, who had just returned from his trip to the Middle West, Secretary Stimson Friday afternoon summoned the Ambassadors of France, Germany, Great Britain and Belgium. He in- formed the diplomats in the strictest confidence of the President’s desire that they advise their respective govern- ments of his intention to ask Congress 10 agree to a year's suspension of all debts and interest payments, excepting commercial debts, if, in turn, the Euro- pean countries would agree to a year’s suspension of all reparations payments under the Young plan. Mr, Stimson emphasized the fact that this would not mean in any way an all-around cancel- lation of debts and reparations, but merely a postponement of payments to give Germany a breathing spell. Favorable Response Likely. The Ambassadors informed their goyernments immediately of this im- portant step of the President. In diplo- matic circles it is felt that most of the natlons will reply satisfactorily to the President’s appeal. The only exception may be France. Great Britain, which turns over to this country virtually all payments from her former allies and Germany, is ex- pected to receive the American proposal enthusiastically. It is stated in well informed quarterg t this matter was thoroughly discussed last week between Secretary of the Treasury Andrew Mel- lon and Prime Minister ay Mac- Donald, Foreign Minister Arthur Hen- derson and Chancellor of the Exchequer Philip Snowden. It is further said that the President was encouraged to make his’ proposal after a careful examina- tion of dispatches received here from Mr. Mellon, who is still in England. ‘The attitude of Italy is unknown, but indications are that Premier Mus- solini will have no objections to Presi- dent Hoover’s plan, even if it may slightly hurt Italy’s finances. The great unknown is France. That country stands to lose more than any other European country by the com- plete suspension of reparations pay- ments. France pays next year to the United States something like $32,000,~ 000 and has to receive from Germany approximately $110,000,000. This figure alone is sufficient explanation why & good deal of opposition must be ex- pected from France. In addition to this, one must take into consideration public feeling in Prance, which is reported to be less friendly toward Germany today than it was e few months ago, and also the fact that Aristide Briand’s position and prestige in the cabinet and the coun- try are much impaired. In spite of these obvious difficulties, the feeling is that France cannot easily afford to turn down President Hoover's proposition. To begin with she cannot assume the moral responsi- bility of being the cause of Germeny's complete breakdown. Secondly, even the most inveterate anti-German poli- ticlans in France have reluctantly reached the conclusion that in the presence of the dangerous economic de- pression something must be done to prevent & catastrophe, which would injure France as much as it would the rest of the world. ‘Would . Postpone Some. France, it is said here, would prefer Gérmany to obtain a moratorium in accordanceé with the Young plan. That moratorium would apply only to the conditional payments, while the uncon- ditional payments of the reparations would continue to be paid to the Bank for International Settlements at Basel to tributed in_accordance with the agreements reached at Spa and revised at The Hague Conference. But President Hoover favors a vclun- tary suspension of all payments. Thus France would have to renounce for one year all payments she is entitled to receive from Gerrsany. This would mean, of course, a heavy sacrifice for France. Whether she will agree to this unconditionally is uncertain. ‘Well informed persons, however, con- sider it likely that after a . certain amount of haggling the French govern- ment will accept President Hoover's proposal in some modified form. First of all, France is today, after the United States, the richest and most prosperous country in the world. Furthermore, it is said that if France is willing to agree to a moratorium for a°year, there is no real Teason why she should oppose a suspension of payment. ‘The difference between the sums she has to forego by the moratorium and the complete suspension of payments is not sufficiently appreciable, when one considers what is at stake today if she maintains an adamant attitude. (Copyright, 1931.) A CANADIAN BANKER SEES HOPE FOR DEBT PARLEY Sir Thomas White, War Minister of Finance, Tells Approval of Plan f‘or Delay. By tfie hssociated Press. ‘TORONTO, Ontario, June 22.