The sun., 1919-06-10
SAYS EUROPE WILL
STARVE WITHOUT Us
Herbert Hoover Believes Heavy
Financing Will Be Neces-
sary for O Time.
FAvORS PRIVATE CREDITS
Estimates Half Billion From
Government Will Be Needed
in Addition.
BY fhe Associated pv>ss.


PANS. June .. - Herbert c. Hoover,
chairman Of the Interallied Food Com
mission, was asked to-day for a state
ment as to the financial reduirements of
Europe from the United States during
the next year. He saidi
Any statement Is promised upon peace
and the return of Europe to work. do
not take II we will finance any more
wars In Europe, directly or Indirectly,
or that we will provide money to en-
able the people Of Europe to live without
work. or to work part time. as at pres
ent all over Europe. This sort of eco
nomio dellrium tremens will end with
peace.
The amount of credits from the
United States to Europe during the year
after peace revolveB around the inability
OF the nations 70 pay for (s) raw ma
teriai. machinery and tools, (b) food,
(c) currency reorganization. and cay in
terest on money borrowed from our Gov
eminent
THE volume OF financial assistance
needed. and the solution therefor, varies
with the situation in each State. Neutral
States are fiourishing and need cause no
concern. Rumanla, Greater Serbia, Bull
garia, Arabia, Turkey, except Armenia /:
Portugal Greece and Hungary will be
virtually self-supportinB. In fact, some
or them should be able 10 export food,
ana with other commodities they can ex-
port they can pretty we'll provide for all
their necessities, except perhaps, railway
reconstruction material, agricultural i'm
Elements and currency Reorganization.
These States represent nearly one-thlrd
the population OF Europe.
Baltic Problem Not Serious.
Poland and the Baltic States will pro-
duce almost enough bread, grains and
vegetables for their own people but will
be short Of fats. II they obtain re-
sources for currency reorganization and
some working capital for raw material
imports 80 as to get exports going they
should. with economy, be self-supportins
within very few months. Czecho- Slo-
vakia, Belgium and Finland have a
larger import problem, for they always
require breadstufrs, meats and fats
throughout the year to supplement their
own production. These people are al
ready moving theoretically to get their
industries going. even under the terrible
difficulties presented by the armistice
situation. They must have working cap
ital to reorganize their currencies, pro-
vide raw material and meet the food
problem for a while.
The economic problems OF most of
these States are simple when compared
to the larger European nations and the
world will be astonished with their re-
coVery II they have peace
There will be great poverty among
Individuals who have suffered loss d.
rectly from the war and these indvid-
uals Will comprise proper scene for
charitable work for many years, but It
VIII be individual. not national. as has
been the case this last winter
The condition OF Germany and Ger
man Austria cannot be discussed intelli-
gently until peace Is signed. or the
100000 Germans In these two States
some 25.ooo,oo0 to 100000 lived be-
fore the war 10y trade, and these can
not be supported on the land. How
they will pay an Indemnity and at the
same time obtain credits for raw mate
rails is problem for the new commits
sion whose duty 1t will be to insure
maximum reparation. II they do not
get raw material and food they never
will be able to pay indemniues.
italy in Greatest Need.
The larger allied States have. OF
course, an uphill load to pull In the
resurrection OF industry and their
economic lie. Franco has the smallest
need OF the three for food imports.
Great Britain can feed herself largely
from her colonies, but both will need
financial help in the providing OF cred
its for raw material. and Italy will
need not only assistance in raw mate
rails, but In the providing OF food sup
plies. They will also want relief from
the payment OF interest for some time
on what they owe the American Treas
ury.
Altogether. the dominant problem
In the rehabilitation of Europe ia one
wholly OF credits with which to huy
overseas. and If such financing can be
provided Europe should be on SOLE
supporting basis within another year.
Whether the United States will under
take third stage In our Intervention
IN Europe must be for Congress to de-
eide. The first stage was to end IN.
war. the second TO feed the people nm
Ill peace and harvest
IN my own personal view the larrest
part OF the credits required from the
United States should be provided by nri-
Vate credits and we should. except for
certain limited purposes. stop the lend
ing or the money Of our Government
Il feel that something like half a hiI.
lion dollars assistance from the AnerI-
can Government may be needed TO toin
with the other Allies in the reoreanIza-
ton or the currenCies OF the new States
and to take care OF some particularly
acute and otherwise unsolvable situa-
tons.
''On the other hand. much larger sums
Will be required from private credit for
raw material and food. and in order 70
Insure that the private credits to Cow
ernments, and especially to individuals
should be established, our Government
probably would need 10 consider soma
further measures OF announcement in
this direction. Some solution must ba
found or we will again be faced with
starvation in some parts OF Europe when
the forthcoming harvest is exhausted
we may have some further political
revolutions in Europe. but In my view
the great danger OF the Red Terror and
destruction by Bolshevsm has been
miigated greatly and actually win have
passed In some countries on the signing
OF peace.
IF we undertake TO give credits. we
should undertake 1t in definite, organ
lied manner. We should have consoli-
dated. organized control of the assist
ance we give In such a way that n
should be used only II economy in i'm
ports is maintained and IL the definite
rehabilitation OF industry is under
taken--if the people return 10 work. n
orderly government is preserved, lighting
is stopped. disarmament IL undertaken,
and there ia no discrimination acoin.t
the United States.
"If these things are not done. F,rc,o
will starve in spite OF all we can do.
The surplus of our productivity could
not support a Europe OF to-day's idle
ness IN evpTy man