Evening Star Newspaper, January 17, 1932, Page 3

BOND DEAL ‘LEAK HITBY STIMSON Secretary of State Clashes With Johnson Over U. S. “Secrets.” (Continued From First Page) established practice of making public to the fullest extent the policies pur; sued by the department and ever agreement of whatever character in th conduct of the foreign relations of this Government “It has been and will-continue to b, however, the policy of the State De- | partment under my administration to | keep as confidential the reports which it receives from its representatives in forelgn countries regarding the cur-| Yent exchange of views which the: have with officials of those countries and the frank opinions ch thes representatives are encouraged to for- ward to the department on all matters | of interest to this Government. It must be obvious to every thoughtful member | of the American public that in th normal discharge of their duties our Ambassadors and Ministers carry on many frank and friendly discussions with the officials of the countries to which they are accredited. It must also be obvious that it is their duty end ractice to forward to the departme! n their dispatches and cables their personal and confidential opinions and comments regarding all matters relai- ing to the intercourse botween th> two governments. A publicition of these Feports would make impossible the ade- | quate and effective conduct of our | foreign relations and it has never been the policy of this Government so far as | 1 know to consent to their publication “I shall consider further whether there are any documents or parts of documents in connection with Mr. | White's testimony the publication of which would be in accord with the department’s policy Johnson replied with a statement say- Ing the department was in “a strange ( and anomalous situation.” He charged that “dispatches in which our people are vitally interested are vead by a department of our Govern- ment to international bankers and denied to the rest of our people.” Johnson said the State Department’s offer to furnish the correspondence in confidence to the committee would pre- clude public discussion of the informa- tion this revealed Full Statement Given. Johnson's statement follows “I do not propose that any contro- wersy over the production of documen however important that subject may | be, shall divert us from the very much | more important subject of the imposi- | tion upon the American public by in- | ternational bankers of foreign secur- ities, and the consequent tremendous | financial losses of our people. The ac- | tions of international bankers in im- poverishing the American people are under investigation, and no red herring across the trail, no matter whence it | emanates, shall divert us Ay “The American public, however, | should know just what is in dispute at | gresent with the State Department, and ere are the facts: Yesterday, at his| own request, and voluntarily, Under- | secretary of State White, without the) slightest interruption, was permitted at great length to present his views. In the course of his statement, of his own volition he recited the contents of certain dispatches received by the State Department from the representa- | tive of the United States Government t Bogota, Colombia. “Some of these dispatches thus volun- tarily recited, by him contained refer- ences to the Barco concession. These dispatches, in some instances, were read, he stated, in substance to the representatives of international bank- ers in New York City; and in one instance, with the exception of a brief part of the dispatch, which did not | relate to the subject matter, a tele- gram from our Tepresentative at Bo- gota was read verbatim to the repre- sentatives of international bankers in New York Takes Refusal as Insult. “It is true the Undersecretary of State said he read these in confidence but he stated at the same time that they were to be transmitted to the| bankers themselves, and he voluntarily yecited their contents publicly to the committee. After he had voluntarily recited these dispatches, he was asked to produce them. He declined to do £0. because he would not submit their contents for publication, and yet he was reciting their contents in the pres- ence of the combined representatives of the press of the Nation. who were SPECIAL NOTICES THE ANNUAL MEETIN: hoiders of The Cranfo held at its office. 305 ton. D. C. at 11 o'clock am January 19th, 1932. for the electio cers for the ensuing year and the $ion of such other business as may before the rr»;‘u‘ri« ansac com| CRANFORD, Preside; (Seal) _ H. L. CRANFORD. Secret #FHE ANNUAL MEETING OF THE STOCK holders of "the Atlantic Building Company will be held at the office of the com- 119 South Pairfax street. Alexandria Vireinia, Thursday. January 21 eleven o'clock A M the election of officers €ompany_business ATLANTIC BUILDING COMPA yron M. Parker. Jr. Pr Robert_C._ Dove. Secretary-Treas. VAN_NESS ORANGE GROVE. 1101 WAT! wt.