Evening Star Newspaper, December 15, 1932, Page 4

SIX NATIONS PAY WARDEBTSTOU.S. Five Others Default as Date for Payment Arrives. Gold Earmarked. (Continued From First Page.) | tinued voluble in their denunciation of | the French attitude, the course was be- ing sighted for future discussions of these troublesome international obliza- tions. Potition Is Taking Form. After the payments and defaults all} have been checked, the American posi- tion for the immediate future will shape itself more positively. Until today, it had been: Pay and create a better understanding for talk of reconsider- atlon or default. Official circles held the view that today's developments would play a defi- nite part in formulating the message on War debts which President Hoover has promised to dispatch to Congress. In it he is expected .to recommend that Congress create an agency to study Snew the debts question and its ye- Jation with the world-wide economic conditions. But what course he may suggst for dealing with ~defaulters heius the mujos saterest of Congress. Congress is on reccrd in opposition to cancellation or reduction, and re- sponsible chieftains of both parties have said they would not agree to establisn- ing a new Debts Commission. In View of this adamant stand, the ez ing avenue open appeas 1o diplomatic channc's, elect Roosevelt put forth as the de- sirable means of hearing new petitions for revision. o With passage of payment day, foreign debtors undoubtedly will initiate new moves for settlement of the vexing problem, with Great Britain leading the way. In announcing it would pay this time, that nation made it plain that the imperativeness of new discussions formed its basis. Might Not Get Hearing. Whether the British action in paying promptly would gain for it a more favorable consideration of its conten- ticns than soccorded defaulters was a subject of speculation. There was talk in some quarters that in line with Gov. Roosevelt's ideas, Mr. Hoover might designate some diplomats to hear the pleas of Great Britain and others who pay, even though Congress should de- cline to approve creation of a debts agency. However, those who discussed the {ms.umilmu of any new conferences ooking to reconsideration were inclined to believe France, which has refused to pay the $20,000,000 in interest due today unless an international parley was certain, and other defaulters might not receive’ & hearing, until some settle- ment of their obligations had been made The State Department last night made public the Belgian note inform- ing this Government that “serious finan- cial difficulties” prevented that na- tion from resuming payments, but it concluded: “Belgium is still disposed to collaborate fully in seeking a general settlement of intergovernmental debts and of the other problems arising from the depression.” Evidence of Hatred. From the Polish embassy came the statement that “the Polish government profoundly regrets that it has been im- possible to find a solution satisfactory to bsth governments.” ‘The French decision not to pay drew a round of criticism from members of Congre:s yesterday, with cne, Rep- Tesentative Knutson, Republican, of Minnesota, going so far zs to offer a resolution which would forbid entry into the United States of securitles issued by governments that have defauited; pro- hibit their advertisement for :ale and bar the securities from the malls. Repres:ntative Britten, Republican, of Tllinois, sald this: “The refusal of France to pay her honorable debts to the United States at a time when her ability to pay is unquestioned can only be re- garded a> an expression of French hatred toward the United States and the things we stand for." BRITAIN PAYS DEBT. Gold Is Earmarked for U. §.; Negotia- tions Planned for New Terms. LONDON, December 15 (#).