Evening Star Newspaper, June 23, 1931, Page 4

W CO-OPERATION, NOT FORCE, AMOF U Effort Being Made to Show; France Debt Plan Was Not “Cooked Up.” (Continued From First Page.) consider such a step entirely apart from the Hocver debt plan. Mills also conferred with Emmanuel ‘Monick, financial attache of the French embassy, over figures involved in the debt moratorium. 2 At the undersecretary's’ request Mo- nick has cabled his government for Young plan data, particularly with ref- erence to the amount of unconditional payments that would be postponed by & moratorium. Monick brought Mills no word from the French government. Mills said any announcement from France would be made to Secretary Stimson by Am- bassador Claudel. Mills was in constant conferences during the day with various Treasury experts, other governmental officials and foreign diplomatic representatives. Awaiting French Reply. In the meantime, however, the ad- rmr?ist.rsno nis awaiting the answer of the French government to the proposal with the keenest interest. President Hoover made it clear that his proposal can be carried into effect only if all the nations involved join wholly in the Pl om Parls came the Teport early that the French Cabinet had considered the Hoover proposal at its meeting to- day, but hns come to no final conclu- sion thereon and had adjourned to meet again tomorrow. Alternative pro- posals were advanced in the meeting of the French cabinet, it was r¢ , but just what these proposals were has not "been revealed. Apparently none of them has been agreed upon, and the administration is hopeful that when the cabinet does come to & conclusion it will be to accept the American pro- posal. Acceptance Indicated. It is realized here that on the de- cision of the French hinges, in reality, the success or non-success of the plan put forward by the President. None of the other nations involved is likely in any way to block the plan, and al- ready the governments of Great Brit- ain, France, Austria, Germany a other nations have indicated through their representatives either in Washing- ton or in their own capitals that the plan is acceptable. Stimson to Outline Policy. The American Government, through Secretary of State Stimson, has sought to impress upon the world the need of speed in acceptance of the plan, if the psychological benefit expected is to be derived. Any effort to haggle over terms, thus bringing about delay, will be injurious to the plan as a whole, Already the markets of the world have responded surprisingly to the stimulus of the President’s announcement of the plan, Delay by the French cabinet today is a matter of regret. But it is realized here that the matter is one of great importance to France and that the government of that country must weigh the proposal carefully. Secretary Stimson will deliver to- night at 10 o'clock (Eastern standard time) an address over the Nation-wide networks of the National Broadcast- ing Co. and the Columbia Broadcasting Co. on the need for the intergovern- mental debt suspension as proposed by Presiders; Hoover. His address will be concluded at 10:15 o’clock. Mr. Stimson in his address will dis- cuss the critical financial situation in Germany and other reasons back of President Hoover's proposal for the sus- pension of the debt and reparations payments. He remained at his desk this morning, working on the speech he is to deliver tonight instead of attending the meeting of the cabinet. No information was forthcoming from the State Department as to when the formal replies of the nations to the President’s proposal would be made pub- lic of, indeed, if any of them had been receMed. It is possible that these re- plies will be made public abroad, or if they are made public here they will be released all at once. ‘The President’s plan to suspend the debt and reparation payments for one year, however, has received the ap- proval of four of the governments most deeply involved, Great Britain, Italy, Austria and Germany. Belgium has asked for further information regarding the President’s proposal. Payment Conditional. After proposing a one-year suspension of war debt payments to the United States, the Chief Executive said this was ‘“conditional upon a like postpone- ment for one year of all payments on intergovernmental debts owing the im- portant creditor powers.” During the period of the proposed moratorium, Belgium would receive from Germany $24,400,000 in reparations and gfly to the United States $8,000,000 on er war debt. Liké France the country Teceives an excess of reparations over war debt payments to finance recon- | struction of territory devastated by the war. Belgium reparations receipts next year compare with $199,800,000 payable to France, $86,200,000 to Great Britain and $45,500,000 to Italy. France Largest Beneficiary. France, as one of the biggest suffer- ers in the World War, is beneficiary through reconstruction pay- ments, which are part of the German reparations and classed as ‘“uncondi- tional” under the Young plan. The rest of the German reparations are “conditional” and subject to & mora- torium if Germany declares herself un- able to pay. It is to the suspension of these reconstruction payments that opposition in France is likely to arise glrtlculnrly, it is said. However, the resident’s plan calls for suspension of all these payments for a year. The President today received a letter from Representative Andresen of Min- nesota, Republican, in which Mr. An- dresen proposed that this country dis- pose of its surplus wheat by seliing it to_ the countries which owe America degg as a return for suspending the debts. In his letter the Minnesota Repre- sentative suggested that the Farm Board sell wheat now held by its agencies to Germany, France, Italy and Great Britain at the market price, and that interest payments due from these countries on their debts to this commended the President’s plan for a suspension of debt payments. DEBT PLAN I.