—Sweet. th Julcy Florida oranges. tree-ripened, 55 for $1; lower grades. 50c per hundred 4 I WILL NOT BE RESPONSIBLE FOR Al debt contracted me in perso EDW. L DINGES s d . WANTED RETURN LOAD F( to Atlanta or nearby Star o MEMBERS OF THE MC 1 America, with h Vited to attend & public | cers of all camps at_Nort and F sis. nee. on Tuesday eve ary 19. 1932, at 8 o'clock. I o 11:30 without charge. H District_Deputy DOES ANY ONE OWE YOL us et it for you—anywhere collection ces unless coile Federal Protective Bureau. 301 National 3078 IF YOU CANNOT KEEP Aloe Arborescens (Fertol-Tres Box 108-C. Star office ELECTRICAL ers. irons. washin frical appliances Teasonable brices Inc.. Any -3 ALL men H MONEY No charge d Blds A FERN, TRY d). " Addr Yar M CLEAN- A Dist FOR SALE — PRINTING able. Address Box 353-C DAILY TRIPS. FULL AND PAR Baitimore. Philadelphia. New Y Richmond_and sll points service Phone N: ATIONAL RY ASSOC 1317 New Yo e eal Mo INVALID ROLLING CHAIRS. FOR RENT,OR Eale: complete line of new and used chairs all sizes. styles and adiustments: reduced Prices Also folding rhairs. wood or metal UNITED STATES STORAGE CO. _ 418 10th 8t _N.W Met. 1843 MOVING OUT OF TAKE _AD- vantage of our ur e made pos perat fleet of vans. Sa Davids ster & B other SHOP. _REASON Star office . LOADS. d TOW! FROM NEW YORK FROM LONG ISLAND TO NORFOLK And_all points N, LINES JAN. 26 JAN th' and We SMITH'S TRANSFER & STORAGE 1313 You St. N.W. Phoncs North 334 Furniture Repairing Upholstering Chair Caneing CLAY ARMSTRONG 1235 10th St. N.W. WMetropolitan 2062 Bame location 21 years, which insures low prices and high-grade workmanship APPLES, SWEET CIDER We have a large supply of our usual co.. 2-3343 | advice cellor, Dr. Bruening, have had the resul cellor Br more difficult and at present almost impossible acti the establishment of & loyal reconciliation between basis of reason. We had a feeling of real consternation when we learned of the communication made by Chan-i Sir ‘More “Scraps of Paper” Former French Premier Sees Blow to World Morality if Germany Is Permitted to Disavow Repara- tions Agreemerits. BY EDOUARD HERRIOT, Prench Radical Leader, Former Premier. PARIS, January 16 (N.AN.A.) —The declarations of the German chan- 1t, which to us is deplorable, of rendering on by those who desire to ser Germany and France on the Let us try frankly to say why. uening to the British Ambassador, Horace Rumbold, telling him of the end of all payments We wo conference further. to believe ever that in the form of reparations nder what good purpose the proposed at Lausanne will serve. We go even We feel that it is not possible any longer in the legitimacy of a contract, what- contract may be, if the signatures free- ly appended to it can thus be contested at any moment. Even idealists who have worked with all the strength of their minds toward a final peace are asking today of those who possess an independent consclence rality in the face of contemporary ills? mi what is to become of international More “Scraps of Paper.” One even may ask what is o become of morality pure and to return We wer Germany name by chief of the center party, Edouard Herriot, Dr. Kaas. the battleficld.” was giving the chancellor not an order, to speak de- cisively. Thus Germany considers that she is paying tribute in paying for the consequences of the ruins she ha cumulated, of the fires she has lighted and of the sufferings she inflicted for four years on men and things. We can possibly understand a policy of destruction ordered for military rea- sons, but when a beaten Germany, forced to fall back, lays waste for the pleasure of laying waste a city such as Cambrai, which raticn for Dr. K if to make reparation? If public opinion said no, then it would be necessary to give up all hope of injecting morality into human pol- icy; it would be necessary to abolish manity to live like the beasts of the field under the protection.of force alone We_Frenchmen will never submit to such a view. Calls It Tragedy. “Definite solution of the reparations problem!” What do these words mean if none of the signed contracts is ever carried out? So long as such words are uttered by party chiefs alone, they are not very serious The tragedy is that the head of a government should indorse them and that in the name of Germany, which signed the Young plan, a chancellor as worthy of respect as Dr. Breuning should bring them to the knowledge of other governments through their Am- bassadors. We know that the German Ambas- sador in Paris conveyed this message to Premier Laval. I know that a sec- ond telegram from Berlin to Reuters (a news agency) tried to minimize the impression produced, and a condition was introduced into the new text with a view to diminishing the measure of Tefusal It said: “Germany is Incapable of paying either today or in the future if the economic recovery of the whole world is to be brought about.” e recognize a difference in shade, but it is only a shade, and will not be persisted in. Now, we Frenchmen are men of good