Evening Star Newspaper, June 28, 1931, Page 4

MELLON REPORTS | DIRECT T0 HOOVER Castle Says ?‘Things Going Along Nicely” After Confer- ence at White House. BY G. GOULD LINCOLN. Negotiations now being condueted in Paris by Ambassador Edge and Secre- tary Mellon with the French officials, looking to an acjustment of the differ- ences between that government and the American Government over his propesal for a year's suspension of the inter- governmental debts, were the subject of a conference hsld at the Whie House ! yesterday afternoon by President i Hoover. | With the Pre:ident were Acting See- ! Tetary of Stats Wiliam Castle, jr. and | Acting Secretary of the Treasury Ogden Mills. During the course of tne con- ference, which lasted~for several hours, the telephome was called into service to talk with Mr. Mellon in Paris. “Things are going along nicely.” was the comment of Acting Secretary Castle ! as he left the White House following the conference, saying that Mr. Mellon had been heard from. Mr. Mills eonfirmed the report that there had been direct communication with Mr. Melien, and said that he him- self had talkad with the Secretary of the Treasury during the dav. The Acting Se-retary of the Tre: y, Mr. Mills. denied there v “pessimism” over the situatien He declined to ccmument, howerer, or reveal in any way the informatien which had been received from Secretary Mellon. Delays Start for Rapidan. The intense interest here in the situ- ation now developing in Paris caused the President to give up his plans to go early today to his camp on the Rapi- dan, where he planned to spend the week end. It was after 5 pm. when the President finally left the White House for the camp. The repert that the heads of the Ger- man government had been invited to come to Paris early this week for econ- ference was the subject of comment. If a formula can be worked out which is satisfactory te both France and Germany it is likely to be satisfactory to the American Government, whose prime in making the offer of the debt suspension at this time Is to | help Germany to her feet in the erisis which has confronted her in recent weeks. The French are anxious, it is under- stood here, to have definite assurances from the German governmeni that there is to be a continuaticn of the Young plan covering the reparation payments and that the suspension of debt payments fcr a year is not to be the beginning of the end of that plan. It is for that pu that the Freneh have insisted in their counte: &r‘eponx to that of President Hoover t the unconditional reparation payments by Germany be made to the Bank of In- ternational Settlements, even though the greater part of the money so paid in may be loaned back to Germany m- mediately. Sueh assurances can be ven only by the German government, t is stated, and cannot be given by the United States Government, which has nothing to do whatever with the Ger- man reparations. Laval Invites Germans. ‘The approaching visit of the German chancellor, Bruening, and Foreign Min- ister Curth terday by us, who were invited late yes- French Premier Laval to Paris early this week for a eonference, is fraught with impertant possibilities. ‘The announcement of the invitation to i the German officials was made by Premier Laval following a conference with the German Ambassador. This was subsequent to the conversations of Premier Laval with Secretary Mellon. If a definite and friendly understanding can be reached by the heads of the two governments, German and French, a great deal will have been accomplished. Many details remain to be worked out in connection with the final agreement regarding debt suspension, which will invelve several nations in addition to Franee, Germany and the United States. It is not expected that these can be dispesed of overnight, but that they will require patient consideratien for days. Ttaly and Belgium, and particu- larly the lattar, both have their prob- lems in connection with the debt sus- pension plan. Vote of Chamber Favorable. The fact that the French Chamber of Deputies on Friday voted over- whelmingly to support the French gov- ernment in its cordial acceptance of the Hoover propcsal for debt suspen- sion, even though it offered reservations calling for the payment into the Inter- natienal Bank of Settlements of the German ‘“‘uncerditional reservations,” was regarded here yesterday as a favor- able sign. Furthermore, it was pointed out that if there had not been such a vote of confidence in the French government by the Chamber of Deputies, the United States would have been in a diffieult position when it came to negotiating with a cabinet that might fall at any time. The opinion was expressed here that the United States could proceed now with the negotiations with the feeling that the Prench cabinet was in a position to make the outcome of the negotiations “stick” when