\TTITUDE OF GREECE UNDECIDED |iha By the Associated Press. THENS, June 23.—The Greek gov- ernment’s attitude toward the Hoover debt delay plan was described in au- thoritative quarters today as depending on whether or not the suspension would affect Bulgarian reparations. If the delay would be limited to Ger- man reparaf , it was said, Greece would not lose and would approve. If it included Bulgarian reparations, Greece would lose $1,070,000 and would, therefore, endeavor to obtain extension Tlons th Bulgaria awounting 1o $810.000. ‘ « nd | lated the the largest | jine, FRENCH MINISTRY REJECTS TWO PROPOSED DEBT-DELAY REPLIES Suggestions of Foreign and Finance Chiefs Turned Down—Answer to Be : Framed Tomqrrow, (Continued From First Page.) capitals and of the Washington Gov- ernment were centered on Paris, for it is from France that the next big de- ’\;elopmgnt in the reparations situation wish to be rushed into dealing with the Hoover proposal. While there is no in- dicajion that the nation wants to re- ject the American t is apparent that time is that the govern- ment may reflect upon it and un- derstand its effect on the future eco- nomic, financial and political situation of Europe. May Have Another Ydea. It is even deemed possible that France may have another idea about how the German question should be handled. One minister declared after leaving the cabinet meeting that it was too early to predict the nature of France's reg.l‘fl because discussion among the ministers is not sufficiently advanced. “The cabinet has e: ned the pro- posal of Mr. Hoover, President of the United States, tending to the deferring of intergovernmental payment of debts and reparations,” said the official com- munique issued by Premier Laval. “M. Briand put before the cabinet the conditions under which the French government has been approached with this dm-oponl. Minister of ce Flane and Budget Minister Pletri set forth the consequences which the American suggestion would entail for French finance. To Decide Reply Tomorrow. “The discussion will be resumed to- morrow morning during another cabinet meeting which will decide upon the text of the reply to be sent to the President of the United States.” By coincidence, Premier Laval, just after the close of the cabinet meeting, received an important delegation from the international association “for CH based on respect of treaties.” Imcluded in the delegation were citizens of France, Poland, Rumania, Czechoslo- vakia and Jugoslavia, They congratu- remier on & recent address in which sald Prance would insist that treaties be respected. Official circles exercised discretion in not hazarding predictions as to France's attitude until the plan had been exam- ined in the minutest detail. However, a foreign office spokesman said the President’s offer was a “great and gener- ous act” in view of America’s own eco- nomic difficulties. Le Matin Optimistic. Le Matin, usually well informed, said preliminary study of the proposal re- vealed it was not impossible that France could accept it as a whole without re- nounging any of her rights, pointing out that Mr. Hoover had disapproved of cancellation of war debts and intimat- t the same thing could be said of reparations. : ‘There is no reason why Mr. Hoover's intentions cannot be respected and France associate herself with his “‘salu- tary, generous enterprise,” the Matin sald. The French treasury could con- tinue to receive Young pian gaymenu from Germany and the French market could emplcy the equivalent or even more for th:m benefit of the Reich, the r set forth. Ngem‘ some extreme left organs, the newspapers are almost unanimous in objecting to the plan for the reason that it would mean the stoppage of the unconditional payments in_the Young lan and thereby open a hole in the Eud‘efi. ‘The principle generally is con- sidered praiseworthy, but its translation into & working agreement is felt to be dubious. It is understood that deputies hostile | to the government will present their interpellations against Foreign Minister Briand on Friday, demanding to know whether or not he was consulted before the plan was announced and, if so, what position he took. Beginning of Disarmament. Soclalist Deputy Camille Planche to- day filed an interpellation against the government in regard to the Hoover proposal, saying it should serve as the beginning of & general iment TO| 3 Nmu other interpellations, all in- dicating the vast importance with which France views the Hoover pro- posal, were filed. Plerre Cot, ical Deputy, gave notice that he will ask the government what will be done to incorporate the Hoover suggestion into the framework of a scheme for the gen- eral economic reorganization of Europe. Deputy Dubols, Moderate and former chairman of the Reparations Commis- sion, wishes to know what the govern- ment will do by way of accepting the American proposal. PARIS HUB OF UNIVERSE. Whole World Awaits Decision According to German Newspaper. P BERLIN, June 23 (#).—German offi- cialdom declared a one-day moratorium from overwork today with the realiza- tion that Paris—not Berlin or Wash- ington—is the hub of the universe in respect to the Hoover debt proposal. “The whole world w;lumtcr :‘lrll. itung announces a banner w‘?