Evening Star Newspaper, July 1, 1931, Page 4

GERMANS REFUSE ADDED CONMENT Bruening and Curtius Remain Silent on Debts Pending French Negotiations. By the Associated Press. , July 1.—Until President | Hoover and Premier Laval of France| have 'n their last word, Chancellor | and Foreign Minister Curtius of Germany will decline to be drawn into the controversy over the Hooves war debt moratorfum plan. | Standing by their acceptance of the , &s set forth in their cable to the American Government lact Sunday. they took the position today that there ‘was nothing to add to that message to America. Heover Commended. | An editorial in the Cologne Gazette | was considered a fair representation of what the German reople think about the situation. “Our bopes and prav-| ers are with the American President, | 1 Who until now has stuck to the funda- | menta) principles of his idea with amazing tenacity,” the editorial said | Few persons in Berlin outside of a | small circle of political correspondents | know what an important utilitarian irt in the debt proposal negotiations being played these days by a certain | American-made limousine bearing the Prussian license pla‘e No. 14. When No. 14 stands before the offi- eial residence of Chancellor Bru°ning or before the office of Forecign Minister Curtius it means that United States Ambassador Frederi~ M. Sacket? is con- ferring about the fate of the Hcovar proposal. Usual Piace Teday. Since June 20 this car has been parked more frequently in front of the Bruening residence or the Curtius office touch with the German state. Dr. Curtius’ promise that nothing would be undertaken concerning repa- rations without informing the United States Government is being carefully observed. Number 14 was at its now accustomed place in the Wilhelmstrasse ear]y today. COMB RIVER FOR BOY Police Continue Search for Colored Youth From Alexandria. Harbor precinct police were still dragging the river this afternoon in an effort to recover the body of James Kyer, 17-year-old colored boy. of Alex- | andria, Va., who wes drowned in the Potomac River near Alexandria late day. The police bezan dragging river last night for the body. According to police, Kyer fell over- board when he stood up in a boat. CONDITION IS GRAVE | Mme. Paderewski's Illness Keeps Pianist From Wilson Ceremony. | MORGES, Switzerland, July 1 (#).— | The conditicn of Mme. Paderewski, wife of the pianist, was pronounced very | grave by the family physician, Dr. Raoul | Machon, today. He advised the pianist that his departure for Poland to attend the unveiiing of a statue to Woodrow Wilscn would be incpportune. Will Rogers . . BEVERLY HILLS, Calif.—No news outside those fiyers making a sucker out of the world. South#rn Meth- od.st Conference out here passed resolution ask- ing Congress to exempt. from war. Don't know what claim they had over other de- nominations un- Jess _it's that they are always fighting s0 much among themselves that two wars at once would b> a hardship on _‘em. Mellon is still coaxing the French. Looks like he will have to give 'em a “bonus” to accept his plan. EMMERSON SEEKS FINANCIAL RELIEF | continuing Meets With Business Lead- ers and May Call Special Session of Legislature. Bv the Associated Press CHICAGO. July 1.—-Gov. Louis L. Emme s n attended a conference of State busin-ss leaders to consider the critical financial future of the State tadey and agreed to call a special ses- sion of the Legislature to act upon any relief measures the conference pro- posed. Tre Governor offered no solution, giving a free hand to the bankers, ex- ecutives, publishers and civic and bus- iness leaders in attendance. “Bankruptey and default cn public debts stare us in the face in Cook County and some downstate counties,” sald Gov. Emmerson. “The people of ‘Imn'is and particularly Cook County confront a revenue situstion unparal- leled ir this or any other State.” Delayed Collections Two Years. The State’s financial difficulties arose from the 1ees: qu2drennial a: the Stzte Tax Commission found to be unequal. The resultant delay put the collections two years behind and added & burden of interest on tax money gathered in advance by the sale of tax anticipation warrants. An income tax proposition. incidentally, was decfeated at the polls last November and the recent legislative session made no head- way toward permanent relief, jettison- | | |Officials View Tomorrow's| THE EVENING U. 3. STILL HOPEFUL INDEBT SITUATION Scheduled Meeting With Optimism. ___(Continued From First Page) as