they were later submitted to the Parliament. Agreement Is Seen Seon. ‘fhe belief persists here that ulti- ristely, and before very long, an agree- 1ient which is satisfactory to thig Gov- ernment will be worked out in” Paris in the conferences which Mr. Mellon and Ambassador Edge are conducting there, under the direction of the Presi- dent. The reply of the United States Gov- erngent to the Prench note on the debt suspension plan will be drafted in the light of the conferences which are now being held in Paris, and probably will contain a statement cf the adjustments which 2re expected to be rsached in those conferences It was sald at the State Department yesterday it might be several days, three or four, before the raply of this Government to the French ne'e is prepared and sent on its way. The Whit> House issued a statoment late yosterday denying published re- ports to the eff=ct that President Hoover 15 plannjng for some kind of an agres- ment_with the governments of South America to relieve the financial situa- tion in those countriss. The statement follows: “There is absolutelv no foundation for the st-ries circulated in the press to the ~ffect that this Government is considering plans for or discussions ecn- cerning Seuth American deb's. These remain, as do all private debts, sa'ely a relationship b-tws=en th= debtors end crediters. Our bankers have given aid during the depression to varisus South American countries and, o far as the dministration is aware. thoss countries ars making every effort fu'lv to main- tain their credit and confidence.” Does Not Close Daor ta Aid. The White House statem-nt does not close the doar, however, to American aid to the South Amerie republics. It merely means that such aid will not be a_strictly governmental affatr, but will be hendled through the Pederal | Reserve Board and private ban Th~ administration bhas heen int-vested in the financial situation deve'opine in South America for some time. Bolivia and Peru, it is revorted. have d-faulted on a V?\‘dml"“' 0,000 loans, 1 | in the United States. Am investments in Latin America, it is sald, total $1,330,000,000. i Stimson. | well as I the government, The eyes cf the world are turned to debt morator'um proposed by President Hoover. ward Paris, where Sscretery of the Treasury Mellon (left) is conferring with Premier Laval (second from the left) in an effort to reach an agreement on the Other offieials who figure in the neg-tiations, left to rigat from Premier Lavpl, are: Secretary of State Stimson, Foreign Minister Curtius and Chan- cellor Bruening cf Germany. HOOVER DELAYED IN DEBT GRISIS ;i Maintainzd Non-Intervention Policy Until Convinced Ac- tion Was Necessary. BY FREDERIC WILLIAM WILE. Just as Woodrow Wilson moved with rcluetance and after protracted dela; to throw the weight of the United States into the scales of war, so Herbert Hoover determined within the past week | upen American intervention in the eco- nomic eftermath of the war. The inside history of the program upon which President Hoover has just em- barke bears an amazing resemblence, in the eircumstances which led up to i | to conditions which prompted American | entry inte the European conflict 14 years ago. Then, as now, the Washing- ton administration was loathe and hes! tant to act. It “kept us out of war for two and one-half years. lieved there was neither need nor any thing approximating united public opinion in favor, of our “going in.” en, when German depredations on the high seas threatcned to do violence to American rights and interests, the | woyld make the depression of the past | United States abandoned its attitude of indifference. Our isolation from the Old World's turmoll was translated into full-fledged participation in it, with a view to ending it as soon as possible. Strietly European Prablems. Substitute terms of peace and eco- nomic distress for terms of war. and you have, in what has happened at Washington this month, a picture al most identical with the ene that pre. vailed here in 1914, 1915 and 1916 Three successive Republicin admini strations ine2' 1921—the Harding, Coolidge and Hoover Governments— maintained that reparations and debts were entirely unrelated. Repara- tions were a strictly Buropean problem, it was eontended. Th> $10,000,000, 000 owing the United States Treasury was a strictly American problem. They could not and would not be intertwined, Washington for 10 years maintained. The position was reasserted as recently as May 4, when, addressing the Inter- national Chamber of Commerce in Washington, President Hoover blasted a thousand European hopes by refusing [to dignify war debts and reparations with so much as a mention. He empha- sized the view that swollen armaments expenditure was the canker gnawing at the European economic heart. Sackett Changes Views. ‘Then thinis began irresistib’y to