‘m Emnubly voicing the senti- ment all Germany. Ambassador Leopold von Hoesch, who hastened to Paris when President Hoover's proposal regarding intergovernment debts was announced, has been in continuous touch with Chancellor Bruening and foreign Minister Curtius, advising them as to what Germany can do to make France's acceptance of the plan easier. Until Paris makes her decision the German government is marking time. Meanwhile, another German Ambas- sador has a formidable task. Carl von Schubert at Rome must try t0 convince Premier Mussolini that the customs treaty with Austria and reparations are not related, nor are the customs union and Anschluss (political union) identical. Must Convince Mussolini. Ambassador von Schubert was Te- ported to have been instructed to try to convince Mussolini that the matter of the customs union rests safely in the hands of the World. Court and that it would jolt world confidence if he were to try to anticipate the action of that country be suspended for 10 years. He | bod; i Ix{ so far as German public opinion was concerned, fi:vzraay'a burst of jubilation was followed by a day of sober calculation. Newspapers pointed the people realized the lennium had not come by any means than ever Germany must now show herself worthy of Mr. Hoover's confidence by doing every- thing possible to reduce public expense, eliminate waste and extravagance and little by little get back on her feet by her own efforts. One evidence of this feeling Reichsbank’s decision to try to get along without the $300,000,000 loan d at its disposal by American Despite the one-day moratorium from overwork, the cabinet held a brief meet- ing today and formally agreed there could be no relaxing Spartan economy measures. All savings made possible through the Hoover plan, at present of the | pressed with Secre! it was decided, must be devoted to put- ting public finances on & sound basis. ‘Would Welcome Conference. Chancellor said in an in- terview today he would heartily welcome an informal conference with French officials over mutual problems “for we certainly have an earnest desire for friendly conversation with French statesmen.” Concerning French adherence to the Hoover moratorium proposal, he sald “I have the conviction and hope that France will not let this very great mo- ment dlf b{ulor the pacification of the world, of which raj ent France and Germany form an important, in- consensus of the German press today was that while President Hoover's moratorium proposal would alleviate the crisis the ultimate salvation of the world lay in & more radical step than mere postponement of intergovernment war debts. Democratic newspapers expressed con- g‘nnmlnsry to more far-reaching ones the future. “The payments during the most precarious of all the tribute years can only jan the beginning,” said the Boersen Courler. “New years of rest must follow the first —and lead to final revision.” Grudgingly Admit Benefits. The nationalist newspapers, grudging- ly admitting the benefits of the sus- pension, contend that it means a period for Germany to catch her breath so she will be in better condliton to bear her burdens later on. m;’;l‘he]y ’&?‘:hwanltdw kill the ooud 's la; e golden eggs,” declare the Lokal Anzeiger, adding that it was humiliat for Germany to wait for a foreign nation to take the initiative in saving her instead of taking things in hand herself. Der Tag went so far as to say it was.time for the ministry to T Hjalmar Schacht, former president of the Reichsbank and a consistent critic of the Bruening government, said in the extreme nationalist organ, Deutsche Zel- tung, “Chancellor Bruening now has a e | chance to change his policy of watchful walting to activity.” Lauding the plan, ::e uld:‘ "g}l ln’o:her testimonial of the rong feeling of responsibility America feels in public affairs.” ‘The Tageblatt expressed trepidation over Mr. Hoover's statement that rep- arations and interallied debts were two different matters, but h the post- ponement plan would initiate a thor- ough change in both. BELGIUM MARKS TIME. Awaits Word From Washington as to ‘Whether She Is Included. BRUSSELS, June 23 (&) glan government today awaited word from its Ambassador in Washington as to whether President Hoover in- cluded Belgium when he suggested that the important creditor powers suspend war debt payments for one year. Officials pointed out that the Belgian budget is drawn up on the basis of German reparations payments and that the Young plan was a part of Belgian law. It was safd in other quarters that approval of the Hoover proposal would increase Belgium's deficit by about $22,000,000. The newspaper Independance Belge said the plan was a “disastrous ar- rangement” and that if it was put into general effect Gmmy';&:nclpnl ‘war victim would also be principal victim of the moratorium. The paper said it assumes that, in- asmuch as Mr. Hoover referred to “im- portant creditor powers,” he intended to exempt Belgium. JAPAN DISCUSSES PLAN. Cabinet Understood to Have Virtually Accepted Proposal. TOKIO, June 23 (#)—The Japa- nese cabinet today discussed President Hoover’s moratorium plan and was understood to have virtually agreed to accept It as soon as formal approaches ‘were le. SOVIET PRESS HITS PLAN. Charge Insincerity Induced by Fate of American Investments. MOSCOW, June 23 (&) —President Hoover's war debt proposal was at- tacked in the press here today as in- sincere and induced