Brussels, Jan. 6. M. Julius Barmat, the financier implicated in the scandal involving funds of the Belgian National Bank (by which the Van Zeeland Cabinet fell, died this morning in the Prison de Forest, where he has been held for several weeks. He died from assured to-day with the announcement that President Roosevelt would soon send a message to Congress recommending appropriate naval expansion.
The announcement was made by Mr. Edward T. Taylor, member of the House of Representatives Appropriations Committee, following a conference with President Roosevelt.
The Assistant Secretary of Navy, Mr. Charles Edison, Admiral W. D. Leahy, Chief of Naval Operations, and Mr. Fred M.
Vinson, Democratic Representative of Kentucky, also took part in the conference.
"The President's message will speak for itself," Mr. Taylor said when questioned on details of the naval expansion programme. It was understood, however, that no definite decision has yet been reached regarding the number and type of warships to be constructed. The United States, observers believed, has no intention of sur pa: ing British naval construction at present.
Congressional leaders meanwhile prepared to rush action on the greatest peacetime military and naval programme in the history of the United States. Americas reply to the troubled world conditions and the Panay bombing is expected to be the appropriation of $1,000,000,000 for the Army, Navy and their air arms.
Mr. Roosevelt's decision to support Naval Department recommendations for an enlarged naval construction programme was not unexpected as it was known that the President was dissatisfied with the present strength of national defences. The regular budget for the coming fiscal year will afford the Navy approximately $576,- 000,000, but supplementary appropriations probably will be made before Congress adjourns for the summer, if the arms race continues, Navy on Two-Power Basis Naval circles here speculated as to whether the President eventually place America on a two-Power naval basis, supplying the Navy Department with sufficient warships and personnel to fight a combination of any two Powers including a Pacific and European nations.
The Navy during 1937 commissioned 24 ships, including one aircraft carrier, one heavy cruiser, two light cruisers, fifteen destroyers and five submarines. A greater number of ships for 1938 will be called for in the President's message, observers believed.
Stiff opposition is expected to develop in Congress, particularly in the Senate where the neutrality bloc is strong. National indignation over the Panay bombing and the recommendations of the President, War and Departments, are however, expected to result in appropriation of sufficient funds for completion of the enlarged naval programme.
Text read from the printed page and cleaned; old type leaves the occasional error.