hap- pen. Within a few hours after the International speech, President Hoover received Fred- eric M. Sack:tt, American Ambassador to Germany, wha had just arrived from Ber.n. . Sackett's week in Wash- ington was unobtrusive, but, as now is known, was deveted to some of the most brass-tacks talk ever dinned into the ears of the President and Secretary Sackett reported that brave and determinsd a fight as the Hinden- burg-Bruening-Curtius government was making, the German situation was steadily drifting from bad to worse. The nation was in sullen mood. Hit- lerism and Communism were waxing stronger from day to day. Hestility ta crushing tax burgdens, necessary to meet reparaton payments, was no longer confinzd to the extreme radical groups in the Reichstag and the country. The sanest business heads in th: Reich, as were be- coming more and more coneerned over their ability to stave off catastrophic events. Unemployment was increasing, rather than diminishing. And, most perilous facter of all, the flight of cap- ital from Germanv. especiaily the ruin- cus deplstion of the R-icasbank’s gold supply, was confronting the govern- ment with a crisis beyond all pessibility of exaggeration. That, in sum and sub- stance, was the narrative that Ambas- sador Sackett, who is a conservative, shrewd and cautious lawyer and busi- ness man and not an alarmist, laid befare his ehiefs in Washington. Norman Brings Verification. About a fortaight previous more or less identigal reports about Germany werd submitted in Washington by Mcn- tagu Norman, governcr of the Bank of England. Tiey, too, made a deep im- pression upon the President, Secretary Siimson, Secrctary Mellon, Gov. Meyer of the Federal Res>rve Board, and other authorities with whem Norman con- ferred. When Norman's accounts of conditions in Germany were substanti- 2t°d by Ambassador Sackett, Washing- ton, probzhly for the first time, com- menced, in the terminalogy of slang, to “sit up and take nctice.” But the administration was nct yet ready to move, There wer» various indicatons that the American econemie situation was on the upgrade. Washington was desirous of seeing depression evaporate character and not comparable in any wav to e intergovernmental debts whieh President Hoever's proposal to th> European n2tions covers. A group of Amarican bankers, it be- cam® known vest>rdav. have app:oach-d the Federal Receve Board with refer- ence t1 sondirg A r-presentative to Latin America to study the whole ua‘ion. REQUIRES NO MORATORIUM Argentina Instructs Envey fo Inform U. 8. of Pasition. BUENOS AIRES, Juns 2% (#) —The m'nister of the treasury today instruct ed the Argentinian Ambassador at Washingten to inform the United States Government that Argentina neither expects nor requires my mora- torium of her internati-nal obligations and is prepared to meet them all. WIIL MEET OBLIGATIONS Cslemban President Cites Stand in Address to Congress. BOCQTA, Co'umbia, June 37 (A). —Colombia wWili maintain its intern: uumllI cfidl: oy scrupulous fulfillment of al ebt ebligations, Olaya Herrerra asserted taday address closing the Congress after Chamber of Commerce | l'nr.m.w: without any departure from the policy of non-interference in the reparation and debt field. About this time Washington began hearing from a variety of quarters which always command national offi- | etaldom’s ear. German and other Bu- ropean securities are held in the United tates nowadays on a colossal scale. It is estimated that up to December 31. 1920, Americans have invested abroad a tot~]l of more thandan.soonoo.onm g 3t | Counting these, Uncle Sam's “stake overseas can be considered to be well | over $24,300,000,000. In 1930 we piled |8 5.74 per cent ever the sum newly in- | vested in 1929. Nobody should make the thinking _this is “Wall 1t is the money of the {New Hampshire or the farmer in Iowa; |of the young factory foreman in New York or a seamstress in Central INi- | nois; of life insurance eompanies, of trust companies, of fiduclary institu- | tions of all kinds, which huy larger ar emaller quantities of foreign securities for invectment purposes. | \ Crash Would Affect Americans. It Germany were to crash—and im- | mense amounts of these American dol- lars are in German governmental, mu- nicipal and industrial bonds and stocks —and_with that crash, other disaster, | | the effect an the American pcople would | be immediate, widespread and serious. abiines | Washington, last month, and on an in- | tensified scale this month, was in- formed fram many authoritative Amer. |ican quarters that if anything of this | sort were to come to pass, conditions | might ensue in this country which | years tame and insignificant by | comparison | The concrete came with the statsment fssued at | Berlin at the end of May, on the [verge of the trip of Chancellor ! Bruening and Foreign Minister Cur- | tius to