she elf is concerned, pending the final decision in regard to the Hoover [plan. Belgium, in a cordial n-te, has accepted the Hoover plzn in principle, Laval Given Support. Whether the United States and the | other nations will be compelied to go ahead with their plans without tne | co-oparation of France dcpends en- upon what happens now in Paris. The vote of the French Senate yes- terday, giving its approval to the reply | of the French premier to the Hoover proposal, may or may not mean the final rejection of the American pro- posal. Premier Laval, even under that vote, is given leeway in the matter of the negotiations. Both houses of the French Parllament have vo.ed their approval of the cabinst's course so far in the matter. The position of this Government in | regard to the French counter proposal to the debt-suspensiod plan, which was | made clear to the French today by | Secretary Mellon, has been explained in detail by high officials of the Gov- ernment hcre. The French in their counter proposals insist the German unconditional repa- rations shall be paid into the Bank for International Settlements in the com- ing year and that these funds may be loaned by that bank not only to Ger- many, but also to other Central Euro- 'pean countries which may be pinched financially because of the debt suspen- sion The French also propose that the loans to Germany by the Bank of In- ternational Set'lement shall be made to German industries and not to the German government. Doesn’t Meet Principle. The United Stats Government takes the position that this proposal of the French is not in conformity with the | underlyirg principles of the Hoover pro- ssment after the usual | essment of 1923. which | ing the bills sp-nsored by Mayor Anton | J. Cermak 2s remedial Chicago and Cook County. Greater Than German Debt. Describing the crisis, Gov. Emmerson told the conference that two § taxes must be collected within a 'y in Cook County (Chicago) and tax- payers faced payment of $548.648 000 an amount greater than the annual renovations payment required of Ger- many. measures for | posal, it was said in high official circles. The Unit>d States insists that to give Germany the full measure of relief con- templated. all of the money paid into the Bank of International Settlement by Germany as unconditional repara- tions_shall immediately be loaned to the German government, thereby mak- ing it a mere bookkeeping transaction. Oruginally. the United States proposed that all intergovernment debt pay- ments be suspended for one year, in- cluding Germany's unconditional rep- araticns. propesal, eonta‘ned in the note, trans- mitied to this Government, did not ac- cept the spirit of the Hoover plan, it was said. This Government then made a eounter suggestion that immediately after Germany had peid her uncondi tional reparations into the Bank of In- | ternational Settlement the whole sum wou'd be loaned to the German govern- ment. This, it was pointed out, has not | been accepted by the French. Disagree on Time. Furthermore, the French have pro- posed that the postponed debt paymants be paid within the next five years. This Government regards such an arrange- ment as too burdensom- and calculated to prevent a full enjoyment of the Eicur nearly eig avera fions on © phone ca years \ls. Tae reply of France to this!| ht minuies,o make connec STAR, WASHINGTON, benefits under the Hoover plan. Not only would Germany be expected to pay within the five-year period the repa- rations which would be postponed dur- ing the coming year, thé postponed intergo 3 cluding those of the United States, would have to be paid within a five- year period. The United States is asking that these postponed payments be repaid in the course of 25 years. To this the French have replied that at the end of the five-year period suggested by them they might be willing to extend the payments for another five-year period and at the end of the 10 years for still another five years. To the United States Government this docs not appear to be a feasible course. Purther- more, the French would make it a con- dition for further extension that the Young plan relating to reparations be in_ full force at that time. In the statute of the Bank of Inter- national Settlement there is a clause | that loans shall not be made by the benk to governments. This has been advanced by the French in support of thelr contentions that the German reperations paid into the bank this year may not be reloaned to the Ger- man government. The American posi- tion, however. is that this difficulty could be ironed out if the French were willing. Unconditional Payments. Another condition made by the French relates to the so-called guar- | antee plan under which France re- | celved the major ion of the Ger- man unconditional reparations, to be | 2pp'led in the devastated region of France. The French, needing this larger proportion of the German un- | conditional payments, agreed that if at any time Germany should declare a | moratorium and stop payment of rep- | arations, the French would put in the | Bank of Intern-tional Settlement 500.