by fear for the position of capitalism and the fate of American investments in Germany. Had the President really meant to help the prosperity of the world, says the official org;n, I;vesua‘ ""i‘nstzwrd of ning debts and reparations for a x';mhe ‘would have proposed to abolish the war debts altogether. “War debts play no small part in de- stroying the welfare of other countries about which the head of the American Government is bothering himself so much,” the newspaper continues. “The rapid development of the reyo- lutionary movement in Germany com- pel Ame to take up the question of thle strengthening the German bour- geoisie, Seeks o Protect Investment. “America has invested $6,500,000,000 in Germany and it is obvious she would not be pleased to lose it. This is the reason for Hoover’s proposal.” Pravda, the official Communist organ, = “it is nzus;nmrymfis understand [oover's proposal y as an ap- peal to save Germany, but also as an appeal to the American bo to make certain sacrifices now in order not to lose all in the future. “Like the ¥oung plan, which prom- ised, but brought neither improvement in the condition of Germany nor re- conciliation of tae contradictions be- tween imperialists, the Hoover proposal still furt] widens the channel be- tween them.” MUSSOLINI TO REPLY. ROME, Jupe 23 (#)—Premier Mus- solini wiil put the finishing touches on Italy’s reply to the United States war debt proposal at a conference tomorrow with Finance Minister Mosconi and Foreign Minister Grandi. ‘The premier already has outlined his policy, which will be to require assur- ance that Germany will refrain from utilizing any expected economic recov- ery to further political designs, such as the proposed Austro-German customs i > { OPTIMISM UNOFFICIALLY VOICED. British Acceptance of Proposal Cabled to.Sir Ronald. LONDON, June 23 (#).~—Confidence that the interested governments will accept in principle President Hoover's proposal for a year's suspension of war debts and reparations payments was voiced in authoritative but unofficial tish quarters today. At the same time it was announced that formal British aco:ptance in prin- ciple had cabled to Sir Ronald Lindsay and would be handed to Sec- retary of State Stimson today. Agreement Expressed. Hearty unofficial agreement was ex- Stimson's state- fidence that the Hoover plan was only | g2 G _STAR, TREASURY PROBLEM ARISES OVER DEBTS Mills Sees Rise in Revenues if Trade Gains—Proposal Would Add to Deficit. The Treasury Department today was facing & new financial problem, despite a declining Federal deficit, because of President Hoover’s proposal for a debt suspension. ‘With the end of the flscal year close at hand, and indications that the deficit will be nearer $850,000,000 than the $950,000,000 forecast & month ago, the Treasury faced the possible elimination of $246,566,806 in foreign payments next year. Due to the proposed suspen- sion, Undersecretary Mills said, however, the Hoover debt holiday would be “a very good investment for the Treasury if it turns the tide of business.” “Judging by the action of the princi- pal markets of the world today it is re- rded as a favorable factor,” he said. “If it does turn the tide it will be postponement of | very good investment for the Treasury. Would Boost U. S. Debt. Mills believes an upturn in business would repay by increased tax collections the losses through foreign debts. A 1932 deficit of about a billion dol- lars already has been forecast unless additional taxes are levied. Interest payments on the war debt contributed $184,474,000 toward reduc- tion of the 1931 deflt:lt.t S A suspension agreement w the prospective 1932 deficit $184,222,000 in foreign interest payments due next year, and this amount would eventually be added to the public debt. Meanwhile a direct $62,344,600 retire- ment in the pubs; ?ebt "t:mu;h pm"; cij payments ore] nations lfi%nll also would be eliminated by the proposed suspension. Principal pay- ments in 1932 made a $51,588,000 dent in the $16,500,000,000 total. Deficit Grows Less. The deficit continued its downward path today, Teaching $864,794,904. The debit figure at the close of busi- ness June 20 was $14,373,600 below the preceding day's deficit. Income tax collections on June 20 were only $18,992,042, as compared with $41,033,048 the preceding day and $44,- 104,300 on the corresponding first-quar- ter collection day during March. Income tax collections during June reached a total of uu,eflz.’lns,wbrlng- ing the 838,281,800. =« recelpts for the ,000. All Government revenue on the close of business June 20 totaled $3,264,306,~ 100 for the fiscal year, as against $4.- 106,318,100 in the corresponding 1930 perfod. Expenditures came to $4,129,. 