—Sir ‘Thomas White, Canadian war-time min- ister of finance, tonight expressed ap- Dproval of President Hoover's proposal to postoone intergovernmental debts, rep-. arations and relief debts for one year. Such a step, he said, would mean the “beginning of the end of international war debt obligations,” which he char- acterized as a “drag” on international trade it cannot withstand. #*Herbert Hocover deserves the high commendation of all well-wishers. to humanity for giving, by his action, & ‘whole year precious time in which educate public opinion on all these SENATE FINANCE MEMBERS * FAVOR DEBT SUSPENSION Bingham and King Say Reparations Ad- justment Is Necessary to Economic Stability. While it is believed that Congress will act favorably on President Hoover's plan- ear's suspemsion of —war ,, rent that there will Jor ‘a glvme s, it is app e_difference of opinion regarding, the Jorm this “relief for European mations will take. is is evidenced in the distinct views 0 ading members of the Committee on blicas william Their 't of Democrat, o) Tollow. Connecticut, and 1 'Utan. Xing, statements BY SENATOR HIRAM BINGHAM. It seems to me that it would be un- fair to ask the American taxpayer to shoulder a much larger burden of the costormemomnw‘rmmheul doing today. The debt settlements that _were made with Eyropean gov- ernments glvere‘ with the possible excep- tion of that made with Great Britain, very liberal in their terms. In fact, our settlements with France virtually forgave all the money loaned to France before the armistice. There- fore, I am opposed to cancellation of the warddeb;; or of their reduction. But on the other hand, it is quite ob- vious that during the present world de- pression it would be extremely unwise fo refuse to enter into negotiations with the debtor countries looking toward a postponement of m‘e gny of payment til a more convenient season. II!LA‘ a matter of fact, in the settle- ments made with France and Italy we did grant them the privilege of ‘sus- pendnig settlement for & period of two years. It is my impression that this was not done with the settlements of the other countries. There is no clause permitting a volurfary moratorium in our settlements with Belglum, Ruania, Czecioslovakia and other countries. Moratorium Favored. It would seem to me to be the part of wisdom for all countries to grant a moratorlum on international pay- ments at this time. I believe that there would be no serious objection in Con- gress to such a moratorium provided it were agreed to by Germany's creditors. To be sure, this would put & small ad- ditional burden on the taxpayers of the United States, because the Gov- ernment would not then receive the payments due us during the next year or_two. In view, however, of the general de- pression throughout the world, it would seem the part of wisdom not to press for settlements those debtors who are having great difficulty in meeting their obligations. ~ BY SENATOR WILLIAM H. KING. More and more the world is becom- ing a unit, and the interests of one be- come the interests of all. There is no place for the isolationist and individ- uald who seek the adoption of narrow and provincial policies. The Eolmcnl and economic policies of Russia find repercussions throughout the world. reparations ques- tion becomes more and more s world question, and the people are - ning to perceive that it is insepa- rably interwoven with the economic, if not the political, structures of na- tions. Indeed, po- litical questions, in the last analysis, are_economic. ‘The world is over- whelmed with debt and its burden con- s'-ihnll':a a m:‘n:# Senator King. to ace e world. l”!:ven the United States bows beneath the burden of more than $150,- 000,000,000 of indebtedness. Of this stupendous _sum, the Federal Govern- ment and the States and their political subdivisions owe more than $36,000,- 000,000. There are nearly $40,000,000,000 of indebtedness resting upon the farms and real estate of/the people; corpora- tions owe nearly $50,000,000,000, and the banks and investment companies have obligations amounting to more than $41,000,000,000. Thege is & mountain of private in- debtefiness, represented by notes and other! forms and obligations. The nations of Europe are staggering beneath the heavy weight of debt. It is obvious that maturing obligations— private, corporate and national—cannot be met; and the mutterings of discon- tent among the debtors throughout the world grow louder and more sinister. Frequently there are heard voices de- manding repudiation. Mexico and Cuba are submitting requests to the holders of their securities for concessions and for moratoria. Like Prometheus of old, the European nations have been chained to the rock, and their bodies are being torn, if not devoured, by creditors who press for the payment of their obligations. Effects Disastrous. The psychological effects of debt, both upon individuals and nations, are disastrous. It often results in individ- ual despaif and in national