actually then reporting them. He said that he would submit the dispatches in confidence to the members of the committee. For a department of our Government to read to international bankers telegrams of grave conse- quence to our people, and to deny them to the people themselves, is. in my opinion, an insult to those I repre- sent. “After this first refusal, I asked Mr White to bring copies or transcripts of the telegrams which he purported to recite, and which he said he had read to international bankers, deleting from them everything which might not be pertinent to our inquiry, or which might in any fashion affect our inter- national relations. He spreifically de- clined to do even this. We have pre- sented, therefore, the strange and anomalous situation: “(1) Dispatches in which our pcople are vitally interested are rezd by 8 department of our Government to in- ternational bankers and denied to the rest of our people; “(2) The offer is made that these dispatches will be shown in confidence to members of the committee, wkich, of course, precludes them from discussion publicly. Summarizes Incident. “(3) The representotive of the Sec- retary of State recited verbally what he says these dispatches contained, and yet -Tefuses to permit the committee to See the dispatches themselves.: “(4) The Secretary of State's office asserts there may be, in these dis- patches, something which would be foreign to the investigation, and the publication of which might b2 irrita- ting in our international relations; and yet, when asked to delete any such por- tions end bring to the committee only a transcript or copy of that which was communicated to the international bankers in New York, he flatly refuses. This is the record in the case. “Secretary of State Stimson, before the committee this morning, said he would further consider the matter.” DRIVE OPENED TO END FALSE BANK RUMORS Federal Agents Sent to Ohio to Round Up Persons Responsi- ble for Stories. By the Associated Press. CLEVELAND, January operativess have been sent here from | Washington to round up persons spread- ing false stories about national banks of Cleveland and Northern Ohio, United States District Attorney Wilfred J. Mzhon revealed late yesterday he Federal men are working in this | district under direction of Willlam G. Harper, chief of the Government secret service in Cleveland, Mahon said. Their investigation will be directed against | those spreading malicious rumors con- cerning national banks and banks which are members of the Federal Reserve | system | " Criminal prosecution and prison terms await any persons found guilty of | circulating such rumors, Mahon said. | He added that “some of the statements |are vicious in nature, and could do | great damage to the banks, their clients and the public at large.” Mahon said that in a day or two the agents would extend their drive Northern Ohio cities. Headquarters for the-round-up will be in Cleveland. DECISION Dle ON POLICY National Woman's Party to Make Announcement at Meeting. An important decision regarding the future legislative policy of the National Woman's party will be announced today Alva Belmont Mrs. Harvey W. Wiley, national chair- Bigh-grade apples and sweel cider ockville Fruit Farm pe Juice 3 Terminal Refrigerating Corp., 55, W, e — man, will preside. Several speakers will praise Mrs. D.I H. P. Belmont on her services to the party in time, money and leadership. Today 1s Mrs. Belmont's niversary. in which he said on wp till now for a solution of the reparations pro afterward had to be| rebuilt stone by stone, is she not bound | the idea of duty and to condemn hu- | 16 —Pederal | to Youngstown, Akron, Toledo and other at a meeting of the National Council in | House on Capitol Hill | Dirthday 8n-J (Gopyrisht. simple. In view of the Japanese affair, of violation of the Kellogg pact and of the dis- avowal of the reparations agreement, are we going to a general regime of “scraps of paper?” well aware that almost the whole of had repudiated undertakings given in its its rulers. We had read the speech of “The struggle carried blem has been but a prepa- foith. International experts were ap- pointed to meet at Basil and define the Ycal position of Germany.. What did these independent and competent men {cll us? They declared that assuredly present-day Germany cannot pay, /partly, indeed, because she has spent enormous sums for equipment and also because some of her nationals sent their capital abroad View of Experts. added that Germany | would certainly recover her economic balance, Every man of good faith will consequently realize it would be in- human to attempt to force Germany t pay now. But the same men also will conclude that it would be against morality for Germany to wish to profit by the kindness displayed by her former enemies in ordey to transform provi- sional relief into & permanent dis- charge of her obligations An explanation given by Chancellor Bruening to the Wolff News Agency provides a third version