- 1 000,000 marks, which would be used in | A measur» 1o recompense the other na- tions recelving reparations, tempo- rarily. France is now demanding that it shall not be c:mpelled to put up this | money if Germany declares a mora- torium in the future, but that the monev which is to be loaned Germany by the Bank of International Settle- ments under the proposed plan shall be the guarantee fund. This is the money which Germany herself would pay in unconditional reparaticns. The American Government takes the position that it has nothing whatever to do with the question of this guar- | antee fund and that it is not in its present negotiations with France go- ing into that subject. It was explained today that this is a matter which France must negotiate. if it desires, with Great Britain, Italy and the other nations which receive repsrations from Germany and which are signatory to that plan Might Compromise. This last condition advanced by the French is one to which that govern- ment is roported to be adhering firmly. | It was made clear today that the United States Government m'ght com- 25 yoars it proposes as the period in which the postpcned payments of inter- governmental debts may be paid. This Government, however, will insist that the money paid by Germany as uncon- Giti‘nal rep:rations be loaned by the | Bank of International Settlement to the German government in full. It also will insist that it has nothing to do with the guarantee fund already dis- cussed, and that France must take thit up_with other nations if it desires. | . _The Belgian government in its reply to the United States, accepting in principle the H-over pian, said: “The Belglan government has re- | eeived with pleasure the proposal of the President of the United States as |an act of high significance. It regards it is inaugurating a great enterprise of internationa! solidarity which tends to- ward the restoration of world econom and the bare prospect of which has al ago it took n the 1 d of connec verage spee ?'\ons onall out-of-town ca::: —no matter how great ;‘__ e—is sixty geconas distanc JUST ONE MINUTE! Eight years @ fivedaystoawe intr Y. in the s in ' be:l'.r telephone service: go it took from ok fromthe g the past few interest of furnishing THE CHESAPEAKE AND POTOMAC TELEPHONE COMPANY 725 Thirteenth Street N. W/, (Bell System) MEtropolitan 9900 D. C, WEDNESDAY, ready revived a fesling of hope and confidence on every hand. “The present serious difficulties can- not, indeed, be overcome unless the peoples of the world recognize their common interests, put aside all causes of disquiet and discora, unite their ef- forts and tolerate a broad spirit of co- operation and mutual assistance. The Belgian nation sincerely hopes for the success of the American initiative. “It is unanimous, however, in re- calling that Belgium has an impre- scriptible right to reparation for the damage which it has unjustly suffered. This right has becn sanctioned in sol- emn declarations of the governments as well as in the agreements which have been entered into by them. This right has n ver been tontssted and as a re- sult Belgium has, in the reparations and war debts settlements been granted special treatment which there is no reason to abrogate. “Under th'se eircumstances it would manifestly be inadmissible that the pro- posed mutual assistance should impose on Belgium unduly onerous conditions and should expose it to serious financial difficulties. With these considerations in mind, the B-igian government ad- heres very sincerely to the principle of Representative 8ol Bloom of New York, | the proposal, convinced that the Presi- dent of the Urited States will re 1ze the necessity of settling the detatis in such a way as to adapt the proposed plan to the legitimate special situation and rights of Belgium.” ‘The Italian Ambessador left with the Acting Secretary of State the following copy of & telegram which he received from