disturb- ances, if mnot revolutions. Among ancient Israel there was a 50-year ju- bilee which marked the remission of ob- ligations. It is a Utopian dream,-no doubt, but what a weight would be ifted from the world if nations could #from the prison house of Senator Bingham, be_rel o et S atter uggestions were mad® soon the World -War that there be a can- cellation interesse of the war debts. If that had been done and an_interna- tional bank had been established to facilitate exchange and a spirit of co- operation, and helpfulness had mani- fested itself among all nations, a new day would have dawned and a spirit of world fellowship would have been de- veloped. Undoubtedly Austria and Germany are beset with dangers of a most serious character. Disaster to these countries would have reactions harmful and, in- deed, dangerous, in other countries. The situation throughout the world would today call for a spirit of co- 0] tion among nations and requires s&rt;mlnshlp of a high order. The question of reparations and inter- allied war debts is a burning issue at pressure upon debtor nations. averse to the United oratorium to Ger: may be be glad to sup- that rtant problems,” Sir Thomas said. Sir Thomas, who.is Canada’s leading ‘benker, expressed the belief fhat an in- | ternational conference wl.lih. be beld within years to ~ < port any- reasonable proposition will alleviate the present situation and safeguard nations from internal dis- turbances that might threaten the peace of the world. It is an that the unsatis- B Tand Jmandisl eendi- N tlons of the world reveal the fact that the gold standard is wholly inadequate to support the credit and currency’ systems. of the world. (Copyright, 1931, by North American News- paper Allisnce, Inc.) DORAH FEARS “DISASTER.” Idaho Senator Thinks Debt and Arms Cut Will Prevent Trouble. BOISE, Idaho, June 22 (#)—The Idaho Statesman, in a copyright story, quotes Senator Willam E. Borah of Idaho, chairman of the Senate Foreign Relations Commit- tically reduced and Tead- ply day of disaster.” Borah's state- menf “It ‘'has been clear to me from the beginning that Germany could not pay the reparations assessed against her. They will have to be readjusted. If genator Borah. a moratorium is granted it will give time to see the situation as it is and time to adjust matters. “I feel that the moratorium ought to be limited to one year. If within that time armaments are drastically reduced and reparations readjusted re- covery might well follow. But without disarmament and_without readjustment of reparat ;" moratoriums simply postpone the day of disaster. McKELLAR CITES DEBT BURDEN. MEMPHIS, Tenn., June 22 (#)—Be- fore approving President Hoover's pro- posal to suspend payment of war debts for a year, Senator Kenneth McKellar of Tennessee, issued a statement last night saying he would have to see e benefits of the proposal to “our own sorely dis and overburdened people.” Expressing his “kindllest feelings” toward Germany and Great Britain and other nations, Senator McKellar said his “first thought is for America and American people.” “Our people were never harder up,” he continued. “Our Government, with a deficit of nearly a billion dollars for running expenses, was never harder up. ‘Would we be justified in adding another quarter of a billion to this debt?” “The burden of our taxes, State, county and city, was never heavier. Sev- eral million of our people are out of employment. Others are at work part time, others at reduced pay. How are we to be benefited by this gift to other peoples? If we give up this $246,000,000 which the world concedes to be justly due us, we must ma¥: it good by put- ting additional tax burdens upon our own people.” o MADRID HAILS PROPOSAL Hoover Debt Plan Draws Acclaim From Conservative Press. MADRID, June 22 (#).—President Hoover’s plan for a delay in payment of war reparations received a favorable echo in the Madrid press today. ‘The Conservative daily ABC termed the proposal “a most important ges- ture” and said it undoubtedly would be a big step toward solving the interna- tional depression. ARGENTINA FAVORABLE Comment of Officials Approves Hoover Plan for Debt Delay. BUENOS AIRES, June 22 (#).