of the inci- cent; that is to say, the third explana- tion after the two Reuter telegrams. This time we Inay consider that we are in possession of the real viéws of the Geérman statesman. What did he say? He announced that he could not allow the present | system of payment to be perpetuated, | and that he could not accept any more compromises. It is a total abolition of reparations that he is asking. | Chancellor Bruening consequently |takes up a position not only against |the French Nationalists, but also against | those Frenchmen who sought to help | {bim. We know the ultra liberal views | of our League for the rights of man For having published an article by its president, Victor Basch, the Republican Review has been suspended. In order to back this offensive certain papers have declared that France has already xscéi\‘ed in reparations more than she paid. | The experts Untrue, He Says. | This is not true. Our ministry of | Ainance has published the reiutive fig- ures and we are ready to discuss them to_tne fallest extent France is told: “You will receive nothing more in reparation for your ruined land and for reconditioning battlefields, but you will pay to vour last sou the United Sta‘ec, your former ally, If you do not accept this con- tradiction in terms, we will denounce you to the whole wcrld as a nation which disturbs the peace and as a country of imperialists.” We are free citizens and we will not give way to such a threat. We feel that a spirit of violence underlies such a declaration as is raade to us. If Chancellor Bruening, who was received | in Paris with so muca consideration, | is obliged to express the sime principles as Herr Hitler, that i a problem of | German internal polizy which does not concern us. But we Frenchmen may ask, “Wh; not Herr Hitler himself?” We evac uated the Rhineland befors the time fixed by treaties. Did we recei single word of thanks? Hardly our soldiers turned their backs they were insulted. - a | had | when | . Generosity Pledged. Let nobody abroad he under any illusion concerning ny article in the Depreche de Toulouse written by a journalist in a moment of ill temper against this eternal reparations problem which s constantly cropning up. France will be generous, but she will not be stupid. France, moreover, knows :v{?:l(“n;n)wl financial _difficulties are her | 9 3 Awadting her in 1932, These will be met \w”i(-il" l\mxld stop treating us as if e pavere disobedient chilaren in con- stant beed of whipping. Let the world Stop offering us a piece of suzar if we il ugw.\d and give “Ip our securily sariyy, “tlitude humiliates us unneces- | France is one of the old major na- ;.::::‘ \‘\\)H(!l has never .s\lblnlll?djl(! Vio- Jotteeithout protest in the name of Senatey, David A Reed, United Stat:s | ator, has told us that his country o c l)l n c umstances seize e issets, That would indeed be | Sension of the question. But even if Shoadr Reed took my' books or my llm“uv\u(e wd not make me admit that ¢ Must in fairness recognize that ‘]c;::ramTaG!"llnman bapers, like the Ber- Setia bil( att, have admitted that it [0 doneey mpossible for their country | the aounce. by a unilateral decision, L aoung plan. which bears the sig- s of four Reich ministers. o Legality Recognized. for g TSt credit Vossische Zeitung o caspcomect atlitude in stating that se of dispute an appeal to The Hague tribunal would be the paly legittc mate course. n).d recognize the legality vy nat vew and we have nothing to (nheat Britain is reserving herself for he Lausanne conference. We feel that m"x)n;;:d“mrumnu that country an J Preting its silence as a sin of approval Lord Rothermere’s | é\uung News humorously writes “the ; €rman as a republican has lost noth- ng of( n‘xe unfortunate habit which n;“&:‘,? )l,“; : l‘ul\ml imperialist. : €INg able to open his mwm without putting his foot Imlu :l‘ 4 Ve say rather less freely that the €erman scarcely ever makes a mistake in estimating the material elements of problems, but that he is nearly always wrong in estimating the moral elements of the same problems : r. Bruening wanted to E anted to frighten us, (but fear is not the feeling %u which | Frenchmen most willingly ~ give = way. | The German chancellor risked wrecking the Lausanne conference, the usefulness f ,?x.:r};;fh I must admit I do not see very | He has no doubt had an im- | mense satisfaction in eamning the ap- proval of the Italian | "In France Dr. Br::r\lix::m;::' need- lessly stirred a | lessly Up men who have the | most_sincere respect for wim. But if | Bruening loves his country. it happens that we, 00, are passionately devoted to ours. So far as I um concerned, 1 believe it is necessary for the future of peace to prove that pacifists are neither g:ndsnor {Sentnlly deficient. Through . Bruening's idea peace hz DF e has received 1032, by the Newspaver. Alllunce, s ) ARETH | taxpayers of the country would be com- TAR, WASHINGTON, (OPPOSE DEBTS CUT FOR ARMS SLASK Congress Leaders’ State- ments Reveal Unwillingness