London. The German govern- | ment in that statement decreed a | ether $400,000,000 of emergency taxes. | It spoke of the insufferable privations | the Reich is now undergoing. It de- | elared, in so many words, that these had reached the limit. If these were added to Germany's back would break. | Bruening and Curtius made, of eourse, | sorresponding representations to Prime Minister MacDonald and other British | government authorities. The German tatesmen left Great Britain without any definite pledges of remedial Brit- ish action, because. as is now apparent, the British waiting for the American lead, which, they have ways insis‘ed, must be taken before there could be any all-areund amelio- rative world econcmic action. Castle Signals Action. On June 12 Bruening and Curtius boarded the liner Europa at Scuthamp- ton to return to Germany. ard ther | encountered—by prearrangement, as dor Sackztt, on his way back fo his pest at Berlin. The next day, Jume 13, there was forthcoming at the State Department in Washington an an- nouncement, the portentous signifi- cance of which can only be compre- hended in the light of subsequent de- velopments. William R. Oastle, jr., Undersecretary of State, speaking with full administration authority, teld newspaper men that, altheugh the United States adhered to its policy of regarding war debts and reparations unrelated affairs, it was ebvious that in case of demonstrated German in- eapacity to continue reparation pa. ments, the entire situation might pre- ent a different aspect. Thus was sig- naled the action with which, less than a week later, President Hoover was to electrify the world. On Priday, June 19, the White House announced that plan to bring relief to Germany was under consideration. hin 24 hours—en Saturday, June 20—the one-year war debt and repara- tion moratorium proposal was formally proclaimed. In the week between the Cestle announcement and the debt plan, Mr. Heover was in the Midd) West. His impressions of the seriou. ness of American business conditions re deepened by his contacts in In. diana, Ohlo and Illinols. Undoubtedly these had tkeir part in the action he was about to tak Hindenberg “Letter” Factor. President Hoover's final act, before deciding upon his fateful step, was to solicit from the heads of the German government a confidential, candid statement of its plight. To lend Ber- lin's reply the mest solemn significance, it took the form of “letter” from President von Hindenburg personally to the Chief Executive of the United States. The contents of this document have net been disclosed, and presum- ahly will not be. quested that it be considered strict! private communication. to Washington official statements, the Hindenburg “letter,”- which came by cable, wes not actually in hand here until after President’ Hoover's deht holiday proposal was made: publie. But it must have arrived at almest the same moment. The shrewdest guess is that Hindenburg wrote in terms of Ger men conditions other than purely fi- nancial and economic. As the com- monest understanding has been that the German governm~nt freely and frankly concedes the imminence of a Coemmunist avalanche if the country’s light is not remedied, some authorities belleve that Hindenburg's message to Hoover laid these partieular ea on the table. The Communist peril—the virtual eh<orption of Germany by Rus- sia and the danger of a Red wave that might 12p all over Europe—has always besn corspicvous in Washington's cal- culatinps of the German situation. Dawes and Young in Plan, Such, in broad outline, is the el - lagical history of the mo<t m.cmle';ms action taken by the United Ststss in world affairs since eur entry inte the World War. Two names not h’?uinbe- fore mentioned need to be alluded to in reciting the transcendent events of the past month—Charles G. Dawes and Qwen D. Young. President Hoaver was at pains on June 20 to say that bot these men had appro the morato- rjum scheme. Ambassador Dawes ar- rived here from London at the end of ay with corroberative data on Gsrman cenditions end conditi-ns in Europe generclly. His represontative went far | toward _earving President H-over | that further delay in coming to grivs with them was fraught with the gravest possibilitiss. 00,000,000 onto it—an increase of | development | must be supposed—American Amb2ssa- | y | should _be DEBT PARLEY HITS SNAGS AT OPENING Mellon and Edge Czble Home as Three lssues Arise, Awaiting Hoover Reply. BY LELAND STOWE, By Cable to The Star | PARIS, June 27.