— Authoritative circles commented fa- vorably today on President Hoover's suggesmm for a postponement of war debts payments, sa; it not only would help Europe’s recovery, but would unp]r:ve conditions throughout |the world. Newspapers published the full text of the Hoover announcement. SCHOBER FAVORS DELAY VIENNA, June 22 (#)—Dr. Johann Schober, Austrian foreign minister, characterizing President Hoover’'s mora- torium offer as a “noble and important action,” asserted yesterday that if MARKETS ADVANCE ALL OVER WORLD =5 2 Suspension of Debt Pay- ments IQproves Confidence to Industry. (Continued From First Page.) to $3 a bale. Other commodities re- sponded with less spectacular gains, It was a wild opening on the Stock Echange. Shorts, badly pinched by the feverish advance with which last week's trading was concluded, were thrown into renewed confusion by Mr. Hoover's week end announcement. Blocks as large as 20,000 shares changed hands at advances running up to $15, and there was no’ let-up in the pace until the first half hour had been passed. The turnover during that period was 2 million shares, Not in a long time had the market & trading day with so violent a rally. ‘When the first frenzied demands of the shorts had been satisfied, profits began to be taken quickly, and reactions of a dollar or two from the early highs devel.?ed However, the momentum of the advance was not so easily lost and by early afternoon another upward drive was in progress, although this, too, encountered a reaction as traders hastened to accept fat profits. Steel Soars $4. United States Steel common and American Telephone soared $4 a share. Union Pacific, Eastman Kodak, Lacka- wanna, Public Service of New Jersey, Norfolk & Western and American Smelting climbed $4 to $5. Auburn Auto, whose $15 opening advance took the_day’s prize, moved back in the di- rection of its top price after half of the initial advance had been lost. Many {ssues rose $2 to $3, including General Motors, which had operfed $2 higher on_a 20,000-share block. ‘The rise in German bonds listed on the New York Exchange was substen- tial, although not quite as large as last Saturday’s when the first rebound on the Washington news occurred. Never- theless, the young plan 5%s, floated about & year ago, gained more than $20 per $1,000 bond and the Dawes 7s were up more than $10. Many issues of German industries, public utilities and municipalities displayed more spectacu- lar strength. Trading in the group was so active that a 2-minute intermission was called soon after the opening as de;.\er.s caught up with the deluge of orders, Europe Seis Example. European exchanges, opening several hours bew the New York markets, set Wall Stre a lofty example. Prices on the Berlin Boerse rolled upward in one of the strongest sessions in years, clos- ing with wide gains, and the run on the Reichsbank’s gold reserves, which had been sharply depleted last week, was said to have stopped. Securities in Lon- don, Paris and Amsterdam responded substantially. New York cotton followed the Liver- pool and Indian markets and world- wide buying was reported here at the opening. The early gain of $2.50 to $3 a bale was shaded, but the tone contin- ued strong. Quotations on sugar and lead were marked up slightly. Early gains in wheat and corn encountered profit taking. The quick change that had come over speculative sentiment was reflected in a rise in the price of Stock Exchange memeberships. Sale of one seat was reported at $225000, an advance of $25,000 over the previous transaction. Optimism Is General. Stock Exchange commission houses, in their advices to customers, disclosed varying degrees of optimism over the influences of the turn of the foreign debt situation on the securities markets, but some felt that it may possibly have marked the end of the bear market that began nearly two years ago. One of the larger wire houses said in its market letter, “There is every indi- cation that week end developments in Waéhington may very well prove to have ded the death knell of the bear market.” Others pointed to the likeli- hood of & secondary reaction, which is usually experienced after a violent up- swing. Nevertheless, the prospect of a definite turn was stressed, and another large wire house warned bears, “It looks as if it will hardly prove a wise policy to postpone covering until the last piece of bad news is out of the way.” Leading financiers and busienss men expressed general approval of President Hoover’s move. One of those to com- ment was Myron C. 'Taylor, chairman of the Finance Committee of the United States Steel Corporation, who returned from Europe this morning. “I consider the move for a holiday on reparations and war debt payments as the first great constructive move we have made for the world’s economic re- brought to fruition it will produce real |should peace in Europe and throughout the world. The President’s offer is a cause for gratitude in Austtia, he said, “for these enormous war debts ate the despair and ruin of the nations.” tant support -lof all those who desire to see stabler Now! New low price conditions established in the world at large, with resulting benefits to our way puts it the world and before ‘entitled to the greatest credit and it should receive the indorsement of the entire country.” Paul M. Warburg, chairman of the board of the