to Bargain With Europe. ___YContinued From First Page.) |is none in the country. Certainly the political party which advocates such a policy during this year of the presi- dential campaign will be snowed under.” Senator Watson, Republican, of In- diana, Senate majority leader: “I ‘agree to cancellation or reduc- tion of foreign debts under no condi- | tions that might be imposed. Several Jof us for a while thought that if they {would wipe out reparations in Europe !and very largely reduce armaments {and armies we might consent to scal- ing down of the debts, but that po tion was rendered untenable by reason {of overwhelmingly adverse criticism. land I do not know of anybody that is advocating even that “I have been hoping that the other nations would not permit France to jockey them into a position where we should be compelled to treat with them en bloc. I have believed all the while that we should deal with each Euro- pean nation in accordance with its present capacity to pay, just like a Lank deals with its debtors differently situated. I believe pay in full and it is perfectly ridiculous |to think that she will not pay because Fngand cannot pay or Belgium cannot v in full or Italy can pay but little.” Senator George H. Moses. Republi- can, of New Hampshire. chairman of the Senate Rules Committee and presi- dent pro tem: “I do not think the temper of Con- gress contemplates a cancellation or even a revision o fthe war debts. The con- flicting volume of information regard- ing the ‘ability to pay' of our debtors seems to me to lead to a conclusion of inaction—even if I do not discern a direct and possible hostility to any pol- icy of cancellation or revision. As for cancelling or revising the debt in con- sideration of any reduction in the armament budgets of our debtors, T am of opinion that we should not attempt to bribe Europe to do that which it ought to do voluntarily and for its own good.” “Might Ease Payments.” Senator Wesley L. Jones, Republican, | of Washington, chairman of the Sen-| ate Appropriations Committee “I am not in favor of cancelling any of the European debts, nor do I feel that we should give those debtors any further extension of time. If they feel they must repudiate the debts, they should be left to do it and take the consequences. IT the Disarmament Conference should adopt definite and concrete steps toward worthwhile dis- armament, then I would feel disposed to give some consideration to sugges-| tions with reference to making their debt payments to us easier, but not otherwise. I am sure the American people feel, as I feel, that most sub- stantial reductions have been made in regard to those debts already—too much, in my judgment. Snator Kenneth McKellar, Demo- crat, of Tennessee, member of the Sen- ate Appropriations Committee: “I consider it a misnomer to talk| about European war debts. Ameria already has canceled the war debis. Europe owes us for money loaned toy her at the cheapest rates ever received by a government—money for the re- habilitation of her countries and the administration of her various govern- ments after the war. Speaking for myself, I am utterly opposed to any| further reduction or cancellation of these debts and I believe that an over-| whelming majority of the American | people feel tHe same way about it. Neither the Congress nor the people { have any faith that the European pow- | ers will agree to drastic cuts in their | disarmament budgets. They might make some gesture to that effect in | order to get the debts cauceled, but| they are not going to reduc> their | armaments and we are idling away our time when we act upon that theory.” “Paid for War Many Times.” | | eign Relations Committee: “I cannot hazard an opinion on the particular question as to whetnci debt ! reduction or cancellation would be our | | reply to European disarmament. But this much is sure—if there is ony j chance of Aunerican approval for the it is a half, if necessary, will be composed | readjustment ¢f the war cebts only on the busis of some such con- sideration as that which you describe. | Even this consideration would Lave to be very definite and very [ormidable in order to challenge American ap- proval. The truth of the matter is, that we have already paid our snare of the war cost many times over.” Representative Rainey of Illinois, Democratic majority leader in the House: “In my judgment the present Con- gress would not assent either to curtail- ment or cancellation of the war debts. 