—At least two and | | possibly three obstacles to & Franco- | | Americayi agreement on the methods of | applying the war debt and reparations | suspension suggested by President Hoe- ver already have presented themselves to Andrew W. Mellon, American Seere- | tary of the Treasury. Walter E. Edge, American Arbassador here, and French government offietals in the proper. which opened today at the istry of the interior. In addition i min- here possibility of certain political ob- | stacles or conditions on the French side which may further eomplicrte an ac- eord between the Paris and Washt ton_positions. tiations will be difficult and that Ger- | many's position threatens to bacome so involved in the discussions that it is possible-that the prepesed visit of Dr | Heinrich Bruening. the German chan- cellor, and Dr. Julius Cur'ius, his for- eign minister to Prance, may be ac- | | celerated to facilitate the Praneo- | | American efforts, Paliey Firm As Parley Opens. The official opening of the new rep- arations negotiations, following the 386- {to-189 vete of confidence by the Cham | ber of Deputies in the government's | debt policy, took place at 3 o'clock this | |afternoon. ' The chamber's vote. which {came early this morning after an all- | night_session, in which some deputies | had denouncad the United States, stip- | {nlated that the government adhere to | its poliey of insisting on payment by Germany of its unconditional repara- tion annuity, 0 as to maintain inviola- bility of the Young p'an. At the conference this afternoon. Mr. | Mellon and Mr. Edge sat with J. Theo- dore Mapriner, counsellor of the Amer- | ican embassy in Paris, and Robert T. | | Pell, attache of the American embassy. | Sitting :n for the French were Pierre | Laval, the premier; Aristide Briand, foreign minister: Pierre-Etienne Flan- | | din, minister of finance; Prancois Pie- | tri, budget ministar, and Andre Fran- cois-Pencet, undersecretary of natonal economy. ‘Await Hoover's Reply. | On this basis France had, in the | three last named, a trio of financial | experts to one for the Unit:d States, | 2nd it is notable that. aside from Mr. | Mellon, the United States is represented by no first-class expert on the repa: tioms question, about which the whole French resistance centers. The meeting at the ministry of the interior lastzd just short of three hours; | Premier Laval, in a staiement, said: | | i | vill be held, but no | been fixed. It will probably be on Monday.” This strengthened the impression that eertain difficulties have been encounted which require lengthy communication with Washington over the week end and undoubtedly will neressitate a re- | ply from President Hoover before prog- | ress can be made. * Loan Clause New Issue. After the meeting Mr. Mellon and Mr. Edge went directly to the embassy and were in immediate communication with Washington, for which purpose the services of stenographers were re- quired. _Officially no confirmation that any difficulties had arisen were given, but three obstacles are strongly indi- caled by yesterday's and today's events. Pirst, it is learned that Washington objects to the portion of the French reply which, offering to return France’s unconditional _annuity of 500,000,000 | marks ($118,750,000) to the Bank for International Settlements for use in loans to Germany, then states: “Also in the eountries of Central Europe.” ‘The American view—which it is be- lieved Mr. Mellon stressed to the French ministers today—is that under the Hoover plan the whole of the benefits | arising from the suspension of pay-| ments should go to Germany to aid her economic recovery, and that for that reason France should agree that the whole of her unconditional annuity lent baek te Germany in- stead of being scattered over Central Europe, espeeially since in the latter case a cansiderable portien might be diverted to France’s smaller allies, in- cluding Poland and Rumania. ‘Want France to Take Risk. i Secord, and even more important, is he method proposad by France by which the Bank for International Settle- | ments would assume responsibility for lending France 500,000,000 marks. hi 's reaction to this is said to n sueh procedure Prance would not assume any direct, risk, which latter weuld he laid rather upon the Bank far International Settlements, where the sharehalders of all the participating eountries would carry it, although at the end of the year's suspension the mecney would be assured of retumning to > | ce. In a nutshell, the American position | ho is going to take | uneonditional por- tion loaned to Germany and why should not France assume this risk directly in- e3d of the Bank for Intarnational Settlements?” Third_an ebstacle as yet not clnrg INSPECT TODAY 2 rooms, kitchen and bath, electrieal refrigeration. Rental, $60 ger Month | meny Young plan permits s delay | 50 subject. egotiations | Tonight's evidence is that the nego- | g - | they come te Paris in the near future. | mony established, but worrying certain finan- elal experts, and likely to develop to a polntu where |.helw£ul‘gv !lfia‘ :"o rnnceh': counter proposal as] n mi be changed, is the matter of aeuwgu in kind arranged under the Young plan, whereby to ease Germany's