101,000, as compared with $3,883,207,- 600 in 1930. ficial effect of the Hoover plan is to be felt. However, it was stressed at the same time that matters were not so simple that & plain “yes or no” could suffice, since the question was bound up with considerable detail which must be elab. orated and gone into—although not un- til after the suspension itself has been agreed upon. Prime Minister MacDonald, answering a question in the House of Commons regarding his conversations with An- drew W. Mellon, American Secretary of the Treasury, replied: Conversations Not Official. “The conversations I had with Mellon were in no sens> official and I have nothing to report.” He also made a similar answer with regard to the visit of Chancellor Bruen- ing and Forelgn Minister Curtius of Germany. Despite the prime minister’s formal utterances, authoritative quarters to- day for the first time asserted that President Hoover’s initiative was due largely to conversations Mr. Mellon had with Prime Minister MacDonald, who previously had informed himself of the German situation in his conversations with Bruening and Curtius. ‘The special difficulty of Belgium and France in acceptance of President Hoover’s proposals was the subject of wide comment, but it was felt for- elgn office quarters that both would fall in line with the U~ited States and Great Britain in view of the advantages to world trade and e¢onomics. Germany Could Delay. Under the terms of the Young plan and The Hague agreements, it.was Foxnted out, Germany at any time t feels it necessary may automatically declare a two-year moratorium for the conditional reparations payment. Therefore, discussion in French news- papers to the effect that Prance cannot surrender the unconditional payments, but is . perhaps, to forego the conditional payments for one year is described as taking the fact that Germany id of her own initiative secure a two-year mora- torium of conditional payments—with- out President Hoover’s aid. Comment was made also that it was not believed Italy would make any im- portant reservations. British Loss Large. Bx::u:“ added th:;td whereas Great was represented as being a clearing house for bem Germany, France and the other British debtors on the one hand and the United States on the other, if the present situ- (IS often atlon were taken into account, and the British dominion accounts included, the British loss, by acceptance of the plan, would not be far beneath France's, g&l&l: is the largest next to the United Prime Minister MacDonald’s ac- ceptance of the American plan has been indorsed by newspapers of all shld_!%se of pofltml uplruon,l = more proposal is consid- ered,” said the Times, “the more pro- found becomes the conviction of its c'mmsce ".2" importance,” fi, sentiment hich echoed general con- temporaries of the Times. » Sympathy for France. other nation except America, would be more apparent WASHINGTO. Mr. | not as D. C., TUESDAY. Vatican Is Pleased By Hoover’s Plans For Debt Holiday that any measure would ease the situation created by war debts and 1d help the prosperity of the world. H FRENCH CHAMBER HOLDS PLAN'S FATE Could Force Ministerial Crisis as One Way to Delay Ap- proval of Debt Proposal. (Continued Prom First Page.) ver sald “all” Under the terms of his proposal all governments owing debts to other governments would suspend the payment of all installments falling due between now and June next year. The number of natlons ccncerned is considerable. As a result of the treaty of peace, Germany is making payments of reparations to several nations. As & result of post-war settlements of Ger- many's foes among themselves, having to do with reparations and also with moneys advanced by r allles to smaller ones, there is an extremely in- tricate tangle of annual cross-payments. It involves Germany, Great Britain, the United States, France, Italy, Belgium, Austria, Greece, Poland and eight other smaller European nations. In the com- plex web, several nations are at once debtors and also creditors. To deter- mine, as to any one nation, whether the waiving of amounts receivable would balance the walying of ‘amcunts pay- able would be a mathematical problem. France Faces Difficulty, President Hoover cut through the whole tangle by proj to lift for one year the entire “fabric of inter- government debts,” which, he sald, “weighs heavily ir the midst of this depression.” All the nations concerned have either assented, or it is practically known that they will, excepting France. For France's hesitation there is much consideration. She suffered most from the war, and in the operation of the Hoover proposal she would make a larger net financial sacrifice than any gtaeurs nation excepting the United France, according to newspaper dis- patches from Paris, raises tentatively a distinction between two classifications of the annual sums she receives from Germany. One, speaking roughly, is the sum which France keeps for herself to compensate her for the restoration of her devastated territory. This sum is described in the war settlement as “unconditional,” meaning that Ger- many must pay each installment when due without fail. The other annua! sum received from Germany by France is, speaking very loosely, that which she transmits to the United States and Great Britain to repay her war debts to us and Britain. This is described in the Young plan of war settlement as “conditional,” meaning that under the Young plan Germany, upon her own initiative, has the privilege of post- poning annual payments for three years. Would Accept Terms. France’s attitude toward the Hoover proposal, according to unofficial in- formation, is that she would be willing to accept it as respects her “condi- tionsl” payments from Germany, but the “unconditional” payments. If this should turn out actually to be France's official answer France, speaking roughly, would merely be waiving only those payments from Germany which Germany has a_ right to suspend anyhow under the Young plan. France, again speaking very roughly, would merely fail to receive a certain sum from Germany and, in turn, would fail to transmit a roughly equivalent sum to the United States and Great Britain. France, speaking loosely, would be making no new, ma- terial contribution to the spirit of emergency, but merely acting in accord with existing stipulations in the Young plan and the debt