| Show i N SID D E EL L STUFF k Politics Politics l and I-i I Finance McClure Syndicate WASHINGTON By Paul Paull Mall MaIlon on onA A lot Alot lot of diplomatic lying obscured the true foreign debt situation n. n There apparently has nas been no attempt at tempt at frankness on the part of anyone any tone one connected ted with ith the sorry mess f. f Every insider here knew that Hugh HughI I Gibson and Norman Davis were hobI hob I t with with MacDonald and Herriot I on the sly at Lausanne Authentic f r sources tell the story that once when f Gibson slipped o ot off to meet MacDonald at it t a country inn inns the French mad k p walked in on them causing an embarrassing situation The The state slate department denials that Gibson and Davis had bad any conversations conversa with European statesmen are i technically true The word co conversations conver ver has a definite diplomatic usage mare describing semiofficial confabs between diplomats Actually there were plenty of coni conversations con con- i in the true dictionary m meaning of the word ft The European statesmen were Just justas as inaccurate te in their descriptions of ot what took place They tried to make 1 their people believe belie we went further I tha than we did I r e e e 0 The i-The The only plain fact in the whole situation is that we are not going to get our mone money No matter what hap hap- pens everyone here privately agrees our eleven billion dollars is gone for good The senate crowd has been moving quietly quieU to tie the he presidents president's s hands hands in in inthe the matter and keep them tied while congress is not in session That is why Senator Borah was eager to tomake make public the telephone promise he received from Secretary Stimson that tha our government regards debts anc andr arid and r separate propositions That is also why Senator Hiram Johnson was anxious to interpret Borah's Bo Bo- Bo- Bo rah's statement as an administration promise that the debts would not be scaled down There are good reasons for believing believe ing lag that both hold to the view that the administration rna may try something while congress is in summer recess C 0 ceo 00 G What President Hoover Is supposed to have in mind Is the creation of a debt commission to consider the propositions prop that will be made from Continued d on Page Two o 1 I Inside i Stuff I Politics 5 Finance Continued from Scorn Puo Pae One abroad That Tat would take of an embarrassing situation off of t tle e administration ad ad- ministration shoulders shoulder He lie 10 might like to get le real ral disarmament disarms disarms- ment meat In exchange for lor bad debts but butI it I Is I doubtful whether bo ho could attempt attempt at at- tempt such a a bold proposal la In the face lace of congressional opinion Borah Borak would go 0 for lor a scheme like that that Johnson would not note 0 e I The Te administration has been alternately alternately alter alter- aler hopping from the frying trying pan to the fire and back again on the issue isue and ad finding both equally warm The first statement that came from it was the true one It I was given by byan byan an official ocial whose integrity cannot be questioned No diplomat likes lying but most find it i a necessary part of their business This one lies les poorly and Infrequently He reluctantly stated we are arc ready to discuss discus debts debt with any Individual nation that wants want to bring up the question queston of its Is debt His ls name cannot be given here because because be be- cause his statement was made in incon incon- con It I is Js safe to soy say he is not an underling S SLater Later Lter Inspired statements from other other oth oth- er similarly high but anonymous sources were made purely for effect effect This characterization applies apples particularly particularly par par- to the administration spokesman spokesman spokes spokes- man who rushed into print the next day with an announcement that we wel w will not consider a scaling down or cancellation Nothing has come directly from the president on the subject He has called caled off of all 11 his scheduled Tuesday and Friday press pres conferences since the debt question queston first was raised S Columns of gush have been written about the big sacrifices made by Europe Europe Eu Eu- rope at Lausanne What they did was to write their debts off of and send the bill bi to us Wall Wal street apparently enty had advance information concerning con con- cering our reluctance to go into the debt matter mater before the elections That explains why the market did not react better beter to the settlement Restoration of European credit means of American sales perhaps perhaps per per- haps quite definitely at first in order to bring pressure presure on us for cancella cancella- tion ton Europe will wi draw the picture that much more will wj come to us if i we do our oU part part It I Is i obvious that the much more will wi come first to the small smal class of American exporters Polls made in congress on the debt question are misleading The senate poll pol showed 79 19 to 1 against cancellation can can- That does docs not mean anything any any- thin thing aS as everybody is against can The inside question queston Is i whether we will trade our debts debt for disarmament disarmament Nobody wants to commit himself himsel publicly on that question question ques ques- tion ton yet yet Secretary Stimson has become the big No man of the administration ad ministration in the debt crisis He answers all al questions that wa way NEW YORK YORE By James McMullin The here is that dope congressional adjournment will be the signal for a anew anew anew new move by the administration The plan as outlined calls cals for lor a meeting in Washington involving industrial industrial industrial in in- and banking representatives from Crom each federal reserve district the federal reserve board the Reconstruction ion tion ton Finance FInace corporation and the White House Spokesmen from each section of the country will vill wi be given an opportunity to air ail their views as to what can be done about speeding re re- covery W. W C C. C of American Telephone and Telegraph let the cat part way out of th bag when he announced publicly that the president was going I I I i L to do something about the situation himself himsel is an advocate of the idea that the government should make loans to corporations to stimulate new business as contrasted with wih loaning only to financial institutions and railroads railroads rail rail- rai roads for the purpose of liquefying old obligations The Pennsylvania's application application ap ap- ap for a loan to carry out its is electrification program is a case in i point pint There is reason to believe beleve that the new business program will wi meet meeta a a sympathetic reception Colonel Colone Early has been regarded as somewhat of or a a visionary by conservative conservative conserva conserva- tive financial opinion ever since he be broached a plan to b base o telephone charges charre on a sliding scale In accordance accordance accord accord- ance with rentals paid by telephone users Such deliberations as the Young committee has held have emphasized the difference of ot viewpoint between industrialists and ad bankers which it is understood here Is i prevalent all aU over over the country county Industrialists have been clamoring for quick action of some kind Bankers have insisted that nothing noth not ing can be done until congress goes home The Te proposed W Washington hington conferences conferences conferences' confer confer- coner are seen here as having a primary primary pr mary political angle Any positive re reconstruction reconstruction re- re re construction program inaugurated by Hoover will wi help his chances for fo re reo election electon In spite spie of the rumpus stirred up by bythe bythe the agreement well wel Informed informed in In- formed opinion in New York is con confident coni i dent that reparations are arc definitely dead The agreement is interpreted as an effort efort by France to maintain the principle of liberty of of action acton in the event that the United States refuses to move in the scaling down of debts Members of the financial community community who are in favor of debt revision are bitter biter at Neville Chamberlain for inferring that American representatives tives in Switzerland were consulted before the Lausanne Lusanne pact was adopt adopted ed They feel he has strengthened the resistance of Borah McKellar and other congressional leaders to any change in American policy A bank official says that Chamberlain Chamberlai has re retarded re- re world recovery bv by six month n S S New York banks which hold bold German Ger Ger German man mm obligations are not as a encouraged as a they tey might be by reparations de They do not consider that the chances for lor default deaul on German Ger man private debts debt are materially re re- re Several bankers privately paid think these thue debts are arc not Ikel likely to be S a a aThe The local banking community was extremely pleased with the declaration declaration delara declara declara- tion ton in favor of the gold standard by byte bythe bythe the te bank of international settlements Montagu Normans Norman's signature to the report is expected to counteract an any managed currency propaganda which may arise arie at the imperial conference at Ottawa Inside InIde advices here indicate that tat Mr Normans Norman's adherence to gold was influenced by the English desire to win France to a solution of the reparations rep rep- rep problem France Fance will wi profit when England goes gos back on the gold told standard |