International Acceptance Bank, said: President Hoover's proposal may be considered as constructive in the high- est sense. Indeed, it may mark the turning point in the economic ganization menacing the entire world. The President’s proposal will prove in- valuable in restoring .confidence and cheer among all struggling nations and may turn the world from the abyss toward which it was headed and pave the way for general business revival. ‘The proposal cannot be too highly com- mended.” BERLIN BOURSE BOOMS. Lefore He is Hoover's Proposal Renews Public Con- fidence in Industries. BERLIN, June 22 (#)—The desperate financial predicament afflicting Ger- many is being realized by financiers now that the lifelines have been thrown out by President Hoover and joyfully seized by the nation. The German public had known for a long time that the Reich’s finances were in a bad way, but here, as well as abroad, few had dreamed to what ex- tent the crisis reached. ‘The fact is that the Reichsbank’s gold reserve not only was seriously threat- ened by the recent run on foreign cur- rencies, but it was so badly weakened that President Luther could see no way of getting the bank's reserve ready for the end of the month’s needs except by clamping & 40 per cent restriction on credits. ‘This would have forestalled another rush into inflation, similar to the early post-war years, but it would have de- livered a crushing blow to industry. And industry was so far from able to withstand a crushing blow that the ultimate result &l‘g:‘hly would have ‘besn worse than tion—namely, col- lapse. ‘The Reichsbank is required under the ‘Young plan to maintain a gold reserve of 2,500,000,000 marks. For the end of the year and the end of the semester demands, however, the reserve is al- ways built up to 3,000,000,000 fnarks. The recent run on foreign currencies, amoun! to _the flight of capital, had nibbled the Reichsbank’'s gold to well below 2,000,000,000 marks, and.the loss of additional millions on Baturday left President Luther with only 1,550,000,000 marks. ‘The 1,500,000,000 marks (about $375,- 000,000) which Germany will not have to pay this year will lift a load of 660,- 000,000 marks off the federal railways (which have been furnishing a large share of the reparations), leaving about 840,000,000 marks applicable to the Relch's bu In addition, a loan of $300,000,000 is expected from America. This would convert short-term credits into the long- term credits which are the crying need of industry. While press comments indicate Ger- many feels a mountain has been lifted off her ahmllde'za. the public is warned Bruening pointed out. The no longer will Be in vain. ——— AUSTRALIA LIKES PLAN Debt Proposal Raises New Hope and Is Backed by Premier. MELBOURNE, Australia, June 22 (P).—President Hoover’s proj for a moratorium in payment of interallied war debts and Gesman reparations has drawn wide attention in Australia and has raised hope that the depressed economic condition of this couniry will be_benefited indirectly. Premier Lang of New South Wales declared that Mr. Hoover's proposal offered the only way out of appalling con?é:.iom prevalling throughout the wor, Fo CE e P TS y TAYLOR LIKES DEBT PLAN U. 8. Steel Corporation Chairman Lauds Proposal for Delay. NEW YORK, June 22 (#)—Myron C. e Corporation, eturning oday on rporation, returning on the Tle de Prance, described Prelzhnt Hoover's proposal to suspend war-debt payments for a year as “a -first- rate constructive move that should be fully appreciated abroad.” DEBT TALK AIDS TRADE BUDAPEST, Hi , June 22 (P).— President Hoover’s statement on repara- tions and war debts was received with great interest here, and already has served as a stimulant to business. men’s suits Bo,rfnot Call and delivery ' Call North 1060 Cleaned I Formerly $2 Ev s 1752 M St. NW. - FRANCE HOLDS KEY <22 T0 WHOLE PROBLEM Paris Cabinet Will Meet To- morrow to Decide on Reply to U. S. (Continued Prom First Page.) of payments would not alone cure the world of its economic illness. Liloyd George e Hlieve the economic strain. {oufilmmgzlhm of debts ':kzn nhe; n when my government propose it to the United States and France the world would have recovered much more rapidly.” e It was pointed out that acceptance of the scheme would result in an actual loss to Great Britain, however salutary it might be to debtor nations. In the ordinary course of events, she would receive $166,750,000 in reparations in the fiscal year of 1931 and would pay the United States $165,000,000 in war debts, legving a surplus of $1,650,000. 