settlements. P to the time this dispatch is written the information from France about her possible action has been chiefly newspaper surmise. Official answer will come later. It may be that French government leaders may feel obliged to take this position about the Hoover proposal because of apprehen- sion that the French Parliament might not indorse complete accentance of the American proposal. If so, it would unhappily result that the American Congress_would not accept the sug- gested modification of the Hoover proposal. Conglition Is Critical. On the other hand, the better hope is that the French leaders may convince of | their Parilament in the same way that President Hoover has convinced the leaders of both parties in our Congress. | cost Much depends on the degree to which the sense of emergency weighs. There was last week among leaders in France, as well as in every other European country, a spirit almost of terror over the im- minence of economic and social collapse in On-zrl;&y and the consequences that would t throughout all Europe. It was e':p‘g'gsed in flmgt !r:‘n;: mes- sages ‘ashington. eside: loover’s action had dissipated much of the spirit of crisis. A danger averted minimized in the memory of even g week later. Nevertheless, the more hopeful fact is that there are strong men in all the European capi- tals who will put their shoulders be- hind the Hoover plan because they are convinced that acceptance of it, in the words of Paul Warburg, “may the turning-point in the- economic dis- organization menacing the entire world.” (Copyright, 1931.) will be ruined and will dr: Germany thamto!lurwcdownwnhher:: sufficient JUNE 23, 1931. FRENCH WANT 11 FOR DEBY ACTION portant to Be Submitted to Any Snap Judgment. BY PAUL sCOTT MOWRER. By Cable to The Star, PARIS, France, June 23—The eyes of the entire world are turned toward Paris todsy to ascertain the fate of the Hoover plan for s year holiday in reparations and war debts payments, and turned in vain, ‘The French government met toward noon to discuss the plan and draft the urgent reply . which the American Government had requested. But after hearing the various viewpoints the gov- ernment decided merely to resume its deliberations tomorrow. ‘The affair is felt to be too important for a snap decision. There is also a somewhat bitter feeling that, if the need ‘for hurry is so great, time might have been saved by Germany or Great Britain or_the United States by ap- proaching Prance some days n{o before :l}::led}:lm“r plan was formally pub- \Further Facts Desired. Also France desires to liave further information from the United States, and ly from Germany, and wishes to consult Great Britain, Belgium and Italy and others. It is understood that Belgium is not highly favorable to the plan, and that Italy, while willing to accept, proposes to make this acceptance contingent on Germany's abandoning the proposed Austro-German customs union. ‘The main French objections to the Hoover plan seem to be that it does not give sufficient guarantees for the future of the Young plan and repara- tions payments, and that it entirely disregards the political aspects of the German situation. France seems to be willing to go a long way to help Ger- many, but only on condition that Ger- many shows & willingness to drop its demands for treaty revision. French political circles are agog over the entire situation. Already four in- terpellations have been tered in the Chamber of Deputies, which the gov- ernment will doubtless succeed in post- poning until Friday, although it is full, recognized that whatever the govern- ment decides will have to be submitted in due form to both the Senate and | € the Chamber before it becomes final, Flandin in Conferences. Plerre-Etienne Flandin, French min- ister of finance, conferred yesterday with various experts, including Plerre Quesnay, managing director of the Bank for Internationaly Settlements, and then later with President Paul Doumer and Premier Plerre Laval, and saw Foreign Minister Aristide Briand today. The gains and losses of the vi rious countries under President Hoover's debt holiday plan, as estimated by the French experts, is roughly as follows: Germany gains $378,000,000, of which $232,000,000 profits the budget and the rest profits the railroads. The United States loses $230,000,000, France, $92,000,000; Belgium, about $20,000,000; Italy, $10,000,000, and Great Britain Jugoslavia, Roumania, Greece and Poland lesser sums. The German budget, it is estimated, would be lightened by about one-twen- tleth, French Position Stated. As far as the present year is con- cerned, it is said, the Hoover plan would be no worse for France than applica- tion of the Young plan moratorium, for while it is true that France under this moratorium would yet receive $60,000,- 000 from Germany on the unconditional part of the annuity, France at the same time would be obliged to pay tem- porarily to the bank for international settlements the so-called guaranty fund of $125,000,000. It is therefore not so much the immediate loss as the future prospects which are pre-occupying the French government. ‘The difficulty of refusing the Hoover plan is fully realized. The favorable reaction yesterday on all the world's stock exchanges, including that of Paris, undoubtedly impressed French financial and government circles. French leaders, therefore, are not in- sensible to the possible beneficial psy- chological effect of the Hoover plan, ‘which might even, it is suggested, prove to be the turning point of the world