financial payments and to ald her economy is permitted to cover a portion of h reparations payments in goods and ma- terials on a sliding scale during the ecrly years of the life of the Young p'an. For the current year virtually all France's conditicnal receipts from Ger- that pertion on which the re in deliveries in kind to a total value of 334,000,000 marks ($79,325,000). For weeks past it has been a debata- | ble question among reparations experts and officials of the bank for interna- tional settlements whether deliveries in kind under the Young plan would be subject to suspension that might be declared, and the fact is that legal experts appear to doubt that they are Therefore it is possible that France would still receive her deliveries in kind from Germany even under the Hogver plen, and this would save for her 334,000.000 marks, or v'rtually all the conditional payments which the | others are asked to sacrifice. . S. May Oppose Scheme. In this respect one phrase in the French reply assumes great importance. The French ag:ee to vield the uncondi- | tional annul by turning to loan uses | “under the s-le reserve for the amounts necessary to the execution of the bal- of deliveries in The que: posed. therefore, whether by this Prance e tain the whele or a larre pari of her deliveries in kind under the Hoover plan, and whether, if this is so, Wash- ington will agree to such arrangement. whieh, of course, would decidedly reduce France's sacrifice. The French argu- ment s that deliveries in kind are a constru-tive help to Germany's eco- nomic production, and if eliminated wculd reduce radically Germany's ex- ports. France May Demand Assurances. Aside from these obstacles, there is reason to belieie that the French min- isters reminded Mr. Mellon that the: felt justified in expecting eertain politi- cal reassurances from Gsrmany which might not be termed conditions. In any case, France is likely to demand. in re- turn for accenting the Hoover plan in principle. that assurances be given her, | as_follows: That the large sum that Germanv will have at her disposal as a result of the debt holiday will not be used in part by Berlin for loans to the Soviet Russian government—=ss hinted in the French note's phrase, “not to aid dumping.” That Germany renounce all projeets of anschluss (political union) with ' Austria. That Germany promise to use no part of these sums for increased armaments. ‘These are political issues in which the Americans are scarcely likely to in- volve themse'ves, but which a1o certain to be argued boldly or hinted at here and which surely will be posed by the French to the German ministers when | Explain Plan to Americans. Wihout these political differences. | however, a sufficient number of tech- nical problems relative to reparations has already confronted Mr. Mellon to | require considerable negotiation, and | some of them may prove difficult. It is stated that the greater part of the 3-hour ecnversations of this afternoon was occupied by an explanation of the French note and also of the funetion of the Young plan. Apropos of this, it from French sources that | mueh time was required to clarify ce: tain technical aspects of the Young plan with whieh the Americans were not entirely familia; For this reason and for the rapid termination of the negotiations, it is viewed in some French circles as re- grettable that Ameriean reparations ex- perts were »not included among the American spokesmen. The oconvers tions tcday were occupied with ex- planations of the poltical limitations under which Mr. Hoover labored on ac- count of the American Senate, the French government's absolute restric- tions as imposed by the Chamber of Deputies, and the latter's vote at 6 am. | after a 15-hcur session. (©oprright, 1931, COMMANDS AIR FLEET SAN DIEGO, Calif, June 27 (#.— Command of aircraft of the fleet battle foree was delivered to Rear Admiral Hatry E. Yarnell today by Rear Admiral Joseph M. Reeves in a celorful cere- aboard the U. 8. S. Saratogs, glant Navy aireraft earrier. Admiral Yarnell, four years ago com- mander of the Baratoga, came here from Washington, D. C., where he had been chief of the Bureau of Engineer- ing of the Navy Department. Admiral Ree.es, after six years spent in comntand of the afreraft, was as- MELLON AND LAVAL " UNABLE TO AGRE Split on Reloaning German' Unconditional Annuity Payments. (Continued Prom Pirst Paj narrow the scope of the discussion | that rapid progress can be on Monday. The Bruening-Curtius visit to Paris will, it is expected, create an entirely new political atmosphere. Contact between Mr, Mellon and Herr Bruening is egpected to have as much effect as contact hetween Premicr yLaval and the German chancellor. | Laval Makes Plan Clear. It is believed that from the double set of meetings there will develop a candid estimate of Germany's finaneial difficulties