1t was commented authoritatively that America always had done her part in shaping world affairs and that it mat- tered little whether it was at the eleventh hour since her action had al- ways been effective. Her entry into the ‘World War at a critical juncture, her initiative and sacrifices in the first naval conference and “to a certain ex- tent” in the last naval conference and what was termed her ald in working out both reparations conferences were cited in comparison with Mr. Hoover's initiative. ‘The London Times in an editorial under the caption, “A Wise Lead,” says: “The President's welcome proposal is a most impressive admission of the economic inter-dependence of na- tions and continents made since the war and is a courageous attempt to mitigate the mass pessimism that was weig] down the nations and hinder- ing recuperative effort. * * * It be- hooves the statesmen of Europe, where the pext step must be taken, to do their \utmost to render the benefits of the proposal practical and permanent. By country, Mr. Hoover’s lead will be most cordiallly welcomed and sup- ported.” PARIS GETS OFFICIAL NOTE. o e AP kY Financial Experts and French Leaders Confer on Stand. PARIS, June 22 (#)—The American embassy today delivered to the foreign office President Hoover's proposal to postpone war debt and reparations pay- ment for one year. The official transmission of the text of the document indicates that Wash- ington will be pleased to receive the official French jon and conversa- tions were immediately begun for the preparation of a reply. A meeting of financial experts, in- cl g those who took a prominent part in the collaboration on the Young plan and some officials of the Bank of Prance, was followed by a consultation among ce Minister Flandin, Premier Laval and Foreign Minister Briand. ‘They expected to draft the broad lines of the Frerch response which is to be examined at the meeting of the cablnet tomorrow. French officials in view of the importance and delicacy of the Juestions showed a marked tendency. tos day to sidestep comment. They made no predictions of the probable French attitude. It was made clear, however, that wt or ce through temporary losses of conditional and unconditional reparations payments from Germany. It was said that any agreement to suspend such payments must hnlvxe the that receive unconditional payments with the one hand and return them to Germany with the other in the form of credits. Editorial comment in Paris news- 1| papers is marked generally with misgiv- the | clared, “that German Hails Debt Plan DR. JULIUS CURTIUS, Foreign Minister of Germany. ings that Frapce can stand the cost of the Hoover plan and the conclusion that Prance must make a sacrifice second only to that of the United States. Official circles took the view that any move to defer German reparations pay- ments should be handled through the postponable clauses of the Young plan. | An international conference should be held for that purpose, and negotiations started between governments through gfc regular diplomatic channels, it is| The newspapers Excelsior and Le Matin, both moderate organs, said that | through the Hoover plan England would | lose almost nothing, Italy and Belgium would sacrifice several tens of thou- :ndfl of tl;lnc‘:,h;nd that France would nounce for year's budget about| 2,300,000,000 francs (about 892,000,999).l Le Journal said it was convinced debt revision now was inevitable. It argued that either Mr. Hoover's remedy would prove ineffective and the eco- nomic crisis would continue, or else it would be successful and would remain in force indefinitely. The leftist organ, L'Oeuvre, found the most interesting thing about the proposal to be that America had sud- denly become aware of the economic mlldlfll{h:( the world and had per- celved t generosity can be good business. Pertinax writing in Echo de Paris, took exception to the manner in which the plan was fcrmulated, claiming it was done without previously consulting the Interested powers and was thrown at_their head like a projectile. Mr. Hoover’s action was attributed by several papers to his desire to protect heavy loans by American banks 2gainst & general upheaval in Germany. Some Opponents Outspoken. Indications of difficulties which the government is expected to encounter in accepting the Hoover, plan was fur- nished in the lobbies of the Chamtaw of Deputies. A number of members | were outspoken in opposition to any | agreement which would suspend un-| conditional payments. | opposition was based on the | grounds that these payments were essential for reimbursement of France's heavy outlfiys for rebuilding property destroyed by the war. Some deputies icted the Instot predi Chamber Minister the proposal Observers pointed to an editorial in Le Temps as a possible tion of France’s attitude, since articles in this newspaper are often officially inspired, Le Temps said that Germany's indi- vidual and private creditors must also give Germany a year’s moratorfum if