depression. France's first preoccupation is to keep the Young plan intact. She has spent, it is declared, ‘nearly $10,000,- 000,000 of her own money to war damages, and on this sum the French people are paying crushing taxes. Finances Are Debated. Prof. Rivaud of the Sorbonne, in a debate yesterdsy with the German, Dr. Bernard Dernberg, before the French Study Institute at the Supreme Court, declared that whereas the reparations under the Young plan at most never Germany more than 2,000,000,000 marks ($476,000,000 a year in a total budget of 11,000,000,000 marks ($2,618,- 000,000), the French debt, internal and e 1, mostly due to the war, is costing France 22,000,000,000 francs ($880,000,000) & year in & total budget of about 50,000,000,000 francs ($2,000,~ 000,000) . He claimed that German unemploy- ment was no worse than that in Great Britain and the United States and sald that Germany’s troubles were due mainly to bad financial administration and to political agitation, which hurts Germany's credit. This is what most French observers l::u:v:i The He;:rh‘, gmre!ou.lmul?d make cvery e; prevent a re- Viston of the Young pian, which they were told a year ago was final and irrevocable. Plan Deemed Insufficient. In the second place, while they see many resent ey feel that t.hg Hoover plan is in itself agitation ceases. There is talk therefore of in addition to & reparations. political holiday, during which the fl:mm 1 man fi!:g'nmenc wo&l: to re- customs fHeet a§;§E§ b 28 -3 £ § i 1 Grateful Germans Decide Uncle Sam Is Not a Shylock By the Associated Press. BERLIN, June 23.—The ach can is DEBT PLAN RESULT HINGES ON FRENG Refusal Would Give “Uncle Francois” America’s Old Place as Shylock. By Cable to The 8t LONDON, England, June 23.—What will France do? That is the question which, from the government, the foreign office down, makes every one guess in London to- day. The official opinion and the con- sensus can be said to be that France— no matter how difficult it might be— should accept President Hoover's holi- day proposal as quickly as possible in fi“l;fluu" “its tonic value” might not May Be “Uncle Francois.” Uncle S8am is no longer Uncle Shy- lock in London today—it might be Uncle Prancois! President Hoover's act is hailed as a master stroke of both international and local politics. It is doubted if for internal policy he could let France off with a part sac- rifice when America is making such a huge renouncement. Universal opinion is that despite the fact that it is only a 101-to-100 shot, France will have to accept unconditionally and that “noth- can stop President Hoover's holi- The London Times, the Evening Post, the Daily Telegraph, in fact all the conservative newspapers—with the ex- ception of Lord Rothermere’s Press— subscribe to this view. Hesitancy Dismays. vernment. wah, expresses dismay that the French organ, expresses dismay tha renc! government hesitates and might use the power of refusal to co-operate, thus dooming the Hoover plan to futility. It says: “That President Hoover is asking France to make an immediate pecu- niary sacrifice the world recognizes. Yet, like the American sacrifice, it is a sound business proposal. It is rather an investment than a sacrifice—an in- vestment from which the French na- tion will reap a very adequate return.” German Refusal Seen. ‘The whole question, of course, hangs on whether France intends to make Germany carry on with the uncondi- tional of the Young payments. The feel here is that the Germans, with the assurance they received at Chequers of sympathy and understand- ing of their precarious position, now terrifically reinforced President Hoover's action from the United States and backed by virtually unanimous world opinion, will simply refuse to carry on paying France the uncondi- tional Young payments. Furthermore, that if any German government did try it, the German people would un- horse it at once. Lord Rothermere's press is alone in its outright demand that Prance should not be asked to forego these payments, although today’s London Financial Times, representing conservative British business opinion, asserts that the loss of more than $100,000,000 would strain French national finances and that clearly some difference may have to be made between the conditional and the unconditional payments for the prac- ticable application of the Hoover plan. Fear Disarmament Revenge. One of the fears expressed here is that if France is forced against her will to join unreservedly in acceptance of the Hoover plan, she may take her re- venge at the forthcoming disarmament conference next year. ‘This is rded here as an extremely serious bility and the strong em- phasis the British place on the need for early disarmament and agreements settling Europe's political unrest and allowing the nations to get to business free minds should at no time be forgotten. suggestion apparently wo! greater than was at first thought, as Australia and the other dominions will probably ask relief from the war loans made by the mother country, Australia in par- ticular, and the British, therefore, stand to Jose about $48,000,000. (Copyright, 1931 Railroad Offered For Sale as I. C. C. Approves Its Plea Train Makes One Trip a Week on 16-Mile Line in New Mexico. By the Assoclated Press. o it favoring Y. oh a en for helping naturally not running mmnm in under- why France should make ef- forts and sacrifices to aid a which is believed to be interests in shape continent of , with the trent for the |- German; ORLD OPINION RALLIES AROUND U. S. DEBT PAYMENT DELAY PLAN