and a renewal of Germany's promise to consider the unconditional portion of the Young plan annuities as ;xnde!ernhle, even though deferred in act. Premier Laval's purpose was made clear in last night's declaration before the Chamber of Deputies that he want- ed Germany to agree to the French plan of paying unconditional annuities into the Bank for International Settle- ments, although such payments would be largely for Germany's own use. The French hope that Mr Mellon will sce no abjection to this, thus encourag- ing the Germans to consent and assur- ing an agreement on the Hoover pro- pesal. The negotiations are recognized to be delicate, but the faet that the confer- cnce is to be resumed soon is considered an indication that all parties hepe for agreement. 3ERLIN PRESS HITS ATTITUDE OF FRENCH Courier Says “France, Feering Iselation, Has Isolated Herself.” Soersen By the Assoefated Press. BERLIN, June 27.—Comment in the Berlin newspapers concerning the French attitude toward President Hoe- ver's meraicvium plan follews the ner- mal party ines. The Democratic Vossische Zeitung says it is not time to give up he that France and the United States will come to ,an agreement. and the Tageblast expresses confidence the French desire for peace will prevail. The Boersen Courier, however, as- ser.s that “France, always ruled by fear of isolation, has isolated hersell.” The Nationalist Tages Zeitung says, “The French reply shows every one that no recone! ion is peesible be tween the German will to live and the French determination to keep Germany in permanent subjection. GERMAN AMBASSADOR CONFERS WITH GRANDI Two Long Conversations on Debt Plan are Officially Described as “Interesting.” By the Associated Press. ROME, June 27—Foreign Minister Grandi is understood to have had “sat- isfactory” comversations with German Ambassador von Schubert today and yesterday regarding the use to which the Germans would put their one-year respite from reparations payments. The two long conversations are effi- cially described as “interesting.” It is known the foreign minister pre- sented the Itallan viewpoint regarding Germany's obligation to refrain from utilizing her regained strength to the disadvantage of her benefactors. i I Unfurnished Apts. 1, 2 and 3 Rooms FOR RENT COPLEY COURTS 1514 17th St. signe- to the Naval Board of I tion ey as chief of the ‘West Coast Division. - The terms of Morris Plan MORRIS PLAN Loans are simple and prac- tical—it is not necessary to have had an account at this Bank to borrow. Loans are pass- ed within a day or two after filing ;& l‘llcat on— fow excep- tions. MORRIS PLAN BANK Under Supervision U. S. Treasury 1408 }J Street N. W., Washingten, D. C. ““Character and Earning Power Are the Basis of Credit” BELGIAN DILEMMA ARISES OVER DEBT Prospect of Deficit and Fear for Future Are Opposed by Rally on Bourse. By Cable to The Btar. BRUSSELS, June 27.—No other coun- try has been thrown into greater per- ity and confusion then Beigium by t Hoover's offer _coneerning debts and reparations. Instead of rais- ing enthusiasm and hopes for better business, it put the Belgian government face to face with & heavy deficit and public feer for the the press and on the tribune of the Senate, while in a long series of laborious conferences ministers of foreign afairs and of finances worked on the draft of & repiy | ‘ashin; te be sent to Wi ‘The situation of appea extremely difficult immediately upon ceipt of the full text of Hoover's ment. Even at the first glance at table of the year's payments ceipts it could be seen that exceeded the former by more 000,000 francs. Thus the ican offer meant for Belgium a net loss, while the gain coming from the even- tual rally' of business seemed a mere possibility looming on the distant herizon. Budget Balance Periled. A deeper siudy of the Belgian posi- th While Hymana, the minister of forei affairs, proved Yo his colleagues it would be impossible fe1' Belgium to remain iso- lated in such anyimportant international uestion, Baron Houtart, minjster of ances, retorted’\that the pure accept- ance of Hoover's s\iggestion would leave him with no funds to belance the budget. “Last year's budgh't,” he said, “shows already & gap of almost 2.000,000.000 franes. It is only passible to fill it by voting new taxations aud raising the in- ternal loans. But during the coming Fall and Winter the in\'ome from taxes is bound to be insuffielent again and the 1ack of receipts from G\>rman repari tions could net possibly §be met by the higher taxes.” The situation was so \intricate and of ruch far-reaching ct that the King himself expressed sire to con- fer with his ministers befare any de- cision is taken. And, while the mem- bers of the government put fileir heads together to find a satisfactory solution, their position was rendered maore deli- cate by the harsh eriticism of the American proposal made in the'Senate and the press. Speaking from the Tri bune, the Catholic Senator s de- clared it would help Germany, but' was dangerous for Belgium. German Burden Halved. ‘e must ask serious political jfuar- antees in exchange for our sacrilice,” he sald. “Before the war Germwany could spare 4 per cent of her bucget for military preparation, while the rgp- arations payments only require 2 ;?