1 am absolutely certain that the people of the United States would not approve of either curtailment or cancellation. Either proposition would mean that the pelled to assume in the one case a con- siderable burden and in the other case a very large amount of taxation. If the European powers which owe us money would make very moderate cuts in their armament budgets, they would be able to pay us what they owe us. I understand that their expenditures for | armaments have increased 65 per cent | since 1913 and that these increases alone amount now to about eight times | as much as they pay us in money. Members of Congress who voted ‘by wire’ when Congress was not in session (I refer to their telegrams to the Presi- dent) are anxious to have the propo- sition again come up before Congress of a further postponement for another year. It will probably come up next May or June. They are anxious thor-i oughly to clear themselves by voting against another extension or by voting against a curtailment or a cancellation | of the debts.” “Should Reduce Arms.” Representative Wood, Republican, of Indiana, ranking minority member of the House Appropriations Committee: “In my opinion the people of the| United States are unalterably opposed | to any further reduction in the Euro- | pean war debt obligations and under ho circumstances will they consent to & | cancellation of them. and think the majority mind of our ] people is of the same opinion, that the Furopean nations should make a dras- | tic reduction of their armaments in| order that they might be the better able %o pay their obligations. I do not think we should make any proposal or hold out any hope that by reason of their doing this thing which is their bounden duty to do we in turn would reduce ir debt to u i m;l‘.ep‘iesent.xlm- Bacharach, Republi- can, of New Jersey, member of the House Ways and Means Committee: | “There is only one condition under which 1 would give consideration to the curtailment or cancellation of our foreign war debts, and that would be! upon concrete evidence on the part of our foreign debtors of their readiness drastically to cut their armament budgets. ~ Until they do that I would be opposed to any further modification or reduction in our foreign debt. «price Is Too High.” resentative Purnell, Republican, chi;‘:ilnna, m-~mber .of the House Com: mittees on Rules and Agriculture: | ‘o cancel war debts upon an agree- ment of Europrm‘-nr muonsm twh '5‘"‘;1 ts in their armam u A ice for the. United ises which in the DG that France can |p: BY REX COLLIER. NCLE SAM s, ready to inject & $2,000,000,000 stimulant the nervous wreck that business. The injection, to be author- ized by Congress in passage of the President’s Reconstruction Finance Corporation, is to be given where it will do the most good—in the sorely afflicted nerve center of all business, the finan- cial system. That system reaches out into every part of the great industrial Whole, and any disturbance of the ganglion is felt throughout the structure. Just now the financial nerve center is ‘suffering from a bad case of frozen assets. ‘This condition, brought about by a state of melanch the depression, has been followed by vmptoms of paralysis touching the far Teaches of industry. As a result. much of the Nation's business has what is commonly called the jitters. Double-Barreled Tonic. President Hoovey and his economic advisers decided the patient needed & Gouble-barreled _tonic, _potent With credit and confidence. The greater o {hese ingredients, it was agreed. is con- fidence. An_ injection of credit by & doctor in whom the patient has little Sonfidence would be of doubtfu value. The solution was & stimulant pre ared administered and _guaranteed | unconditionally the United States | Government itself. £ ngL(\Ch a remedy is p\n\ldg"d by the new peacetime “War Finance C&)I”pm‘gc- [ fion.” the real name of which will the Reconstruction Finance Corpora- tion, creation of Zhich wes voted in time Yy ongress S‘S}C‘z;‘: are a few minor items to be emoothed out in conference before the Jegislation goes to the White House for signature of President Hoover. "The measure will set Uncle Sam up as a specialist in first aid. Loading a hypodermic with $500,000,000 from the United States Treasury, with a reserve of $1,500,000,000 from possible bon All give the banking system a few Gl Ny “shots” of credit, a friendly slap on the guarantee O immediate emer Salutary Effect Seen. e knowledge that the hypo- dermic is available and that Uncle Sam. in person, will administer it wi have a salutary effect, economists de- clare. The Nation's vflr}m‘l:\aalr ‘é:xubllss a ely psychological : i (hose who have studied the pituston new life into the banks By infusing I!ndy(.he!r correlated fellows in distress e insurance compan Ahe dit- it 1s hoped, will be restored, frozen assets will be released, money will go into circulation, and business in general will be benefited, ointed out. PCrhus the corporation is mot class legislation for the bankers and insur ance men an general restora industry. Representative Luce of Massachusetts, supporting the plan on the floor of e se.” emphasized the _broad ameliorative potentialities involved “If we let the people know,” he said. “that the resources of the Government are at their command in case of need, then we hope to have precisely the same thing that happens in the course of Tuns on banks. when anxious deposi- fors will stand in line for hours. and on finally reaching the teller’s window ond learning