the Italian minister for foreign affairs: “Please inform the American Gov- ernment that, according to its accept- ance in principle of the United States Government's proposal, and pending a JULY 1, 1931 Adams at Helm, Wearing Cocked Hat, Seen Pa- triotic Move. Bloom Suggestion of Cruise Feature Recalls Sailing Qualification. A suggestion that Secretary of the Navy Adams take the helm of “Old | Ironsides” during her forthcoming tour |of Eastern ports was made today by | assoctate director of the George Wash- ingtgn Bicentennial Commission. | Mr. Bloom is understood to have | presented the idea directly to the Sec- |retary at a conference with the latter |this afterncon regarding the commis: {sion's proposal that the frigate Consti- [ tution sail under her own power and | with & crew in the uniform of 1812. | The Constitution was recommissioned |today at elaborate ceremonies at the NAVY SECRETARY AS SKIPPER ON “OLD IRONSIDES" PROPOSED of the Navy, Jahncke, /ssistant of the Navy. Chaplain E. W. Scott, U. 8. N., was designated representative of the Boston leration of Churches, Willlam Cardinal O'Connell, Archbishe All vessels in the Navy Yard were or- denlll to dress ship for the coming cere- monies. 0. 4 FRENCH DEBT STAND | . HIT BY HARRISON isennwr Says He Hopes Hoover | | Will Make Separate Pact if | Country Balks Plan. | __ SEORETARY Avams. | . | cocked hat, gold lace-trimmed coat and | white pantaloons of a naval captain of | 1812. His men would wear blue jackets | and trousers and red vests, with yellow | Harrison, Mississippl, ranking Democrat ]buxmn., on the Senate Finance Committee, in | The question of whether whiskers |20 address yesterday at a civic club | should be worn, a point raised by As- | luncheon, said that “world public opin- | sistant Secretary Jahncke, has been |ion will not stand for France wrecking y the Associated Press. BILOXI, Miss., July 1.—Senator Pat definite agreement among all the coun- | Charlestown, Mass, Navy Yard. As-| wttled negatively by recourse to naval | the proposal” of President Hoover for a tries concerned, the Italian government is ready to hold in suspense, in a pro- visional way, the collection of the sums to which it is entitled in applicasion of the Young plan and Hague agresments, falling due on July 1. In a correspond- ing way the payments owed by the Italian government at the same date will be deposited in a provisionsl ac- count with the Bank of International Settlements “This same communication is being ' made to all ths governments which are creditors or debtors. GRANDL" BELGIAN PRESS REGRETS DEBT PLAN ACCEPTANCE By the Associated Press. BRUSSELS, July 1.—Commenting on the text of the Belgian reply to President Hoover's war debt proposal La Nation Be'ge today regrets that the government abstained from making any counter suggestion, as the French did. The newspaper particularly singles out the government's failure to stipulate that the market annuity should not be included in the moratorium. Tre only positive result for Belgium, the news- paper eoncludes, is trhat $16,000,000 are added to this year's budget. Belgian bankers have $27,000,000 in a per cent interior loan offered at 96 to cover part of the bud- get deficit, snother $30.000000 to be raised by increased taxation. The Riggs National At Close of Business, June 30, 1931 subseribed | | sistant Secretary of the Navy Jahncke, |who has volced oblections to Mr. | Bloom’s navigation plan, took part in | ths exercires. | “'In behalf of the suggestion that the Navy Secretary bezome skipper of the “fe_vesssl. it was pointed out that e‘arv Adams is a recognized inter- national authority on the art of sailing. Racing Yatcht Captain. He was caotain of the American rac- ing yacht Resolute when it defeated | Sir Thomas Lipton's Shamrock IV in | the international races off S8andy Hook lin 1920 and was skipper of the schoon- er Atlantic. which finished second in the transatlantic race for the King of Spain's Cup. just prior to Capt. Adams’ appointment to the cabinet. ‘While Secretary Adams apparently | has had little or no experience with square-rigged frigates, a type of wv¢ | extremely scarce today. terized as a natural-| | Mr. Bloom is convinced he could com- mard the Constitution with little prep- aration Mr. Bloom is of the opinion such a move by Secretary Adams would be a | “grand patriotic gesture” calculated to insure success of the Covernment's pro- gram for arousing Nation-wide interest in the cruise of the ship. Further stim- | ulants. he contended. would be the sight of “Old Ironsides” under fuil sail with- out the services of a tug and manned by officers and men dressed in the quaint garb of old. Under the latter plan, Secretary | Adams would have to dress in the Condensed Rep records and old prints, which upheld |J6AI'S suspension of international debt e e e heen 15 fanor O €Y 89" | petter i Will be, not only for the United Jahneke's chief objection to the plan | States, but for the entire world." he for “Old Ironsides” to use her own sails | {ald. | (1f France remains adsmant, u‘ 1hl§ herx calreful])]’dnzl:‘ged schedule | pen © HOBE | p!