—By the simple process of “earmarking” an im- posing pile of gold bullion bars lying in the vaults of the Bank of England, Great Britain paid the United States today the $95,550,000 due on the Brit- ish war debt installment. e Federal Reserve Bank of New York was supplying the gold for the actual payment to the United States Government on the date the agreement stipulated and the gold, “earmarked” here for the Federal Reserve Bank, will be shipped later by the Bank of Eng- land, as required by the American bank. Announcement that Great Britain was sticking to the letter of its agree- ment, made in the House of Commons last night by Neville Chamberlain, chancellor of the exchequer, brought cheers. He added that Great Britain ‘would continue to press for more lenient debt terms. Refers to Lausanne, He said the Lausanne agreement which practically wiped out German Teparations and is the basis of Euro- pean demands for eguivalent debt re- ductions by the United States, was reached with the approval of the United States. Mentioning the joint statement issued by President Hoover and former Pre- mier Pierre Laval of France, he said: “The United States Government in- dicated also to our Ambassador, Sir Ronald Lindsay, that if European pow- ers devised a reasonable reparations settlement, this would be method of approach with a Tevision of the war debts to the United States.” (The American Government has main- tained there is no connection between debts owed the United States and rep- arations.) No Gold Moved. ‘There was considerable criticism of the manner in which the Government has sought revision of debts during the Commons_debate. Meanwhile the British government officially informed the American Gov- ernment that it had given the neces- sary instructions to its “bankers,” the Bank of England, to make the debt payment. It should be noted that when the treasury instructed the Bank of Eng- land to make payment it deposited treasury bills against the withdrawal of gold to support the - note issue. Otherwise today's transaction was ac. complished on per—entries, Ccross- entries, cabled advices and documents of instructions. Great Britain paid America £29,500,000 worth of solid gold, t not an ounce of the precious metal eft these shores. BRITISH BUDGET RAISED 'LONDON, December 15 (#).—A sup- ylemenm’y estimate of £21,420,955 was ssued today o meet additional de- mands of the Irish Free State services and the ministry of labor. The ministry of labor requirements total £18,000,000 owing to additional provisions required because of the large amount of unemployment. The need for the money required by the dominions office for the Irish Pree State services presumably arises from the financial dispute over payment of the land annuities. The estimate calls for £2,288,000 for land purchase to meet deficiencies 'in ln‘coae‘ on the land purchase account an Irish lsnd purchase fund. ~— ‘ i ‘| ind_any plausible reason why France, THE EVENING STAR, WASHINGTON, D. Text of Belgian ‘Note Government Informs U. S. . That Sacrifice of Repara- tions in Morgtorium Created Situation Making Default Necessary. Br the Associated Press. The following is a translation of the text of the note in French de- livered to the luntuz of State yes- terday by the Belgian bassador, ad- vising the United States that Belgium cannot make its payment on war debts: “In his declaration of November 23 last, the President of the United States| rccalled the basss on which the d"bti ) of cconcmic conditic:: i pacity to pay of each debter nction. } “In his annual report for 1924-23, the Secretery of the Treasury of the Unitcd States definad the idea of ca- pacity to pa{.l 8uch capacity does nob imply the chligation, on the part the "foreign debtor, to pay to full lmit of his present or future capacity. “The debtor government, he said, muat be able to persevere and im- prove its economie position, assure the balancing of its budget and place its finances, as well as tem on sound basis. It able to malntain, and if prove, the atandard of living of ita citizens. “In ita note of December 5, the Bel- glan government aot forth what were its monetary sys- the effects for Belgium of the mora- torium, the initiative for which was n by the President of the United States in 1931, and of the Lausanne agreement, which resulted therefram. Actuated by a spirit of solidarity, Bel- gium, being desirous of contributing to economic recovery, saorificed a oredit whith was guarenteed to her by '.3 mest solemn engagements, and whie eon: ba'ancing of her publie finances. “This gocrifice to whish she con gonted, added ta tha effeets of the g2 erzl paralycis of ezonomic activities, braught her face to face with ths most serigus financial difficulties. “Belgium Had hoped that a friendly arrangement taking account of this sit- of | uation might have been reached before Deoember 1. The the payment of 5 Gav- ernment of the United States has judged it ta be “Under such conditions, the Belgium government cannot but atate that these circumatances prevent it fram yesumi on December 15 the payments whicl were led by virtue of the agree- ment mede in July, 1831, Belgium is still disposed to collaborate fully in seeking a general settlement of inter- ®overnmental debts and of the q'.h's problems lr»h\n!rlmm !.heA !i‘D easlon.’ SANCTITY OF PACTS INJURED BY FRENCH DEFAULT 9N DEBTS (Continued From First Page) in the world, herself disregards her solemn ublinugtxln:, ‘sulrmrd: the sig- Japan, which was siifiing within boundaries of the small islands in which she is.compelled to live, it is difficult to of all countries, should have repudiated her obligations, even if she felt they were unjust, even if she felt that she had been misled by certain statements coming fram high American quarters. The American Government fully ap- preciates that Premier Herriot was the last man to wish his country to refute her signature. But this is more worry- ing than if Mr, Herriot and his govern- men had wished to repudiate France's obligations. It is a clear indication, that the French government had to follow the “policy of the streets.” The French Republic had many poweriul arguments to base her claim for a re- vision of her debts. Her case would have been strong if she had paid the $20,000,000 she was to have paid today. But the streets of Paris have dictated the policy of the Chamber of Deputies and that is a bad sign. Pact Made by Diplomats. Pacts such as the Kellogg-Briand pact and treaties are not made by the “man in the street.” They are made by cabinets and diplomats, frequently, despite the views the people. After suh pacts and agreements are made, the governments proceed to “sell them to the people,” They are generally suc- cesstul in having them accepted. But when the governments, which are the rotagonists of these treaties, yield to he pressure of the street there can be no_assurance that the treaties will bs enforced at the time when they are most needed. The default of the French govern- ment does not only jeopardize good relations between this country and the French Republic, but jeopardizes the very foundation of the new peace structure. When governments do what they wish “because popular opinion de- mands it”_there is no reason why the same public opinfon should not de- mand a revision of frontiers, or an in- crease of territory at the expense of a weaker nation, and so forth. And the governments and the parliaments which have signed and ratified treaties and pacts will always find the alibi that “our hands were forced by the public opinion.” ‘The State Department, which has been working assiduously for years at a general reduction of armaments, both on land and on the sea, finds today that all the efforts since 1929 are van- ishing like smoke. ‘The Geneva conference has just been postponed with & certain amount of platonic success. The chances of it ever accomplishing anything henceforth are extremely small. A new era of “everybody for him- self,” the State Department thinks, ‘is likely to be the result of the French action. It is not only $20,000,000 which is involved in France's refusal to pay, but the peace of the warld, and the bil lions which will have to be sacrificed to maintain that felce by the force of arms, since treaties seem to be of no further avail when they do not suit one of the signatory parties. Many people here are in sympathy with France's reasons for demanding a revision of her debts. Many more a month or s0 agd would have lhdl&spoken in favor of such a revision being granted to France. But there are few amengst the most ardent friends and admirers of France today who do not see in the precipitate action of the French Chamber a threat to, if not the doom of, the policy of treaties and agreements. OPEN EVENINGS HUGHE, A beautiful, use- fulaccessory for the handbag. HUGHES’ PEN SHOP National Theatre Bldg. 1325 E St. NW. Expert Pen Repairing HERRIOT REFUSES TO HEAD MINISTRY; CHAUTEMPS CALLED ——(Continued From First Page) _ remier, after Herriot rofused and until ‘hautemps was summoned. Others mentioned prominently for the premiershl& ‘were Joseph Caillaux, for- mer_premier and findnce minister in the Briand cabinet; Jules Adolph Bleeg, premier in 1930, and Edouard Daladier, minister of public works. President Lebrun negan the second day of -his cabinet negotiations today and was expected to complete his ac- tivities by night, but the actual