that they can get their Toney, throw overboard any Wish to get the money and ask to leave it in the bank. “The thing that { favorable results in the gency, &t least. The mert tive for all branches of we are doing now is | to tell the people of the United States that the Government is going to save {them. Therefore, the value of our leg- islation is in proportion to the extent to which it will allay fear. * * * Everybody to Benefit. It is my own belief that if once you set going the tractors Aacross prairies, if you once set going the Wheels of our factories, if you once set Senator Vandenberg, Republican, of going every form of industry and ac- | | Michigan, member of the Senaie For- | the benefil will reach to every citizen, and that is the only way I know by which you can put an end to this depression.” The new corporation, with a half- billion-dollar _capitalization subscribed by the Government and authority to sell bonds for an additional billion and tivity, of seven members, three of whom are ex-officio members and four appointees of the President. The House bill would make the Sec- retaries of Agriculture and of _the Treasury and the governor of the Fed- |eral Reserve Board ex-officio members | of the corporation, while the Senate bill Federal Farm Loan Commissioner for the Secretary of Agriculture. This discrepancy, along with other differences, must be ironed out_in .conference. The President will appoint the four other members, who may be officers of the Government. The corporation will have authority to make loans to banks up to 10 per cent of their capital stock, taking as security paper which is known to be sound but not capable cf being liqui- dated under the stress of present con- ditions. Cash to Be Turned Loose. Liguidation of these frozen securi- ties will turn loose cash with which impending bank failures may be averted and the resources of depositors conserved. Credit will be re-established and the normal course of business aided. The Federal loans will be available Let our debtors pay or refuse to pay. If_foreign governments should fail or refuse to pay us, I am in favor of for- ever considering such debts as unsatis- fled obligations.” Representative Luce, Republican, of Massachusetts, member of the House Committee_on Ways and Means.” “Unless 1 mistake the temper of the House, its members feel aggrieved that this country has been indirectly financ- ing fortifications and armament in Eu- rope. By so much as we have foregone payments due us, we have released funds which foreign countries have used in “preparation for another. war. Until we get definite assurance that this will stop, many of us are quite un- substitutes the I am of opinion, | willing to relieve European debtors of | their obligations, unless temporarily, a: in the case of the present moratorium. (Copyright. 1932.) I WRECKING Job at John Marshall Place and Pa. Ave. N.W. into | surance company and agricuitural as- is | sociations and to railroads approved by olia induced by | last week. | issues, the country’s old reliable physi- | pack for confidence and a | jes and railrcads— | it is| d railroad interests, but a | the | . JANUARY 17, 1932—PART ONE Uncle Sam to the Rescue His Creation of the Reconstruction Finance Corpora- tion Likened to a Physician’s Injection of a Stimulant to Restore Jaded Nerves. ,to any bank, savings bank, trust com- pany, building and loan association, in-; | the Interstate Commerce Commission. | Banks already closed and in process ot liquidation are not excluded. | "The loans will run for three years, | with provision for two-year extension. According to its proponents, the cor- | poration at no time is expected to have all of its capital invested. Experience | with the War Finance Corpcration in- | dicates that not all of the original fund of $500,000,000 may be needed to stabil- ize credit and restore confidence. The war-time body, capitalized for a similar | | sum, had no’more than $134,000,000 outstanding in loans at any one time. In this connection Senator Walcott | | of Connecticut told the Senate that | Gov. Meyer of the Federal Reserve | | Board and Undersecretary Mills of the Treasury concur in the belief that the | corporation will be so financially strong, | | with the Treasury back of 'it. that| | “enough confidence will be created by | [the very act itself so that the banks | and railroads probably will not call on more than the actual capital stock of | $500,000,000.” Stand or Fall Together. There was much discussion in Con- gress as to whether the corporation | would help “little business” as well as | “big business.” It was made plain that | all kinds of business, small and large, are interdependent. They must, in the end, stand or fall together. The smaller ones succumb first, but the insidious repercussions often’ prove fatal to the bigger corporations As Representative Stewart of the Committee on Banking and Currency explained, the corporation is_intended to relieve and cure the ills of all branches