év cent. Thus this is not an overwhelm- ing burden, while Bolgium may suffer! more than any one else from any cut in_reparations. Even stronger arguments against Hoover's suggestion were put forward by the majority of Belgian papers. “Germany can be helped only if Amer- jca and the allies impose upon he: policy of peace.” wrote Le Sofr. * cause if she gets support and does not abandon her war-mindedness, we will run the risk of seeing soon at our fron- tiers Attila's horse Only one factor spoke in Belgium in favor of Washington's move—a sudden rally of prices on the Brussels Bourse. After the United States, this country certainly has been the heaviest gam- bler on the stock exchange during the blessed time of boom. The fortunes of great capitalists and the savings of small employes have been invested in | stocks and wiped out by the .collapse of the shares. The hope to see busi- ness pick up and prices rise on the Bourse are an important stimulant for the Belgian people and may outweight pelitical fears. oIL RECEI\TER NAMED DEL RIO, Tex., June 27 (#).—The Terrell County District Court _today ordered the C. C. Julian Oil & Royal- ties Co. of Texas placed in the hands of a receiver. . B. Wardlaw of Del company. Hearing on the.case was set for July 13 at Sanderson. . lll ril on revealed iis inferiority even better. | GERMANS LOOK - TENSELY TO PARIS Business Leaders and Citi- zens Ask: “Can Hoover Convince Them?” By the Associated Press. BERLIN, June 27.—On the eve of the eighteenth enniversary of Sarajevo and 12 years after the treaty of Versallles, statesmen, business leaders and millions of German citizens look tensely toward Paris for the answer to their question, “Can Hoover convince them?” Tt is the firm convietion of all except the Left and Right redical fringes that President Hoover himself realizes Ger- many’s plight really is serious enough to justify the course he has taken in proposing an unequivoeal 12-month armistice on reparations. However, the Prench reply to his proposal has shaken the hope that Paris might see the sit- uation in the same light. ‘Today the government refrained from officie]l comment on the French answer and appealed to the press to withhold comment until Andrew W. Mellon's con- ferences vn%h the Prench leaders have further. QOites American Confidence. Ine h today before the German Bankers' Federation, however, Chancel- lor Bruening referred indirectly to the | anti-dumping and anti-armament stip- | ulations by the PFrench when he said {the most significant feature of Mr. | Hoover's proposal its expression of America’s confidence that Germany, if she were granted relief from the war burdens. would make the proper use of | the capital thus released. Cordial acceptance of the Hoover plan elsewhere indicates the spread of this eonfidence to other lands, he add- ed, “and that it may spread everywhere (he emphasized the word) is our ear- nest and heartfelt desire.” Hans Luther, president of the Reichs- bank, and Georg Solmssen of the Na- tional Bankers’ Association, also avoid- |ed direct mention of the French reply |in their speeches at the same gather- ing, but -Herr Luther asserted Ger- many's distress was merely an acute phase of the world-wide economic sick- ness. | “Sin Against Capitalism.” The world must act quickly in its own interest, he said, and Herr Solms- sen warned that if Germany must con- tinue to be the Atlas on whose shoulders rest the whole debt “structure of the world, then the world must take care that Atlas does not collapse under his burden. The real root of the present world crisis, sald he, lies in “the fact that the Young plan, as well as all previous attempts to regulate reparations, is a sin_against the spirit of capitalism Premier Laval's speech in the Cham- ber of Deputies .at Paris today has somewhat dampened the ardor of the German cabinet for an early Franco- German conference, which Chancellor Breuning suggested several nights ago in _a radio address. There is some disappointment that | he spoke as he did. but there is a ten dency to make allowances in v of the premier's difficulties with the French Nationalists. At the same time there is some regret that he should have departed from the confidential haracter which marked the meetings | Your Furs 1 with experts | Tor twenty-five years furs | hawe been entrusted to us for \ safekeeping. | \ provide | chests Tlarge family use. 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