forming of a cabinet by whomever he selects was expected to take several days. Former Premier Tardien, after a talk “with ‘the President, said the cabinet| must be of the same complexion as that serving under M, Herriot for the past|P six months, but must include “men who were not hit by the vote.” The man in the street, as he talks to French and foreign friends today, gen- erally expresses the opinioy that the Chamber’s decision to postpone payment to America correctly expresses public opinion ‘The average man is saying that the Hoover moratorjum resulted in cessa- tion of German reparation aaymen's to France, consequently there is no reason why France should continue indefinite- ly to pay America. ‘The man in the street thinks the debt question should be liquidated once and for all by negotiations with America. $10,000,000 INVESTED ST. LOUIS, December 15 (P.—In- dustries of the eighth Federal Reserve district have invested more than $10,- 090,000 for modernization and expansion of plants to aid in business recovery, P. B. Postlethwaite, vice chairman of the Industrial Rehabllitation ~Committee, announced yesterday. The territory comprising the eighth Federal Reserve district is Eastern Mis- souri, Southern Illinois and parts of Arkansas, Kentncky and Tennessee. Postlethwaite said the $10,000.000 int was passed yest when eight n Louis companies-ha@*reported pro- grams for expenditure $412,000 for improvements in connegtion with the Rehabilitation Commmzf: campaign to 8id business recovery. tuted £n ossentiel element for the! | ligation,” he said. JACKSON PRESSURE ONFRANCE RELATED Senator Steiwer Suggests Same Mailed-Fist Polioy in Deht Situation. The action of Andrew Jackson, who used the mailed flst in collecting an oarlier debt from France, was cited by Scnator Sielwer, Republican, of Ore- gon in & dlscussicn of the foreign debt ugtion yosterdey. Th> Uniied Statex, nator Stelwer eaid. would “do well” to follow the Jacksonian policy today. Though he zaid he was not pro g that the United States should go to war to collect the debt, as was threat- end by Jackscn, Senator Steiwer sald he felt the “dignity and severe insist- ence” of the demands made by Jack- son at that time was commendable. “The attitude which our Govern- ment then took was wholly in keeping with the sanctity of an international ob- powers naw, Uy freatine, v o treated as most binding.” Napaleonic War Loases. Refreshing hia memory with the aid of history hooks, the estern Senator vividly toid the atory of Jackson's suc- cessful battle to collect a debt from F.ance growing ou’ of the payment of ind:mnities for losses by American ves- sels during the Napoleonic wars. “The French owed us money and woudn’t pay,” he sald. “Jackson nego- tiated a treaty in which they agreed to pay $5,000,000 in six snnual install- ments. We agrecd in exchange to re- duce duties on French wines, “We reduced the dutles, but the French did not pay much attention te the matter, and two sessions of the French Congress falled to make the appropriation. “l.\\fi"nxm, then Secretary of State, was sent to the French court to collect the debt. The feeling between this country and France became aerious and the people began to talk about war. Nation's Honor at Stake. “Jackson sald he was ready for the | hazard of war. He said the honor of the Naticn was at stake. It went so far that Jackson prepared a declaration | of war.” “That, however, waa never em- ‘oyed. “He Inslited they keep their contract and stood his ground until they paid.” Steiwer read from Jackson's my to Congress in connecticn with the dis- pute, which m%fi glec:t‘x‘rynuug strong language cri e Frencl lt(l?uadl. ‘)‘;e sald thelr tion was “utterly untenable” and sald they were refusing to keep obligations “held sacred by the whole clvilized world.” JAPANESE PEER DEFENDS POLICY IN MANCHURIA |Dr. Inazo Notobe Says Leagua of Nations Does Not Fully Under- stand Situation. By the Associated Press. RIVERSIDE, Calif., December 15.