DEBT SUSPENSION | LIFTS WORLD HOPE Government Gratiffed by Fa« vorable Reception of Proposal. BY DAVID LAWRENCE. Although s favorable reaction was expected, the truth is the entire Gove emment here is pleasantly surprised by President Hoover'’s proposal holiday in war debts payments. News that the security exchanges everywhere rose materially, coupled with the messages of -gpmmmn from business men everywhere, hopes sky higl spirits of officlals anxious for an upturn in business had sunk to despondency. In the wave of approval that has come from the four corners of the earth, officials here perceive something more than was intended in the Presi- dent’s statement, something more tham & suspension of war debt payments for a year. For it is realized that if Ger- many cannot pay during the next fiscal year it is unlikely that she will be able in the short space of 12 mionths to resume payments or to pay anything g:dvhe year that will have been omit- Complete Review Expected. Something in the nature of a re-ex= amination of the whole debt problem is confidently expected now, with the United States playing a more active role and willing to make sacrifices only l:l;mer nations are ready to do like~ The strength of the American posie tlon is but dimly appreciated now abroad. Heretofore when debt settle- ments had not yet been made, it was & question of capacity to pay and the United States refused to consider Eue ropean internal debts as having any bearing on.the problem of what Europe should pay to America. Now, however, with all ‘debt agreements specifically funded over a term of years, the ques- tion may well arise as to how, without scaling down the principal, there may be accomplished a spreading of the debt over longer than 62 years, possi- bly a hundred, so the annuities may fall with less weight on the taxpayers of Germany and other countries. U. S. Credit Secure. The unexampled credit of the United States is, of course, the basic factor in what has happened. A postpone- ment of $246,000,000 in debt payments to America for a year, indeed a cut- ting of a substantial sum like that every year-for five years until the world has recovered from the depression, would not make a dent in the credit of the United States, for it has taxed itself and retired nearly half of its debt in a decade—an extraordinary perform- ance in werld finance. It is not considered politic here to discuss what the next step will be— whether a calling of an internatiunal conference of debts will be promised for some time before the year's holiday expires or whether the nations wiil merely postpone payments from year to year, depending on how_ conditions appear toward the end of the holiday. ‘The asumption is that now that America has taken the initiative n handling the debt problem and has received such large support from both political parties, it will not relinquish the leadership and will gradually bring about a better relationship between governments on war debts, Confidence Is Restored. It is hoped, too, that if better busi- ness results from the President’s move, 'fluu will no longer be any doubt in this country of the value of the argu- ment that reli® for the German tax- payer is essential to world prosperity and to the stability of European gov- ernments. Already the increase in prices, due to partly restored confidence, is many times the sums that Germany is to be relieved of paying for one year and many times greater than what the United States will have to forego. From all parts of the United States messages are coming to the White House telling of a changed psychology, of an atmosphere of confidence and real hope. From abroad the communica- tions are even more buoyant, for the end is seen of the Amerfcan policy of isolation and the beginning of a helpful policy of economic co-operation. (Copyright, 1931.) —_— URIBURU FAVORS DELAY Argentine President Is Optimistic on Hoover Debt Proposal. BUENOS AIRES, Argentina, June 23 (#).—President Uriburu’s opinion of the Hoover war debt proposal is frankly optimistic. He said today it would con- stitute real relief for those countries whose finances arc handicapped by the payment of war debts. Uriburu declared that the commercial activities of the world would be favor- ably influenced and that it was logical to suppose the benefits would reach Argentine commerce. R — BACKS HOOVER PLAN North Carolina Democrat to Sup- port Debt Legislation. GASTONIA, N. C., June 23 (P)— Representative A. Lee Bulwinkle, Demo- crat, of North Carolina, today received a telegram from the White House ask- ing his views on the President’s pro-" posal for a year's suspension on inter- national war debts. He pledged his vote in favor of legis- lation to carry out the proposal. DEFEND SIDNEY CATTS ‘TALLAHASSEE, Fla., June 23 (#)— ‘The House of Representatives today de- feated a legislative resolution that sought to have a picture of former Gov. Sidney J. Catts in the executive offices turned to the wall because he is under a Federal indictment on charges of counterfeiting. Catts was indicted two years ago and was tried in Tampa in October, 1929. The jury was unable to agree and & Dave: rematned ‘imcs, ‘perding. snotcr ve ntact, pen another trial, the date of which has not been set. REJECT 8-CENT TAX TALLAHASSEE, Fla., June 23 (#).— ‘The House of Representatives today re- fused to consider a bill previously passed the Senate that would place a tax of 8 cents a galion on gasoline in Florida. AUTO STRIKES CHILD g Sl o W 10C] wn e % his ne it 8:30 o'clock Germany s | this French