of agriculture, commerce, in- dustry and finance, “no_matter how small the institution applying for aid may be.” Representative Tucker of Virginia ex- pressed it this way: “We have here a bill not for the relief of farmers, laborers, merchants and doctors, but for the relief of the | whole people of the United States.” And Mr. Stewart summed the plan up as follow: “The direct result of the enactment | of this bili, in my judgment, will be to bring hoarded money out of safe deposit | boxes and out of stockings and to start \lhz streams of liquidation that will | ultimately relieve our present economic | difficulties.” |ITALIAN BUDGET SHOWS | DEFICIT OF $81,228,000 Revenues F;l &942,00-0.000 Below Estimates—Officials Blame “World Crisis. By the Associated Press. ROME, January 16—Italy’s 1931-32 budget, approved today by the Council of Minisems, shows a deficit of $81,- 228.600. | The estimated revenue is approxi- mately $942,000,000 and the expendi- tures about $1.023.000,000 Government receipts are listed as $13,000,000 less than last year. | The deficit, said a statement by the council, #'reflects the world crisis, but | the government will take into considera- | tion between now and the end of June, 11933, the possibility of balancing the | budget in line with any further devel- | | opments of the situation.” | " Expenditures for the ministry of war | | are listed at $150.000,000, for the min- | istry of marine $78.000,000 and for the | ministry of air $38,000,000. Full ex- | penses for these three branches are $3,- 500,000 less than last year. " FIRE ROUSES GUESTS Blaze in New Yorker Hotel Con- fined to One Room. | NEW YORK, January 16 (#).—More | than 100 guests were routed from their | slumbers early today by fire in a room | on the thirty-eighth floor of the Hotel | New Yorker. ! Hotel employes, Teinforced by city | firemen, confined the flames to one ! | room, which was occupied by Trow- bridge Stanley of Bronson, Mioh. The contents of Stanley's room. in- cluding some of his personal efTects, were badly damaged. The origin of the fire was not determined. ' MRS. HERDON INST ALLED | Mrs Nathan Herdon was installed as president of the Ladies’ Auxiliary of the | Southeast Hebrew Congregation at a | session Priday in the vestry Toom of the synagogue at 417 Ninth street south- enst. | “Other officers installed at the meet- | |ing were Mrs. David Danov, vice presi- dents; Mrs. Albert M. Baker, secretary, | and Mrs. Willlam Liff, treasurer. | | Rabbi George Silverstone was the | guest_of honor and principal speaker. | | | | | | | | | I B first sun- beam! BROWNING § BAINES | Oxiendan ! (Enffzz If's Vacuum Sealed! M LUMBER $ 8.00 Per Thous. Feet Also Other Material at Sacrifice Prices. HARRIS WRECKING CO. 361 Pa. Ave. [l Pb. NA. 9196 Salesmen on Premises - * DEBT PARLEY DELAY URGED BY LAVAL TO HARMONIZE VIEWS | (Continued From First Page.) war, France's policy for the World Dis- armament Conference, which will meet at Geneva on February 2. Papers Urge Delay Morning newspapers of Paris also will suggest tomorrow the advisability of postponing the reparations conference. Stephen Lauzanne, writing in Le Matin, will say that' it is difficult to understand why any one should want tha conference to open next weck vonditions are not pressing, he will say, as the Hoover moratorium lasts until July, and a postponement wotld be advisable to let the political situa- tion in Germany straighten itself out through the presidential and Prussian elections in the Spring. His article suggests there may be a chancc that the present condition of the world will have an opportunity to change in the next five months. CONTINI PARLEY PREPARATIQN. British Delegates Do Not Expect Lau- sanne Postponement. LONDON, January 16 (#).— Great Britain’s delegates to the Lausanne Debt Conference are continuing preparations for the opening of that meeting on January 25, despite reports in Paris that it might be postponed. In of- ficial British quarters postponement was not expected. There still has been no indication from Downing street as to what the British policy will be, but an influen- tial section of the press, basing its comment on_ hints from official quar- ters, has indicated a growing support for the views exprested a few days ago by Sir Walter Layion against a reparations moratorium of one or two | vears. Instead of advocating a five-year respite for Germany, as was the con- sensus until recently, opinion is now veering to a plan for making the Leusanne conference a mere formal gathering for receiving a report from the Young Advisory Committee which met some weeks ago at Basel. Thus, while the conference itself would not be postponed, any real con- sideration of reparations would be de- layed until the end of the year. By this program it is hoped in some quarters that reparations and war debts might be linked more closely in order to facilitate a definite permanent settle- ment of the whole problem. 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