— Dr. Inazo Notobe, member of the Japa- nese House of Peers, told the Tenth Annual Institute of World Affairs yes- terday Japan’s life and honor are at stake in the Manchurian crisis. Defending his country's action against | China and the invasion of Manchuria, Dr. Notobe said the League of Nations | did not fully understand the “back- ground” to the Oriental problem and therefore could not give justice in its rulings. He sald it was unfortunate that the league “acted without full knowleds of the many provocative causes,” add- ing he was “afraid the League i3 not | aware that China does not function as ! a sovereignty.” &mz‘ WASH INGTON Afi?M al SLATER | 1221 CONNECTICUT AVE." A ;ignificcnt preference. Famed Slater quolity. and smartness . . . at prices attuned to present times. What better examples than these lizards and alligators? Presented here in three dis- tinguished designs masterfully executed by Slater craftsmen. So rugged, so hardy...and yet so delicately fem inine. Smart. Comfortable. Long wearing. True economy at these prices. A particvlarly atiractive or brown suede trimmed with matching lizord, . . Anindispensable exford. In brown alli- goter. Alse similar design in bleck . 12%¢ Combining -m;-m durability, In black or brown lizerd. Alse in brown elligeter . 1282 J&J QLATER 1221 CONN ECTICUT AVENUE NEW YORK PALM BEACH SOUTHAMPTON “STYLE...AND A TOUCH OF GENIU C., THURSDAY, $124,934,421 Debts DuetoU. S. Today; Most Will Be Paid not meet their payments. Hungary notified the Treasury sveral weeks ago that it had been unable tq obtain foreign exchange to meet her payment. The amounts due: Relglum, $2,125,000; Czecho- slovakia, $1,500,000; Eathonia, $356,370; France, $19,261432; Finland, $186,335; Great Britain, Lithuania, $93,306, and Poland, 94,427,990, 3 Paris Acoused of Destroying Moral Basis of Ver- sailles Treaty. By the Associated Press. BERLIN, December 15.—Berlin news- papers reached an almost unanimous agreement today that France, in failing to pay the United States, had broken the sanctity of tresties. One nowspsper said Germany might now default its own debts and another said Germany was no longer morally bound to comply with the Versailles treaty. ‘The natlonalist news) Boersen Zeitung, referring to au"fincn debt, crisis, sald “nobody would hinder Ger- many from drawing the Jogieal concly- sion from the bloodsuckers’ attitude & similar declaration, but sche Zeltung, under the headline “Ingratitude,” said, rom, NEW/ tes) generation of German Do.l#‘lchnl aimed at in 14 years." TROUBLE PICTURE. . . *"WON IN LAW SurT South’ Daketa ‘Mas, | Who Lowt, Hotal in Mortguge, Recovers. Strange Canvas. war | BY the Assoelated Press: . EPIDEMIC H(TS ANNAPOLIS 18 Midshipmen in Hospital ‘With | dogs, Catarrhal Fever. ANNAPOLIS, Md., Decamber 13 (). | —Righteen micshipmen were oconfined to the United States Naval Academy | Hospital today with ‘attacks of catar- | Toal fever. | mitted yesterday. Comdr. George L. Weyler, aide to the superintendent of the academy, sald the number of cases was decreasing. He said at one time last week 26 cases of the fever were at the hospital. Eight cases of the fever were assigned to duty at several civilidh in- been confined to their Four new gases were ad-| LEMMON, S. Dak, December 1§.~ Jake Quaschnick was not superstitious, "‘; thereby hangs this tale: ‘ears ago in Minnea, porter D-tl‘ndwd a fioupt?fmfigm m a of yed. The old porter-artist hung the o ting and committed suicide. A gambler brought the picture to the. Standing Rock Res- ervation, near here, and, shortly afte erward, he committed suicide. A stock- man became se0r several Y The piciue B : e picture hung for years the old Palace Hotel beray ovnel?l by Quaschnick. Same time ago he lost the hotel to O. D. Rodenbour, through non- payment of mortgages. Quaschnick sued for the claiming it was not listed mortgages. ‘The South Dakota State Court has decided the picture to Quaschnick, IT PAYS TOPAY CASH AT P-B'S THIS SEASON THE MOST MODERN MEN’S WEAR STORE IN AMERCA Open at 8 tomorrow morning so you can profit by this repeat sale, by request, of Men’s Overcoats and @ -Trouser Suits $1R45 BECAUSE of numerous requests, we are placing on sale at 8 tomorrow morning approximately 400 more overcoats and suits at this remarkably low price. The Suits The Overcoats Chesterficlds, double breasteds, ulsters, belted models and univer- sity styles. Deep, warm chin- "chillas, meltons, whitheys and boucles’ from -the -finest mills. Plenty of blues, Oxford grays, browns and smart mixtures. Richly lined with Skinner’s satin or finest celanese. Sizes 34 to 50. Single and double breasted mod- els for men and young men. Fine worsteds that will give long, hard service. Browns, blues and grays in plain shades and many attrac- tive patterns. 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