‘w":“m‘; n‘;:m{:"m! of port arrivals wou srupted. To - 2 4 = this Bloom has replied that a tug could | P00 of the inter-government pay. canvoy the old ship and tow her if she | [° O became becalmed or encountered storms, | ¥ TA1Ce | “France will bs hurt more than she FRIGATE READY FOR SEA, | V!l be heiped by that arrangement. In that event the United States and Great e T | Britain will expect France to make an- Old Ironsides” to Begin Tour of East- | nual payments on her own debt, and | ern Ports Tomorrow, ch> will have little left out of collee- | BOSTON, July 1 U@ —With more | HONS Mmade from Germany.” ceremony than attended her original departure from Boston on a mission of | war more than a century and a quar- | 1 ter ago, the frigate Constitution, most famous of all American warships, was | today made ready for sea again. As sound and fair once more as a maiden vessel, only today's commission- |ing ceremonies, turning her over to Comdr. L. J. Gulliver, her new master, held her in port. Tomorrow at noon she will slip down the harbor in tow of the Navy tug Grebe to begin a tour of Eastern seaports. To Lieut. John A. Lord, the last naval | | constructor of wooden ships in the serv- ice. goes much of the credit for restora- | tion of “Old Ironsides” to seaworthiness. | ! As a labor of love. he replaced every u Amt.of Deposit Note For 12 Months $10 s1s $20 $25 $120 $180 $240 $300 $360 $540 ' detail as humanely possible to the proud ort of Condition of Bank OF WASHINGTON, D. C. Resources Loans and Discounts U. S. Government Securities .............. All Other Securities Banking Houses and Furniturie. nnd Five per cent Redemption Fund. . .. Due from Banks ... Cash and Reserves. .. o SO Fixtures. Customers Liability on a ¢ Acceptances Executed Liabilities Capital' . .......0.000 Surplus ........ Net Profits and Reserve for Contingencies. Reserve for Taxes and Interest. ... Deposits Circulation ..... 57,586,294.01 1,000,000.00 Agreements to Repurchase U. S. Govt. Bonds SO Acceptances Executed by Other Banks. ...... Other Liabilities ... ' Your attention is called to the STRONG LIQUID CONDITION shown by the above state- ment and to the SEVEN CONVENIENT LOCA- TIONS at which the service of this bank is available. NORTHWEST 18th Street and Columbia Road DUPONT CIRCLE 1913 Massachusetts Ave. N.W. > $67,301,804.66 14.412,518.87 5,959,422.41 2| 10,300,056.63 6,146,499.84 $67,301,804.66 $3,000,000.00 3,000,000.00 1,067,489.08 1,483,504.68 OFFICERS ROBERT V. FLEMING President General Banking Department WILLIAM J. FLATHER Vice President AVON M. NEVIUS Vice President GEORGE 0. VASS Viee Presidemt and Cashier H. G. HOSKINSON Vice President Assistant Vice Presidents EARLE M. AMICK NELSON B. O'NEAL Assistant Cashiers 7. G. BURROUGH 1. J. ROBERTS B. GWYNN DENT GEORGE F. RAINEY HULBERT T. BISSELLE DANIEL J. CALLAHAN. Jr. HARRY L. SELBY HAROLD W. BURNSIDE CARL H. DONCH GREGG C. BURNS RALPH R. DEPREZ BERNARD 1. BOUDREN W. EDMUND PREEMAN RAYMOND G MARX Comntroiler R. EAR'F HAYCOCK Auditor 1483,343.92 34,956.99 50,000.00 15,006.00 Trust Department SIDNEY F. TALIAFERRO Vice President and Trust Ofcer GEORGE M. McKEE Assistant Trust Ofcer KENNETH F. BROOKS Assistant Trust OMeer Legal Department FRANK J. HOGAN General Counsel WILLIAM H. DONOVAN Assistant Gemeral Counsel DIRECTORS CHARLES C. GLOVER. Chairman C. C GLOVER. Jr. Vice Chairman WM. J. FLATHER H. ROZIER DULANY STERLING RUPFIN LOUIS F. JEFFRIES HENRY B. SPENCER JULIUS GARFINCKFL FLEMING NEWBOLD C. POWELL MINNIGERODE WM. M. RITTER HARRY F. CLARK FRANK J. HOGAN RANDALL H. HAGNER ROBERT V. FLEMING COLEMAN JENNINGS JOHN OLIVER LA GORCE . KARL W. CORBY JOHN 146,230.81 15,006.00 3,280.08 J. PERSHING Seven Convenient Locations MAIN OFFICE 1503 Pennsylvania Ave. N.W. BRANCHES FARMERS AND MECHANICS Wisconsin A: PARK ROAD 14th St. and Park Road N.W. Founded 1836 ve. and M St. SEVENTH STREET 7th and Eye Sts. N.W. FRIENDSHIP Wisconsin Ave. and Warren St.