00493 MA, Songress, Hause, HEARINGS BEFORE THE COMMITTEE ON FOREIGN AFFAIRS SEVENTY-FOURTH CONGRESS FIRST SESSION ON H. R. 7125 TO PROHIBIT THE MAKING OF LOANS OR THE EXTENSION IN SUCH CONFLICT AS AN ALLY OF AND H. J. Res. 259 TO DEFINE A NATIONAL POLICY OF PEACE AND NEU- Cout. Supt, Pic, 9-21-35 AMERICAN NEUTRALITY POLICY TUESDAY, JUNE 18, 1935 HOUSE OF REPRESENTATIVES, The Committee met at 10 o'clock a. m., Hon. Sam D. McReynolds, chairman of the committee, presiding. The CHAIRMAN. The committee will please be in order. This hearing is on H. R. 7125, a bill introduced by Mr. Kloeb to prohibit the making of loans or the extension of credit to the government or national of any nation engaged in armed conflict, unless the United States is engaged in such conflict as an ally of such nation. The bill is as follows: [H. R. 7125, 74th Cong., 1st sess.] A BILL To prohibit the making of loans or the extension of credit to the Government or national of any nation engaged in armed conflict, unless the United States is engaged in such conflict as an ally of such nation Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter it shall be unlawful within the United States or any place subject to the jurisdiction of the United States for any person, firm, or corporation to make any loan of money or to extend credit, either directly or indirectly, to the government or national of any nation engaged in armed conflict, or to any political subdivision of such government or any organization or association acting for or on behalf of such government, or national, or political subdivision thereof, except a renewal or adjustment of existing indebtedness, unless the United States is engaged in such conflict as an ally of such nation. SEC. 2. Any person violating the provisions of this Act shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than five years, or both. (H. J. Res. 259, introduced by Mr. Maverick, appears on p. 9.) Mr. Kloeb, we would be glad to hear from you. STATEMENT OF HON. FRANK L. KLOEB, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OHIO Mr. KLOEB. Mr. Chairman, I would like to make a brief statement on the bill so that the members of the committee will thoroughly understand the provisions of the bill and the motives that prompted me to draft this piece of legislation. I think the members of this committee recall that in 1933 we considered in this committee, voted out, and passed a bill providing for a general embargo on the shipment of arms. I think that bill was Senator Robinson's bill. It failed of passage, as I recall, in the Senate. The following year, in 1934, we considered, voted out, and both Houses of Congress passed the Johnson-McReynolds bill, which 1 |