both conditional and unconditional reparations payments cease. “It is inadmissible,” the editorial de- payments on un- | conditional as well as conditional parts | of the Young plan should be suzended for a year, ‘commercial’ cred- itors of Germany alone to receive their payments during this year.” ‘This declarations of Le Temps was preceded by an assertion that Hoover’s interest- early had turned toward -pri- vate American capital engaged in Ger- many. “To understand the problem it is necessary first to take into considera- tion the real reason for Hoover's ac- “Mellon’s re- in awakening, and it seems that follow- ing the Chequers’ meeting, the British authorities, who were seriously alarmed, must have acted in the same direction. \ “It was quite natural that there way a preoccupation in the United States to save Amrrican capital invested in Germany and to prevert as much as possible the collapse of Germany, the consequences of which would be grave for Europe and have a serious effect upon American economics.” Le Temps considered that the Young plan does not permit postponement of unconditional payments under any cir- cumstances. It added that even if the United States has no official knowledge of the Yqung plan, it exists as far as Europe is concerned. “It is not impossible to find a formula which would maintain unconditional annuities and at the same time find some indirect means of aiding Germany effectively,” the paper declared. ‘This suggestion was considered by some as a hint at the possibility of lending back to Germany noney peid during the year on the unconditional portion of the Young plan. GERMAN LEADERS REJOICE. Proposal Is “Gift From Heaven,” For- eign Minister Says. BERLIN, June 22 (#)—Germany has accepted with nation-wide rejoicing President Hoover's offer to defer for one year payments on intergovernment war debts. In announcing its adherence yester- day the government expressed the hope that Great Britain and Italy also would fall into line with the American plar to end world-wide economic depression. Though it was admitted that France annually receives about twice as much in reparations as she pays in war debts, it was hdped she, too, would become a party to the agreement. Describing President Hoover’s proposal as & “gift from Heaven,” Foreign Min- ister Julius Curtius said: “He has placed his finger on the sore spot and now_comes one of those rare moments in history when all reserve should be throw aside. I can only say that we indorse with unqualified joy th2 heroic declaration which President Hoo- ver has made. ° “Not only will it lighten our burden, it will remedy the situation throughout the world. I don't care what people say about lower prices and such-like economic factors; at the bottom of it all is lack of confidence. That is the decisive factor and Mr. Hoover has beer. quick to see it and to realize that i where decisive action is needed. “I express our deep appreciation fo the services of Ambassador Sackett ir bringing about this action. This wise quiet man long has advocated solutior along the lines which Mr. Hoover now proposes.” Dr. Curtius recognized that ac ceptance of the plan by France woul¢ entail great satrifice and besought he' co-operation for the common good. “I do not hesitate to recognize this truth fully and appreciatively,” he said “and everything possible will be done by Germany to make it easy for France to accept, We have but one wish—to put an effective stop to the world eco- nomic_crisis as we want to co-operay with Prance toward that end in ever: possible manner.” ITALIANS ARE OPTIMISTIC. Official Comment Withheld Pendin: Receipt of Note. S ROME, June 22 (#—The Itaflan government, although not yet officially informed of President Hoover’s mora- torium proposal, radiated optimism over it today. John W. Garrett, the American Am- bassador, visited Dino Grandi, Itallan foreign minister, at noon, but as no of- ficlal instructions had been received from W gton, he was unable to communicate the details of a plan ready made known through the news- papers. For the same reason official comment ‘was withheld. Italy has received rather more in reparations than she has paid on her debts to the United States and Great Britain, and this margin w be sac- rificed during the propesed moratorium. writes this typical Manhattan customer “the one actual fact that pleases me most is that the clothes do not show as much wear as they did when I had my laundry done at home.” HIS satisfied customer’s letter is based on facts! For here at Manhattan we use soft Net Bags to keep out the wear that wears clothes out. Gentle suds of Pure Palm Oil Soap and floods of soft, filtered water rinse away every trace of dirt : rubbing or scrubbing. 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